Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 598 - AT - Income TaxAddition u/s 68 - source of funds available with lender companies from which the loan lended by the lender companies - HELD THAT:- The income may be a criteria for deciding the issue. But the income is not to be all and end all of everything. For example, a person having a salary of ₹ 12 lakhs per annum purchases a flat for ₹ 50 lakhs. Merely on the basis of his level of income, the addition of ₹ 50 lakhs cannot be made as unexplained investment without understanding the facts. It may be possible that the person might have taken a housing loan of ₹ 45 lakhs and that source would justify his investment. Similarly, income of the lender company cannot be the sole basis for making addition without going into the facts and without understanding the financial statements of the lender companies As discussed the source of funds available with lender companies from which the loan of ₹ 1.50 crores each would have been lended by the lender companies, as explained elsewhere. Bank statements are available at pages 120 of the paper book in respect of Glorious Holding Pvt Ltd, is the bank statement of Kalol Kutir Pvt Ltd and page 156 is the bank statement of New KMS Finance Pvt. Ltd. These bank statement clearly show that the transactions have been done through banking channel and no cash was found to be deposited prior to issue of cheques. Therefore, it cannot be said that the appellant company has purchased cheques by paying cash. The factual matrix with respect to documentary evidences clearly establish that not only the assessee has discharged the onus cast upon it, but has also demonstrated the source of source. Moreover, as mentioned elsewhere, the entire loan amount has been repaid by the appellant company alongwith interest. It would not be out of place to mention here that interest paid on loan for the year under consideration has been allowed as expenditure by the AO. Further, in so far as the addition in respect of loan from Kalol Kutir Pvt Ltd and New KMS Finance Ltd are concerned, the Assessing Officer has made additions simply on the basis of report of the DDIT, INV read with the statement of Shri Binod Agarwal. The appellant company has successfully discharged the onus cast upon it by virtue of provisions of section 68 alongwith the demonstrative evidences and hence, the additions sustained by the CIT(A) have to be deleted. - Decided in favour of assessee.
|