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2020 (12) TMI 629 - AT - Income TaxAddition u/s 68 - bogus loan received from a dummy company - notices have also come back unserved and the report of the Inspector proved non-existence of the lender company at the premises - HELD THAT:- AO held that the assessee company is neither having any stock nor fixed assets and suspected that the company to be of a non-viable entity. AO has also suspected the lender company also as a dummy company but without bringing anything tangible on record to prove both or either of the allegations. As decided in M/S. HIMACHAL FIBERS LTD. [2018 (8) TMI 873 - SC ORDER] in a case where the assessee has furnished all relevant facts within his knowledge and has offered a credible explanation, then the onus reverts to the revenue to prove that these facts are not correct. In such a case, the revenue cannot draw the inference based upon suspicion or doubt or perception of culpability or on the quantum of the amount involved particularly when the question is one of taxation under the deeming provision. It was further held that neither doubt/suspicion nor the quantum shall determine the exercise of jurisdiction by the AO. Thus, going through the entire factum of the case, we hold that the addition made by the AO on account of unsecured loan ould not pass the factual and judicial proprietary. Hence, the addition made by the AO is directed to be deleted.- Decided in favour of assessee.
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