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2022 (4) TMI 1375 - AT - Income TaxAddition u/s 68 - assessee was selected for scrutiny under CASS for a limited category and one of the reasons for scrutiny was un-secured loans from the persons who have not filed the return of income - assessee had shown to have received loans from Shri Sachin Kumar, who is the Director of the company - HELD THAT:- It is very surprising that the Assessing Officer has made the addition under Section 68 of the Act only on the ground that sum has come in the account of the assessee in the next financial year and, therefore, this loan has been treated as non-genuine in this year which has been taxed under the deeming provisions of Section 68 of the Act. If the amount is credited in the bank account of the assessee in this year and has been shown as a loan in the books this year; and when the Assessing Officer is not doubting the identity, genuineness and creditworthiness of the transaction, then I do not find any reason as to why the addition under Section 68 of the Act can be made. Just because, the cheque has been cleared in the next financial year, it does not mean the amount credited in books when cheque was received on 31st March is unexplained income of this year. If Assessing Officer is treating that it is not the amount received during the year, ostensibly then the addition under Section 68 could not have been made in this year. Thus, no reason for making addition under Section 68 of the Act in this year when the assessee had shown to have received amount in its books on 31st March, 2015 and nothing has been questioned about the nature and source of the credit. Again it is reiterated that Identity, genuineness and creditworthiness for the loan received has not been doubted, albeit the credit appearing in books has been taxed just because amount credited in the bank account in the next financial year. Accordingly, the addition is deleted. Appeal of assessee allowed.
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