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2023 (6) TMI 434 - AT - Income TaxAddition u/s 68 - proof of identity and creditworthiness of the creditor as well as genuineness of the transaction - as per the post search investigation carried out in case of Third Party, it was found that the said entity has availed bogus purchase bills from some other entities controlled by Shri Dinesh Jain and since, the source of fund is itself doubtful due to the creditor indulging in bogus purchase, the unsecured loan cannot be treated as genuine - CIT-A deleted addition - HELD THAT:- AO has observed that enquiry conducted could find only four creditors available in the given addresses, however, that does not conclusively prove that the rest of the trade creditors are non-existing. When the creditor has stated that unsecured loan was funded out of the sale proceeds available with it and there are outstanding trade creditors, without any contrary material brought on record by the AO, such statement cannot be rejected merely on conjectures and surmises. More so, when the assessee had furnished all documentary evidence relating to the creditor not only to prove the identity and creditworthiness of the creditor but genuineness of the transaction. We do not find any reason to interfere with the decision of learned first appellate authority in deleting the addition made u/s. 68 and the interest paid on the unsecured loan. Grounds are dismissed. Assessment u/s 153A - Addition u/s 68 - whether incriminating material found in search? - HELD THAT:- We do not find that the AO has made reference to any seized/incriminating material while making the additions u/s. 68 - In so far as the documents recovered from i-phone of Chanchal Taneja, Commissioner (Appeals) has recorded a finding that it cannot be considered as incriminating material. Nothing has been brought before us to controvert the factual finding of ld. Commissioner (Appeals) that the additions are not based on any incriminating material found as a result of search. In a recent decision rendered in case of bhisar Buildwell (P.) Ltd. & Ors. [2023 (4) TMI 1056 - SUPREME COURT] has affirmed the view expressed by Hon’ble jurisdictional High Court in case of CIT vs. Kabul Chawla [2015 (9) TMI 80 - DELHI HIGH COURT] Decided in favour of assessee.
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