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2020 (12) TMI 859 - AT - Income TaxUnverifiable purchases - HELD THAT:- There was nothing of documents, were found from the possession of the assessee even during the course of search and seizure operation. PR has also placed reliance on some other judicial decisions, but the facts are totally different from the facts of the case in hand. As mentioned elsewhere, total estimated value of the project for the year under consideration is more than ₹ 300 crores, therefore it would be a futile exercise to doubt the genuineness of a meager amount of ₹ 7.86 crores. Moreover, as mentioned elsewhere, the purchases were duly supported by bills and vouchers. The payment have been made through account payee cheques. The payments are reflected in the bank statement of the payer and the payee. We, therefore, do not find any reason for doubting the genuineness of these purchases. While restricting the disallowance the reasoning given by the first appellate authority is not only absurd, but illogical. Addition u/s 68 - HELD THAT:- Since the loans were found credited in the books of accounts of the appellant, in the light of the provisions of section 68 it was incumbent upon the assessee to discharge the initial burden in proving the identity, genuineness and creditworthiness of the lender, which in our opinion the assessee has grossly failed to discharge. Once the assessee fails to discharge the initial burden cast upon it, the provisions of section 68 become imperative. The FAA has been carried away with the fact that the same amount has been added in the group concerns which was not at all relevant on the facts of the present case.
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