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2018 (5) TMI 1862 - ITAT MUMBAIAddition of unsecured loans and interest u/s 68 - assessee failed to prove the identify, creditworthiness and genuineness of the said loan - accommodation entry provider admitted in the statement recorded u/s. 132(4) that he is involved in providing accommodation entries which was later retracted - CIT deleted the addition - HELD THAT:- The assessee has filed confirmation letter from the loan creditors along with PAN and Income Tax Return. Assessee also filed bank statements of the loan creditors. The learned CIT(A) has recorded a categorical finding that the assessee has filed various details to prove the identity and genuineness of transactions. Although the parties did not appear before the Assessing Officer in response to notices u/s. 133(6), the assessee has filed all evidences before the Assessing Officer to prove the loan taken from the above two parties. AO has never disputed the identity of the parties. The Assessing Officer also has also not disputed that the assessee has filed confirmation letters from the parties but made addition on the basis of information received from DGIT (Investigation) and statement of Shri Bhanwarlal Jain. But the fact remains that later Shri Bhanwarlal Jain has retracted his statement made u/s. 132(4) by filing an affidavit. Therefore, we are of the considered opinion that the Assessing Officer was incorrect in making the additions towards unsecured loans only on the basis of statement of Shri Bhanwarlal Jain when such statement has been retracted by the party. - Decided against revenue
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