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2023 (4) TMI 676 - AT - Income TaxAddition u/s 68 - identity and credit worthiness of loan creditors along with genuineness of transactions and factum of repayment of the alleged creditors not proved - HELD THAT:- Neither the AO nor ld. CIT(A) has controverted a very relevant submission of assessee that assessee has repaid loans to the respective creditors before initiating the assessment proceedings and in such a situation the genuineness of transaction and identity & creditworthiness of creditors cannot be doubted by the AO Authorities below have not further discharged the onus shifted onto their shoulders to bring on record any positive adverse material against the assessee controverting the documentary evidence filed by the assessee and establishing the fact that the assessee could not substantiate the identity and credit worthiness of loan creditors along with genuineness of transactions and factum of repayment of the alleged creditors. Therefore, we are unable to agree with the findings recorded by the ld.CIT(A) in confirming the addition made by the AO u/s 68 and, thus, we are inclined to hold that the ld.CIT(A) has confirmed the addition without any justified reason and basis and, thus, the same is not found to be sustainable. Respectfully following the judgement of Hon’ble Supreme Court in the case of Orissa Corporation Pvt. Ltd. [1986 (3) TMI 3 - SUPREME COURT], judgement of Hon’ble jurisdictional High Court of Delhi in the case of Mod Creations Pvt. Ltd. [2011 (8) TMI 476 - DELHI HIGH COURT] as relied by the ld. Counsel of the assessee the grievance of the assessee is allowed.
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