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2018 (2) TMI 256 - AT - Income TaxAddition in respect of unsecured loans under Section 68 - Held that:- Once the assessee discharges its initial onus of identity, genuineness of transaction and creditworthiness then the AO is precluded from going to question the source in view of the decision of the Hon'ble Supreme Court in the case of CIT vs. Lovely Exports (2008 (1) TMI 575 - SUPREME COURT OF INDIA) wherein it was held that the names and address of the persons from whom the loan were taken have been furnished to the AO, then the AO is free to reopen the individual assessment in accordance with law but the additions cannot be regarded as undisclosed income u/s 68 of the Act. Cessation of liability - Held that:- The issues need to be re-examined by the AO in the light of the additional evidences filed by the assessee. Hence, we set aside the issue of disallowance of interest expenses, disallowance of consultancy expenses, disallowance of deduction claimed under Section 80C/80D, disallowance of addition based on loose papers, deletion of addition made by the AO towards unproved sundry creditors under Section 41(1)(a), deletion of addition made towards unsecured loans under Section 68 of the Act, deletion of unexplained credit card expenses under Section 69C, deletion of unexplained jewellery and deletion of unexplained purchase of Ipod. The AO is directed to reconsider the issues in the light of the additional evidences filed by the assessee after affording reasonable opportunity of hearing.
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