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2021 (1) TMI 676 - AT - Income TaxAddition u/s 68 - addition of unsecured loan - unsecured loan as bogus - HELD THAT:- The assessee explained that during the course of survey no adverse material was found regarding unsecured loan allegedly received by assessee. On the basis of a statement of partner without any further evidence, it cannot be said that assessee received unsecured loan from bogus parties. During the course of assessment proceeding, copy of confirmation of all unsecured loan from lenders along with a return of income were furnished for verification by assessing officer. The loan amounts were received through banking channel through cheques. Thus, the assessee proved identity of lender, genuineness and creditworthiness of the transaction. There was no material evidence before the assessing officer for treating the loan as unaccounted received. Since the assessing officer treated the unsecured loan as unaccounted received consequent interest was also disallowed. AO without any material evidence on record treated the unsecured loan as unaccounted amount received only on the basis of a statement of one of the partner. Though, confirmation of unsecured loan was furnished to the assessing officer. The assessee also furnished the TDS deducted on the interest paid on unsecured loan as well as copy of TDS return. Addition on account of undisclosed receipt - HELD THAT:- AO made addition on the basis of statement recorded during the survey without any supporting evidence or any adverse material on record. The learned Commissioner (Appeals) also concluded that it is settled legal position that statement recorded during the survey has no evidence of value moreover the survey party has no power to record the statement oath. On the issue of estimated addition we have seen that Commissioner (Appeals), while restricting the addition relied on the decisions in CIT President Industries [1999 (4) TMI 8 - GUJARAT HIGH COURT], Kishore Manohar Telwala [1998 (2) TMI 612 - ITAT AHMEDABAD] and Abhishek Indutries Vs DCIT [2014 (11) TMI 810 - GUJARAT HIGH COURT]. Appeal of the revenue is dismissed.
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