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2019 (2) TMI 799 - AT - Income TaxAddition u/s 68 - unsecured loans received from seven parties - disallowance of interest on the aforesaid loan amount - Held that:- All creditors were having sufficient bank balances in their bank accounts for giving credit to the assessee. Thus, there were no reasons for the AO to doubt the creditworthiness of the creditors except creditor mentioned at sl. No. 2. The AO has not made further investigation on the veracity of the documents submitted by the assessee. The issue is, therefore, squarely covered in favour of the assessee by order of the Tribunal in the case of M/s Topline Buildtech Pvt. Ltd. (2018 (4) TMI 793 - ITAT DELHI). AO has nowhere mentioned in the order, if assessee was asked to produce the creditors for examination on oath. No evidence has been brought on record, if the amount in question came from the coffer of the assessee. There is no dispute that AO accepted the identity of the creditors. These facts, therefore, show that assessee has been able to prove the creditworthiness and genuineness of the transaction in the cases of the creditors namely Smt. Shashi Lata Bhargav, Shri Prateek Ahluwalia, Shri Sarin Kumar, M/s T.S. Sethi & Sons, M/s C.S. Sethi & Sons and M/s G.S. Sethi & Sons. Thus, additions in their cases cannot be made in the hands of the assessee. The disallowance of interest is also deleted. In the case of Smt. Kamini Ahluwalia-(2), it is not in dispute that prior to giving loan to the assessee there were cash deposits of the equivalent amount of the credit in her bank account. There were insufficient bank balances in her account for giving loan to the assessee. In case of credit entry of ₹ 3 lakhs on 12.11.2010 cash was deposited for clearance of the cheque on 15.11.2010. These facts clearly support the findings of the authorities below that transaction of the assessee with Smt. Kamini Ahluwalia was not genuine. We confirm the addition of ₹ 9 lakhs on account of unexplained credit in case of Smt. Kamini Ahluwalia. The proportionate disallowance of interest in this case is also confirmed - Decided partly in favour of assessee.
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