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2023 (11) TMI 494 - AT - Income TaxAddition u/s 68 - unexplained credit - absence of supporting evidences i.e. source of income of the person who provided the loan to the assessee, creditworthiness of the person cannot be verified - CIT(A) deleted addition - HELD THAT:- CIT(A) has deleted the addition by adopting a very casual approach and without dislodging and controverting the allegations of the AO based on logical analysis of the facts and circumstances of the case. CIT(A) has only considered the passport and bank statement of assessee which establish the identity of creditor. We are unable to see any evidence substantiating the financial capacity and position of lender who, as per assessee has undertaken transactions of more than Rs. 334 crore during relevant financial period we are unable to see any balance sheet or any audited or unaudited accounts of the creditor establishing his financial capacity and creditworthiness to extend interest free loan which has not been repaid till date. It is worth to mention that on being asked by the bench the ld. AR could not show us any documentary evidence or prove regarding payment of interest to the creditor and repayment of loan by the assessee to the creditor till date and he fairly accepted that the assessee has neither paid any interest on the unsecured loans nor has repaid the loan till date. Therefore, we hold that the ld. CIT(A) has granted relief to the assessee without controverting and dislodging the basis and allegation of the AO thus, we are not in agreement with the basis and conclusion drawn by the ld. CIT(A) and hence, we reverse the same by restoring the assessment order and addition made therein. Accordingly, grounds of revenue are allowed.
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