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2015 (6) TMI 636 - AT - Income TaxAddition of unsecured loans u/s. 68 - CIT(A) deleted addition - Held that:- The assessee had produced all the required documentary evidences and discharged its onus as far as those 76 creditors are concerned.The AO did not make any further inquiry.So,in our opinion,order of the FAA does not suffer from any legal infirmity.In case of remaining 14(JVA and 13 creditors about whom the assessee filed details before the FAA)creditors the FAA had rightly held that it had failed to discharge the initial burden. FAA had rightly deleted the addition of ₹ 2.99 Crores.The AO had made no effort to verify the details filed by the assessee before him.He could have at least made preliminary inquiry about them.He made inquiry about four persons directly and on the basis of such inquiry made an addition of ₹ 3.55 Crores. Provisions of the section 68 do not permit such action- on the basis of specific inquiry general additions cannot be made.Hon’ble Rajasthan High Court in the case of R S Rathore (1994 (7) TMI 45 - RAJASTHAN High Court) has clearly laid down the said principle. No discrepancy was found by the AO in the documents filed by the assessee. Therefore,upholding the order of the FAA, we decide the first limb of the first ground of appeal against the AO. Second part of the first ground deals with deletion of interest amount of ₹ 40.37 lakhs.While deciding the appeal filed by the assessee,we have upheld the decision of the FAA in restricting the interest disallowance.Second ground of appeal is also decided against the AO.
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