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2019 (7) TMI 1530 - AT - Income TaxAddition u/s 68 - bogus unsecured loan availed - HELD THAT:- Assessee by placing on record the supporting documentary evidence had duly discharged the onus that was cast upon him to substantiate the identity of the loan creditors, genuineness of the transactions and also the creditworthiness of the parties. As is discernible from the orders of the lower authorities, the assessee by placing on record the PAN details and the copies of the returns of income along with the complete addresses of the aforementioned lenders had substantiated the identity of the aforesaid parties Genuineness of the loan transactions stood duly substantiated from the fact that both the acceptances and repayments of the loans were made through banking channels. Apart there from, the fact that the aforesaid parties had duly responded to the notices issued to them under Sec. 133(6) and confirmed the respective loan transactions also adduces the genuineness of the said loan transactions. As regards the creditworthiness of the lenders, we find that the assessee by placing on record the copies of the bank statements of the creditors out of which the loans were advanced to the assessee, alongwith the copies of their Income Tax returns, balance sheets and capital accounts, had duly substantiated the same. Now when the assessee had duly discharged the onus that was cast upon him, and had substantiated the “nature‟ and “source‟ of the aforesaid credits appearing in his books of accounts, therefore, there was no justification on the part of the A.O to have characterised the same as unexplained cash credits in the hands of the assessee - Decided in favour of assessee. Disallowance of the interest paid by the assessee to the aforesaid lenders - HELD THAT:- As the genuineness of the loan transactions advanced by the assessee to the aforesaid parties viz. (i) M/s Minakshi Exports; and (ii) M/s Puspak Gems have been upheld by us, therefore, the disallowance of interest paid by the assessee cannot be sustained. Interest paid by the assessee to M/s Suman Exports is concerned, we find that as observed by the CIT(A), the loan of ₹ 30 lac that was raised by the assessee from M/s Suman Exports was held by him to be genuine while disposing off the appeal of the assessee for A.Y. 2010-11, vide his order dated 18.12.2017. Accordingly, there would be no justification for disallowing the interest paid by the assessee on the said loan. We uphold the order of the CIT(A) as regards the deletion of the addition of interest that of ₹ 5,69,250/- that was paid by the assessee on the loans raised from the aforementioned parties. - Decided against revenue
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