Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 133 - ITAT MUMBAIAddition u/s 68 - amount of unsecured loans taken during the year - creditworthiness of the lenders were not established whereas the lenders have duly accepted the notices under Section 133(6) - Held that:- Out of the total lenders 16 were from Ghatkopar but CIT(A) doubted the trasactions on this basis also. Moreover, opening of account in one bank could not be a basis for doubting the transactions. Revenue authorities have not disputed the interest paid during the year which is duly paid/discharged by the assessee after deducting tax at source. It is very surprising and strange that the Revenue has accepted interest on loan but the genuineness was doubted which appears to be fallacious and wrong. The case of the assessee is supported by case of CIT vs. Orissa Corporation Pvt. Ltd.[1986 (3) TMI 3 - SUPREME COURT] wherein held that where the assessee has given names and addresses of the alleged creditors and the said creditors were in the knowledge of the Revenue authorities to be income tax assessees and their index numbers were in the file of Revenue, the Revenue did not pursue the matter further apart from issuing notices under Section 131 of the Act. Revenue did not examine the source of income of the said alleged creditors to find out whether they were creditworthy or were such who could advance the alleged loans. Thus there was no effort made to pursue the so called alleged creditors. The Court further held that if Tribunal came to the conclusion that the assessee has discharged the burden they lay on him, then it could not be said that such a conclusion was unreasonable or perverse or based on no evidence. Thus set aside the order of the CIT(A) by holding that the assessee has duly discharged the its onus by filing the necessary evidences before the authorities below and therefore addition by the AO u/s 68 of the Act is ordered to be deleted. The appeal of the assessee is allowed.
|