Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 298 - AT - Income TaxAddition u/s 68 - Director did not attend the assessment proceedings, ignoring all the direct evidences furnished by the assessee in support of its claim that the initial burden has been discharged by it - HELD THAT:- Merely because the Director of the lender company could not attend the assessment proceedings cannot be the basis for brushing aside the clinching direct evidences brought on record by the assessee. We find that the transactions have been made through banking channel. The entries are duly reflected in the bank accounts of both the parties i.e. the lender and the borrower. We also find that the lender company i.e. M/s Arti Securities and Services Ltd has furnished its complete Income tax details alongwith documents furnished by it to the Registrar of Companies. It is not the case of the AO that the assessee has purchased cheque by paying cash nor it is the case of any accommodation entry, nor there is any allegation or suspicion on the documentary evidences furnished by the assessee which are part of the record. The only reason we find is the non-appearance of the Director before the AO In a case where a sum is credited in the books of account of the assessee, the assessee could discharge its onus by proving three things, namely - The identity of the creditor, The credit-worthiness of the creditor, and The genuineness of the transaction in question. Once the assessee proves all the above three things, its onus is discharged. We have no hesitation to say that the assessee has successfully discharged its onus u/s 68 - Decided in favour of assessee.
|