2021 (1) TMI 319 - ITAT AHMEDABAD - Income Tax

Head Note / Extract:
Addition u/s 68 - AO treating the loan as unsecured cash credit - HELD THAT:- Admittedly, in the case on hand, the assessee has discharged its primary onus by furnishing the necessary details such as copy of PAN, confirmation of the parties, Bank extracts etc. to support the transactions. The necessary details of the parties in support of the transactions are available in the Paper Book. Similarly, there is also no dispute to the fact that all the transactions were carried out through the banking channel. Thus the inference that flows from a cumulative consideration of all the aforesaid contending facts is that the assessee has discharged its onus imposed under Section 68 of the Act. The details filed by the assessee was not cross verified by the Revenue from the respective parties despite having the necessary details in its possession. Thus, we are of the view, Revenue cannot go to hold the addition under Section 68 of the Act in the given facts and circumstances. See CHANAKYA DEVELOPERS [2013 (10) TMI 7 - GUJARAT HIGH COURT]. Creditworthiness of the lender was justified by the assessee. Once the cash credit gets explained within the parameters of the provisions of section 68 of the Act, then the question of disallowing the interest expenses does not arise in the given facts and circumstances. In view of the above, we are not impressed with the finding of the ld. CIT-A and direct the AO to delete the addition - Decided in favour of assessee.