Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 2007 - AT - Income TaxAddition u/s 68 - AO had issued commission u/s 131(1)(d) to the Assessing Officers of the lender companies who have conducted enquiries from the directors of the lender companies by issue of summons u/s 131 and submitted report to the Assessing Officer of the assessee - HELD THAT:- Directors in their statements recorded u/s 131 have confirmed to have given loans to the assessee company and their bank statements, PAN numbers, audited accounts were also forwarded by AO of the lender companies to the Assessing Officer of the assessee. No adverse finding given by the concerned AO of the lender companies - find that from the date of receipt of the report from the concerned Assessing Officers till the date of finalizing of the assessment order, the Assessing Officer has not made any further efforts to find out that the balance sheets showing creditworthiness of the lender companies and the transactions made through banking channel are false or untrue. The assessee in the instant case, in our opinion, has discharged the onus cast on it and nothing has been brought on record by the Assessing Officer to disprove the same. Merely because these lender companies have done meager business or have declared meager income, the same cannot be a ground to disbelieve their creditworthiness especially when their respective balance sheets show sufficient capital and reserves to advance such loans to the assessee company. The assessee in the instant case , in our opinion, has proved the identity and creditworthiness of the loan creditors and genuine of the transaction. Since the Assessing Officer in the instant case has accepted the identity of the loan creditors and genuineness of the transaction in the letter addressed to the assessee and the concerned Assessing Officers of the loan creditors while giving the report along with their profit and loss account and balance sheet have not given any adverse finding about the creditworthiness of the loan creditors, therefore, considering the totality of the facts of the case, we are of the considered opinion that the assessee in the instant case has discharged the burden cast on it by proving all the three ingredients of provisions of section 68 - Grounds raised by the assessee are allowed.
|