2019 (4) TMI 2060 - AT - Income Tax

Addition u/s. 68 - unsecured loans and interest thereon relating to said unsecured loans - Burden to prove the identity, creditworthiness of the creditors and the genuineness of the transactions - addition on the ground that the creditors have not responded, only meager incomes were shown by the creditors, truncated bank statements were filed and assessee has not proved that the lender is proprietor of the concern from which loan has been taken by the assessee - HELD THAT:- As in the case of M/s. Shree Laxmi Estate Pvt ltd.[2017 (12) TMI 1658 - ITAT MUMBAI] and M/s. Shree Laxmi Developers Laxmi Developers [2017 (12) TMI 1658 - ITAT MUMBAI] held that once the assessee has discharged his initial burden the burden shifts to the Assessing Officer to prove otherwise. The Coordinate Bench considered the submissions as well as the material placed before the lower authorities and concluded that when once the assessee furnished all the details in respect of the loan transactions assessee has discharged its initial burden and the burden shifts to the assessee. It was held that no addition can be made only on the basis of information received from the investigation wing without there being any evidences to disprove the loan transactions from the creditors

We find that, the assessee has discharged its initial onus of proving the identity, genuineness and creditworthiness of the creditors by providing all necessary details as stated in earlier paragraphs and thus the assessee has discharged identity, genuineness and creditworthiness of the creditors. Assessing Officer has not controverted the evidences furnished by the assessee. No further enquiries have been made by the Assessing Officer to disprove the evidences furnished by the assessee.

As in view of the evidences furnished by the assessee, we are of the view that the assessee has discharged his onus of proving the identity, genuineness and creditworthiness of the creditors and fulfilled the requirement of ingredients of section 68 of the Act. Thus, the addition made u/s. 68 of the Act without any enquiry is liable to be deleted. Thus, we direct the Assessing Officer to delete the addition made u/s. 68 - Decided against revenue.