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2018 (12) TMI 1129 - AT - Income TaxAddition of unsecured loan and being the interest thereon - Held that:- In this case, the loan creditor has even shown the source of the loan disbursed to the assessee (from funds it received from M/s. Godavari Exim Pvt. Ltd. as discussed) and we note that the AO has not made any exercise to discredit the loan creditor in any manner other than making certain general observations of the accommodation entry providers which cannot be the legal basis for disbelieving the loan the assessee received from M/s. Pasupati Tradelink Pvt. Ltd. and which amount the assessee has repaid as is evident from the correspondence between the assessee and the AO of the lender company as discussed above. The assessee has discharged the onus by placing all the documents before the AO/Ld. CIT(A) as discussed above. CIT(A) erred in not giving credence to the aforesaid documents filed before him without any adverse material to substantiate his stand. Hence, we are inclined to delete the addition of ₹ 40 lakhs which the assessee has taken as loan as well as the interest which the assessee has given to the lender of ₹ 4,22,531/-. The additional disallowance u/s. 37(1)is also deleted. - decided in favour of assessee.
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