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2022 (3) TMI 210 - ITAT KOLKATAAddition u/s 68 - loan received from seven individuals - HELD THAT:- Assessee has discharged the burden on him to prove the identity, creditworthiness and genuineness of the loan transaction. And it is noted that the AO has not been able to controvert the material placed before him by finding any infirmity in it. Thus it is noted that the AO has drawn adverse inference against the assessee without any basis and it was only on the basis of surmises and conjectures. Other than alleging that there was deposit of cash before the cheque was given to the assessee as loan, it is noted that the AO has not taken one step ahead from that observation. When the AO noticed that there was deposit of cash just before the cheque was given to the assessee as loan, then that should have been the triggering point to enquire into the genuinety of the claim; and he should have enquired from these lenders about the purported deposit of cash in their accounts before lending money to assessee. However, no such enquiry has been made by the AO to draw adverse inference against this loan transaction. Moreover, it is noted that the AO on same breath has given a finding of fact that these seven creditors had enough cash in hand as on 31.03.2012 - no addition u/s. 68 of the Act was warranted . Therefore, the addition and the interest payment is directed to be deleted.
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