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2017 (5) TMI 535 - ITAT RAIPURUnexplained cash credit u/s.68 - Held that:- The addition to the income of the assessee as unexplained cash credit can be made where any sum is found credited in the book of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory. No error in this finding of the CIT(A) could be pointed out by ld D.R. during the course of hearing. Further, it is observed that regarding balance four loan creditors from whom loan of ₹ 24,00,000/- was taken by the assessee, the assessee filed the loan confirmations, copy of income tax returns, balance sheet, computation of income and capital account of the loan creditors. Thus, the assessee has discharged its initial burden of proving the identity, genuineness and creditworthiness of loan creditors. Thereafter, the Assessing Officer has not brought any material on record to show that either the loan creditors are bogus or that they did not have the capacity to advance the loan to the assessee. Therefore, in our considered view, the addition u/s.68 of the Act to the income of the assessee is not warranted. - Decided in favour of assessee. Addition on account of interest on unsecured loan - Held that:- The disallowance of interest was made by the Assessing Officer as he had held that the unsecured loan as not genuine and added the same u/s.68 of the Act. As we have confirmed the order of the CIT(A) that the loan creditors are genuine, therefore, the disallowance of interest paid to the loan creditors cannot be made. Accordingly, we hold that the CIT(A) was justified in deleting the disallowance of interest made by the Assessing Officer - Decided in favour of assessee. Addition on low withdrawals for household expenses - Held that:- CIT(A) correctly deleted the addition on the ground that the wife of the assessee is income tax assessee who has shown withdrawal of ₹ 60,000/- for household expenses in her return of income filed. - Decided against revenue Estimating the net profit rate - Held that:- It is not in dispute that books of account of the assessee has not been rejected by the Assessing Officer before estimating the income of the assessee by applying net profit rate. Therefore, in our considered view, the addition to the income of the assessee cannot be sustained in law. See CIT vs. Utkal Alloys Steels Ltd. [2009 (3) TMI 379 - ORISSA HIGH COURT ] - Decided against revenue
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