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2020 (1) TMI 1239 - AT - Income TaxAddition u/s 68 - ingenuine loans - Whether genuineness of the transactions cannot be established merely on the basis of documentation filed by the assessee and further probe is required to ascertain whether what was apparent was real? - CIT-A deleted addition - HELD THAT:- Assessee has paid interest on said loans after deducting necessary TDS applicable as per law - AO was never brought on record any evidences to prove that the assessee had paid cash to the loan creditors in lieu of loans received from them. It is also not in dispute that the assessee has repaid said loans in subsequent financial years through proper banking channel. CIT(A) has recorded categorical findings in light of various evidences filed by the assessee, including confirmation letters from the creditors and observed that the assessee has filed necessary details, in respect of each and every loan creditors to establish the fact that transactions between the parties are genuine, which are carried out through proper banking channel. CIT(A) has rightly appreciated the fact that in light of various evidences filed by the assessee before reaching to the conclusion that unsecured loans taken from those parties are genuine transactions, which are supported by the necessary evidences. There is no error in findings recorded by the Ld.CIT(A) and hence, we are inclined to uphold the findings of the Ld.CIT(A) and direct the Ld. AO to delete additions made towards unsecured loans taken from those parties and consequent additions made towards interest paid on said loans. - Decided against revenue.
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