Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1872 - AT - Income TaxAddition u/s 68 - creditworthiness of the loan creditor - HELD THAT:- Assessee has been able to discharge the onus casted upon it to prove the identity, creditworthiness and genuineness of the loan creditor. For taking such a view we rely on the order in S. K. Bothra & Sons HUF Vs. ITO [2011 (8) TMI 22 - CALCUTTA HIGH COURT] and Crystal Network (P) Ltd. Vs. CIT.[2010 (7) TMI 841 - KOLKATA HIGH COURT] has observed that the creditors cannot be disbelieved merely because they did not respond to summons when all other documents to substantiate the loan transaction has been filed before the assessing authority. The Hon’ble Calcutta High Court in CIT Vs. Dataware (P) Ltd. [2011 (9) TMI 175 - CALCUTTA HIGH COURT] has held that in case if the AO has doubt regarding the creditworthiness of the loan creditor, then the AO in turn had to seek report from the AO of the loan creditor and thereafter only draw adverse inference against the loan creditor. AO has not made any exercise of this nature to discredit the loan creditor. The assessee has discharged the onus by placing all the documents before the AO/Ld. CIT(A); and the Ld. CIT(A) has taken note of all these facts to delete the addition which is supported by relevant material, so the impugned order warrants no interference and, therefore, we dismiss the appeal of the revenue. Thus, the appeal of the revenue and the cross objection of the assessee are dismissed.
|