Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 27 - AT - Income TaxAddition u/s 68 - assessee was unable to produce the Director of lender company so the identity of lender is not established - HELD THAT:- The transactions have taken from banking channels and if there were sham transactions, then how merely appearance of a Director would have made a difference. It seems the Ld. Tax Authorities have fallen in error in laying too much stress on the failure of assessee to ensure presence of Director of the lender company. The Bench is of firm view that the Act does not mandate how the burden of proof u/s 68 of the Act, to prove genuineness of lender and transaction, is to be established. Each case has to be considered on basis of own facts. The burden on assessee to prove genuineness of lender and transaction is only to rebut the presumption but that does not entitle the Ld. Tax Authorities, to discredit the evidence produced, with a stroke of a whimsical need for a particular piece of evidence only. The quasi-judicial authorities are supposed to examine the evidence produced before them and draw inferences based on their relevance and credibility, to consider if the burden is discharged or not. However, the same seems to be not the case here as presuming the information received from the investigation wing to be sacramental, the Ld. Tax Authorities have failed to appreciate the relevant evidence produced by the assessee and have failed to consider it without impeaching the credibility of that evidence. Suspicion howsoever strong cannot take place of proof. Tax Authorities have fallen in error in citing suspicion alone instead of sifting truth from the evidence produced before it. When the interest income of M/s. Arti Securities and Services Pvt. Ltd. stands accepted by the Department, then the loan disbursed by it to earn that income cannot be considered to be tainted, by attributing suspicion to the identity or creditworthiness of sources of M/s. Arti Securities and Services Ltd. as a lender. Assessee has also provided the copy of order of CIT(A) in case of M/s. Arti Securities and Services P. Ltd. CIT(A) has deleted an addition made u/s 68 in the hands of this company - so called suspicious and dubious activities of the lender M/s.Arti Securities and Services P. Ltd. have been examined in earlier years and nothing was proved by the Department. Authorities below have fallen in error in concluding that the assessee had failed to discharge it’s burden u/s 68 of the Act. Decided in favour of the assessee.
|