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2019 (12) TMI 405 - AT - Income TaxAddition of income - allegation that primary ingredients of section 68 not fulfilled - fresh unsecured loans received from four parties - failure to discharge its onus of proving the creditworthiness of parties who advanced the loans - Ld. AO came to a conclusion that although the assessee established the identity of the lenders but failed to establish the creditworthiness of the lenders and also genuineness of the said transactions since the assessee did not furnish necessary documentary evidences such as copy of return of income of the lenders, statement of total income, Balance Sheet & Profit & Loss account etc. of the lenders - scrutiny assessment - principles of natural justice. HELD THAT:- The basic facts as enumerated in preceding paragraphs are not under dispute. It is quite evident that no independent inquiry has been made by Ld. AO to ascertain the genuineness of the transactions from loan creditors either in original assessment proceedings or in remand proceedings. It transpires that the additions were made by Ld. AO merely on doubts without bringing on record any corroborative material which would suggest that the loans represented assessee’s unaccounted money - In fact, the identity of the loan creditors was accepted by Ld. AO in the assessment proceedings itself. The documents furnished by the assessee with respect to loan creditors include copies of return of income of the lenders, computation of income, Balance Sheet, ledger extracts and bank statements etc., which we have carefully perused. Regarding loans from Shri Prashant Kamat, the assessee has placed on record Income Tax Return of the said lender, Computation of income, financial statements and ledger confirmations which matches with the outstanding balance reflected by the assessee. Regarding last entity i.e. M/s Shardha Energy & Infraproject Private Limited, the assessee has placed on record the copy of Income Tax Return, Audited financial statements, ledger confirmation - In fact, no fresh loans have been obtained by the assessee from this entity during the year under consideration and the amount of ₹ 211.71 Lacs represent opening balance. The perusal of all these documents would establish that the assessee was successful in demonstrating the fulfilment of primary ingredients of Section 68. There are no reason to interfere in the impugned order - appeal dismissed - decided against Revenue.
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