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2021 (7) TMI 78 - AT - Income TaxAddition u/s 68 - unexplained loan transactions - onus to prove - HELD THAT:- On being called upon to substantiate the genuineness and veracity of the aforesaid loan transactions, the assessee, in the course of the assessment proceedings filed supporting documentary evidence, viz. confirmation letters from the creditors; PAN of the creditors; bank statements of the creditors and the assessee; form nos. 16 qua TDS on interest; profit and loss account, balance sheet and returns of income of the creditors; and ledger accounts of the creditors. As the assessee had discharged the 'onus' that was cast upon it under Sec. 68 of the Act, therefore, the A.O without rebutting the genuineness of the said loan transactions in question on the basis of supporting documents was in no way justified in treating the loans received by the assessee from the aforementioned parties as unexplained cash credits under Sec. 68 of the Act. Accordingly, not finding favour with the view taken by the lower authorities, we herein set aside the order of the CIT(A) and vacate the addition. Disallowance of the interest expenditure - Claim of expense of the assessee was disallowed by the A.O, for the reason, that the loan transactions in question had been held by him to be bogus - HELD THAT:- Now, as we have concluded that the assessee had raised genuine loans from the aforementioned parties, therefore, the consequential disallowance by the A.O of the interest paid to the said lenders by treating the loan transactions as bogus shall stand vacated
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