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2018 (6) TMI 1669 - AT - Income TaxAddition u/s 68 - whether the assessee has discharged the onus by proving the identity and creditworthiness of the creditor and the genuineness of the transaction in respect of unsecured loan from Ms. Jasmine Kochar Kapoor - HELD THAT:- Jasmine Kochar Kapoor has a permanent account number in India but has not filed any return of income in India on the ground that she is a non-resident during the year under consideration and therefore, do not have any income chargeable to tax in India. No evidence is filed with regard to her income in the country where she is living. What is her source of income has also not been explained. The bank account of the assessee in India is filed in support of explaining the source of income. However, from where the credit came in this bank account has also not been explained. In the above circumstances, we are of the opinion that the assessee has miserably failed to prove the creditworthiness of the creditor as well as genuineness of the transaction. We, therefore, hold that the assessee could not discharge the onus of proving the cash credit in the name of Ms. Jasmine Kochar Kapoor. Quantum of addition - It is stated by the learned counsel that in assessment year 201314, the AO made the addition for unexplained unsecured loan but most of the credit is old credit in the assessee’s books of account and fresh loan during the year under consideration was only to the tune of ₹ 26 lakhs. During the course of hearing before us, he referred to the balance sheet of the last year as well as this year so as to point out that there were huge unsecured loans in last year also. So far as the legal proposition is concerned, the addition for cash credit can be made only in respect of fresh credit during the accounting year relevant to the assessment year under consideration. However, what is the actual credit during the year under consideration is a factual thing which requires verification at the end of the AO.Therefore, set aside the issue of addition for unexplained loan to the file of the Assessing Officer and direct him to verify the quantum of fresh credit in the assessee’s books of account during the accounting year relevant to the assessment year under consideration and make the addition only in respect of fresh credit and not in respect of opening balance. So far as assessment year 2014-15 is concerned, the learned counsel fairly accepted that the addition made for unexplained cash credit is ₹ 87 lakhs and which is the fresh loan taken from Ms. Jasmine Kochar Kapoor. Therefore, for the assessment year 2014-15, we sustain the orders of the lower authorities on this point and dismiss the assessee’s appeal.
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