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2023 (11) TMI 940 - AT - Income TaxAddition u/s 68 - bogus unsecured loan - genuineness of identity and creditworthiness of lender questioned - AO while passing the assessment order solely relied on the report of Investigation Wing and the statement of Manohar Lal Nanglia[as allegedly controlling lender and other companies] - HELD THAT:- As in reply to show cause notice, the assessee while filing its reply prayed for supply of material relied by AO including the statement of Manohar Lal Nanglia and report of investigation wing. Admittedly no such material was provided to assessee. There was no such finding of AO that required details were provided to assessee. We find that assessee in response to show cause notice furnished confirmation of lender’s PAN, bank statement, ITR with computation of income and audited report with relevant schedules.AO has not made any adverse comment on such evidence and no investigation of fact was carried out by the AO. As before Ld.CIT(A), the assessee in addition to objections raised before Assessing Officer, specifically stated that assessee has made the repayment of loan in subsequent year and furnished his bank statement and ledger account of lender. The Ld.CIT(A) instead of getting the fact verified either by himself or from AO confirmed the addition without giving any finding of such submission made by assessee. We find that no adverse view, if taken by department in subsequent year on repayment of loan, is brought to our notice, therefore following the ratio of decision of Ayachi Chandrashekhar Narsangji [2013 (12) TMI 372 - GUJARAT HIGH COURT] that once the repayment was made in subsequent year no addition u/s 68 be made, against the assessee. Once, we have accepted the contention of ld AR for the assessee about repayment of loan, therefore all other submissions against this addition have become academic - Decided in favour of assessee.
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