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2019 (3) TMI 1258 - AT - Income TaxAddition u/s 68 - unexplained cash credit - AO disbelieving the genuineness of the loan transactions treated them as unexplained cash credit - in the bank account of the lenders there are cash deposits prior to issuance of cheque to the assessee - Addition based on doubt of creditworthiness of the lenders - statements given under oath by the lenders - assessee has not paid interest on the loan to the lenders - HELD THAT:- Both the lenders have appeared before the Assessing Officer in the course of assessment proceedings and have categorically stated on oath that they have advanced the loans to the assessee. The aforesaid statements given under oath by the lenders have not been proved to be false by the Assessing Officer. Merely because in the bank account of the lenders there are cash deposits prior to issuance of cheque to the assessee and further the income returned by the lenders are not substantial, it cannot be presumed that the lenders did not have the creditworthiness to advance the loans to the assessee. The assessee has filed the balance sheet of the creditors to demonstrate availability of fund. Further, the lenders are income tax assessees and filing their return of income regularly. The loan transactions have also been reflected in their return of income for the concerned assessment year. Nothing has been brought to our notice by the Department to indicate that the loan transactions have been disallowed or doubted in case of the lenders. Therefore, merely on presumption and surmises, it cannot be held that the lenders did not have the creditworthiness. The assessee has not paid interest on the loan to the lenders is factually incorrect. On a perusal of the bank account copy furnished in the paper book we have noticed that the assessee has regularly paid interest on the loan advanced. Merely because the lenders have not shown the interest income in their return of income, does not mean the assessee has not paid interest. It is also seen that the assessee has repaid the loan amount to the lender though subsequent to the date o the assessment order - assessee has discharged the primary onus cast upon him to prove the genuineness of loan transaction as contemplated under section 68 - Decided in favour of assessee.
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