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2021 (10) TMI 422 - HC - Income TaxAddition u/s 68 - unexplained cash credit in the nature of unsecured loan received from three entities - tribunal deleted the addition - HELD THAT- As the entire material in case of each of these persons and entities and eventually held that the identity of the depositors had been proved as they had filed the return of income along with the PAN. Moreover, loans have been granted through banking channels and in respect of the same copy of the bank statement also has been provided and hence, genuineness also has been believed by the CIT(Appeals) and further the return of income had been filed by the said depositors and hence, the creditworthiness also has been proved. The appellant provided a copy of audited balance sheet and profit and loss account for the year under consideration in respect of depositors to the Assessing Officer and after verification, the Assessing Officer has the only objection that the company was not having fresh funds in its books of accounts and negligible operational income was derived. CIT(Appeals) has rightly opined that since the depositor company had duly recorded the deposits/loans given to the appellant in its books of accounts out of its own funds or borrowed funds, no addition in the hands of the appellant is permissible so far as the transactions are recorded in the books of depositor company No reason for us to interfere as addition contemplation was under Section 68 of the IT Act which provides that any sum found credited in the books of account of an assessee maintained for any previous year and if the assessee does not offer any explanation about the nature and source thereof or even when explanation is given and the AO is dissatisfied, the sum shown credited in the accounts can be questioned by him. All the ingredients contemplated under Section 68 have been duly satisfied on the aspect of identity of the creditors, genuineness of the transactions and their creditworthiness. Appeal dismissed.
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