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2019 (3) TMI 491 - AT - Income TaxAdditions u/s 68 - loans received from eight different companies and interest paid thereon - satisfaction of all the ingredients of cash credit i.e. identity, creditworthiness and genuineness of transactions - Assessee produced confirmation of parties, copies of ack. return of income filed by the lenders , copies of the bank statement of lenders, audited accounts of the lenders - CIT(A) deleted the addition - HELD THAT:- CIT(A) apart from appreciating that all the documents had been placed on record by the assessee had also categorically mentioned that the audited accounts and return of income of all the parties, show that the loans given by them to the assessee were reflected in their audited accounts and these parties had not borrowed any funds and thus had utilised their own funds for giving loans to the assessee on which they had earned interest. A.O himself stated that the turnover of these parties was in hundreds of crores and at the same time, AO stated these parties were not credit worthy. In this respect, the A.O had not placed on record any corroborative evidence to show that cash had been paid by the assessee to these parties for availing the loans and had not been able to establish the cash trail at all. On the contrary, the assessee had filed the entire documents, required to establish the identity of the creditors and their creditworthiness, as well as the genuineness of the transaction. CIT(A) had rightly concluded that the loans taken by the assessee were subsequently repaid through banking channels. Thus, if these loans were not genuine, then in that eventuality the same would not have been repaid. Therefore, considering the entirtiy of the facts, the Ld. CIT(A) had rightly held that the assessee had satisfied all the ingredients of cash credit i.e. identity, creditworthiness and genuineness of transactions and accordingly deleted the additions. - Decided in favour of assessee.
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