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2020 (2) TMI 923 - AT - Income TaxUnexplained cash credit u/s 68 - HELD THAT:- Assessee has filed complete set of documents with regard to each and every amount of loan given to assessee right from 03/01/2012 to 02/11/2012 and also explained corresponding source of income for amount transferred to the assessee. We further noted that the loan creditor has explained the source of income out of encashment of mutual funds investments, sale of listed equity shares for which necessary contract notes from brokers and bank statement has been filed. Similarly, in respect of an amount of ₹ 20 Lacs transferred on 16/04/2012, the source has been explained from amount received from Saritha Barshikar wife of lender, for which necessary bank statement has been enclosed. The assessee has also filed income tax copy of loan creditors for the relevant financial year. From the above, it is very clear that the identity, genuineness of transactions and creditworthiness of the loan creditor has been explained with necessary evidences. CIT(A) after considering relevant facts has rightly came to the conclusion that the assessee has discharged onus cast upon u/s 68 in respect of unsecured loans taken from Mr. Ajeet N. Barshikar. No contrary evidence has been borught on record to prove findings of facts recorded by the ld. CIT(A) are incorrect. Additions towards interest paid on unsecured loans as unexplained expenditure - Once loan transactions between the assessee and the creditor has been found to be genuine transactions, which satisfies the conditions prescribed u/s 68, then interest paid thereon cannot be considered as unexplained expenditure. Accordingly, we do not find any error the findings of the Ld.CIT(A). Additions made towards cash deposits in ICICI banks and amount received from Gartner India Research, we find that the ld.CIT(A) has recorded categorical findings, in light of evidences filed by the assessee that said information has been reconciled with reference to return of income filed for the year. Hence, we are inclined to uphold the findings of the Ld. AO and reject ground taken by the revenue.
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