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2019 (3) TMI 1245 - ITAT MUMBAIUnexplained cash credit under section 68 - genuineness of the loan transaction and creditworthiness of the creditors - discharge of onus of proving the genuineness of loan transaction - HELD THAT:- The assessee has not only furnished the confirmations from all the loan creditors but he also produced various other documentary evidences like income tax returns of the loan creditors indicating their PAN details, bank statement copies, ledger account copies, etc. It is evident, AO has disbelieved the unsecured loan with some general observations like loan confirmations are not in the prescribed format, creditworthiness of the creditors not proved, etc. On a specific query from the Bench the learned Departmental Representative submitted that there is no loan confirmation form / format prescribed in the statute. Therefore, the aforesaid allegation of the Assessing Officer is totally irrelevant. As regards the genuineness of the loan transaction and creditworthiness of the creditors are concerned, it is a fact on record that in course of assessment proceedings, the assessee has not only furnished loan confirmations of all the creditors but has also furnished their income tax return copies, bank account copies, Balance Sheet, ledger account copies, etc. On a perusal of these documents it is evident that all the loan transactions were carried out through proper banking channel. Moreover, the bank account copies also reveal regular transaction. The Balance Sheet and Capital Account of the creditors also reveal that loan transactions are duly reflected in them. AO has not conducted any independent enquiry with the loan creditors or the concerned AO where the creditors are assessed or even with the bank to ascertain the genuineness of the loan transactions. No material has been brought on record by the Assessing Officer to prove either the fact that the creditors do not have creditworthiness or the loan transactions are not genuine. Merely on presumption and surmises the Assessing Officer has treated the loan transactions as unexplained cash credit under section 68 of the Act. Unfortunately, Commissioner (Appeals) has concurred with the view expressed by the Assessing Officer in a mechanical manner without properly evaluating the evidences furnished by the assessee or even conducting any enquiry at her level, though, she is empowered to do so. After overall consideration of facts and material available on record, we are of the view that the assessee has discharged the onus of proving the genuineness of loan transaction - Decided in favour of assessee.
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