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2021 (9) TMI 1018 - AT - Income TaxUnexplained cash credit - unsecured loan u/s 68 - HELD THAT:- The companies being Pvt. Ltd. Company have all the details of their identity including address and financial data’s on the portal of Ministry of Corporate Affairs available for the public. The assessee has also filed copies of bank invoices and the income tax return to prove the source. Prima facie in our view the assessee discharged its onus to prove the source of alleged cash credits before AO. Thereafter the burden shifts on to the revenue authorities to disprove such documents or to find any discrepancy in such documents, which has not been found by the revenue authorities in the instant appeal. PAN No. of the alleged cash creditors was very much available with AO. No reports seem to have been called from the counterpart Ld. Assessing Officer having jurisdiction over the alleged cash creditors. The assessee has limited means to call for elaborate information required by AO. Looking to the list of documents filed by the assessee to explain the cash credit we find that nothing more could have been possible for assessee to explain the identity and creditworthiness of the cash creditors and genuineness of the transactions. Thus the assessee has successfully discharged its onus by explaining source of cash credit of loan of ₹ 2.70 cr. received during the year by placing relevant documentary evidences to our satisfaction which have not been found to be untrue/incorrect by the revenue authorities. We, thus set aside the finding of Ld. CIT(A) and delete the addition of ₹ 2.70 cr. made u/s 68 - Decided in favour of assessee. Disallowance of prior period interest - loan from HDFC bank was taken in the name of one of the partner - Interest payable on this loan from HDFC Bank was claimed as a business expenditure by the assessee as the loan was utilized for business purposes - HELD THAT:- CIT(A) has not doubted the utilization of loan for the business purpose. Ld. DR failed to controvert this fact that the loan taken from HDFC bank has been utilized for any other purpose other than for business of the firm. Audited balance sheet supports the contention made by the assessee and also there is no difference in the ultimate tax liability as it was subject to tax on the same rate in the preceding years as in the current year. Our view is supported by the judgment in the case of GLAXO SMITHKLINE ASIA (P) LTD. [2010 (10) TMI 21 - SUPREME COURT] - we are of the considered view that the claim of prior period interest needs to be allowed - Decided in favour of assessee.
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