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2019 (5) TMI 1370 - AT - Income TaxUnexplained cash credit u/s 68 - loan receipts through prior dated cheque - HELD THAT:- The loan amount is duly reflected under the list of unsecured loans. The account payee cheque have been cleared through proper banking channel in August, 2011. Revenue authorities have not disputed about the creditworthiness and identity of cash creditor Gajanand Ramlal Agrawal. Even the genuineness is not in doubt because the cheques are actually cleared in the bank account. Merely for entering the transaction in March, 2011 and the cheque getting cleared in August 2011 cannot be a reasonable basis to treat the loan amount as unexplained u/s 68 because the validity of cheque was for 6 months at that point of time. The alleged transaction is duly reflected in the books of both the parties, duly confirmed by the cash creditor Gajanand Ramlal Agrawal, bank statements and bank reconciliation statements clearly shows the alleged transactions and from all four corners, we can safely conclude that the alleged transactions of loan of ₹ 1.70 crores is duly explained and identity, genuineness and creditworthiness of the cash creditor is not doubtful. No inconsistency in the finding of Ld. CIT(A) deleting the addition and thus we uphold the same and dismiss the appeal of the revenue.
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