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2024 (5) TMI 1069 - ITAT MUMBAIAddition u/s 68 - Unexplained Cash Credit - loan taken from various parties - amount received during the earlier years and current year - Genuineness of loans and interest payments - HELD THAT:- We observe that except M/s.Frontline Diamond Pvt. Ltd., all other loans taken from other parties are continued from earlier assessment years. Therefore, the addition can be made only to the extent of loan taken by the assessee during the current assessment year. Therefore, the other continuing loans which are brought forward from earlier assessment years has no relevance to the current assessment year considering the fact that the AO in those assessment years is already proceeded to make the additions in those assessment years. The assessee has to prove genuineness of the transactions u/s 68 only to the extent of credit recorded during the current assessment year. New loans taken by the assessee during the current assessment year - When the assessee repays the loan which was taken from this party, therefore, this itself shows that assessee has demonstrated the genuineness of the transaction. Assessee has submitted all the relevant documents relating to above transactions before the Tax Authorities and AO merely relying on the survey report and analyses the creditworthiness of the parties on the basis of earning capacity of the parties, the AO has made the above said additions. Therefore, in our considered view the assessee has taken the loan from all the above said parties through banking channels and repaid the same as discussed above. The addition can be made during the current assessment year only to the extent of the loan taken by the assessee during the current assessment year can be considered for discussion. Assessee has submitted the relevant documents and proved the genuineness of the transactions and repaid all the loans taken by the assessee partly during the current assessment year and balance in the subsequent assessment years. Therefore, the additions proposed by the AO is not proper - we direct the AO to delete the addition proposed in this case. Accordingly, Ground raised by the assessee is allowed.
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