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2018 (1) TMI 449 - AT - Income TaxAdditions u/s. 68 - loans from unsecured creditors - assessee had failed to furnish bank statements of the creditors - Held that:- We are in agreement with the findings of authorities below that mere furnishing of confirmations and PAN are not sufficient to prove the creditworthiness of the creditors. The assessee has to prove financial capacity of the creditors. The assessee was required to furnish evidence that would show financial worth of the creditors, such as bank statements, to remove the shadow of doubt from the mind of Assessing Officer. Taking into consideration totality of facts, we deem it appropriate to restore this issue back to the file of Assessing Officer in respect of 11 creditors mentioned in the grounds of appeal. The assessee is directed to furnish all necessary documents before the Assessing Officer to prove the genuineness and creditworthiness of the creditors. The Assessing Officer after affording opportunity of hearing to the assessee shall decide this issue, in accordance with law. It is made clear that the Assessing Officer shall not disturb the relief already granted by the First Appellate Authority in respect of addition u/s. 68 of the Act. Appeal of assessee is allowed for statistical purpose.
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