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2022 (12) TMI 576 - AT - Income TaxUnexplained Cash credit u/s. 68 - AO treating the unsecured loans received from the depositors as unexplained - HELD THAT:- On perusal of ledger account of assessee, in the books of Madhav Infra Project Ltd. we found that the Madhav Infra as on 1st April 2012 has debited the ledger of the assessee by the account of one Shri Mahendra Solanki. The link in all these adjustment entry was not properly explained. The provision of section 68 requires the assessee to establish the identity of creditor, genuineness of transaction and credit worthiness of the parties. Merely the fact that the amount received through banking channel does not make the transaction as genuine. The assessee needs to explain the transaction properly based on the documents within the parameters of section 68. Coming to the loan amount credited from other two parties namely Akshar Trading Co. and M.S. Carting Contractor - We note that the assessee before us filed a fresh evidences regarding repayment of loan to the above mentioned two parties. Evidences of the repayment of the loans by the assessee is very crucial for deciding the genuineness of the loan entries. These fresh evidences were not available before the lower authorities and therefore, the same needs to be verified at the level of the AO. Considering the ambiguity in the evidences field by the assessee with regard to the addition of Rs. 36 lakh on account alleged loan from Shir Ashok Khurana and fresh material furnished with respect to other two parties, we hereby set aside the issue to file of the AO for de-novo assessment in the light of above discussion as per the provisions of law - AO is directed to provide proper opportunity to the assessee to represent her case and needless to say the assessee will furnish required details and explanation necessary for deciding the issue. Ground of appeal of the assessee is hereby allowed for statistical purposes.
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