Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 913 - AT - Income TaxUnsecured loan treated as cash credit - unsecured loans received by the assessee from two brothers - HELD THAT:- One Lenders had attended before the AO and admitted that he himself as well as his brother had given loan to the assessee firm. Thus, this admission clearly establishes the genuineness of transaction and further that the assessee has fully discharged the burden of establishing the genuineness of loan transaction by both the parties. Moreover, both these persons are regularly assessed to income- tax and they have their independent source of income.. Thus, we note that both the Lenders are assessed to tax and the loan is taken through banking channel by RTGS and there is a categorical admission of loan being given to the assessee firm out of own funds and through banking channel and the same has been accepted by the AO also. The assessee need not prove the “source of source”. Once the existence of the person is proved and on the basis of relevant evidences it is proved that credit entry is not fake, the primary onus cast on the assessee is discharged and that assessee in such cases cannot be expected to prove the source of source. Thus, we note that assessing officer has failed to bring even an iota of evidence on record which indicates that loans received from above party actually emanated from the coffers of assessee. In the assessee`s case under consideration, there is no finding that any details, documents and evidences supplied by the assessee to the AO were found to be incorrect or erroneous or false. As such addition cannot be made u/s 68 of the Act. Hence we are not inclined to accept the contention of the Assessing Officer in any manner and hence the addition of ₹ 10,00,000/- so made is deleted. Hence this ground of the assessee is allowed.
|