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2016 (7) TMI 1618 - AT - Income TaxAddition u/s 68 - unexplained cash credits - onus to prove - HELD THAT:- No doubt the primary onus was on the assessee to satisfy the ingredients of Section 68 of the Act as the amount stood credited in its books but it was also incumbent on the revenue to have made enquiries, verification and examination of the loan creditors wherein complete details of the loan creditors were furnished by the assessee instead of merely relying on statement of Shri Surendra Mansukhlal Khandar incriminating assessee, which incriminating statement of Shri Surendra Mansukhlal Khandar had not stood the test of cross examination by the assessee - this matter needs to be set aside and restored to the file of the A.O. and if the A.O. found on verification that the amounts of loan borrowed by the assessee have been repaid by the assessee to the said loan creditors by account payee cheques through banking channel, the additions will stand deleted. Additions on account of interest on these loans - HELD THAT:- We find that the AO has made additions based on notional interest being paid/payable by the assessee on these loans, we did not find any basis/justification for the same as per the facts emanating from the records. This issue is also set-aside to the file of the AO to be decided based on merits after bringing on record cogent material/basis for the said interest to be brought to tax as income of the assessee.
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