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2022 (7) TMI 993 - AT - Income TaxAddition u/s 68 - Assessee failed to prove the identity, credit worthiness of the creditors and genuineness of the transaction of receiving loan - HELD THAT:- So far as the loan taken by Mr. Ram Mohan alias A. R. Arinaya though the loan is in the name Mr. Ram Mohan @ A.R.Arinaya, the funds have come from Smt. Lalitha, mother of Mr.Rammohan @ A.R.Arinaya. Smt. Lalitha has filed her return of income for AY 2016-17 declaring a total income - CIT(A) has however held that creditworthiness has not been proved. This finding of the CIT(A) is incorrect in the light of the fact that Smt. Lalitha is an income tax assessee having reasonable quantum of income. Mr. Ram Mohan alias A. R. Arinaya has also filed return of income for Assessment Year 2016-17 declaring a total income - In these circumstances, credit to the extent of Rs.10 lakhs in the name of Mr. Ram Mohan is duly explained and the said addition is deleted. Addition made in respect of loans by Mr. Ajit Hebbar and Ms. Mridula Hebbar - The evidence on record shows their sources are reflected in the form of their bank accounts indicating sufficient funds and there are no circumstances indicating that the funds in their bank accounts is assessee’s money. The assessee has thus established the source of the creditors. As pointed out for the assessee, the PAN and the addresses of the creditors was very much available with the AO and he did not choose to issue any summons calling upon them to prove their source or any other explanation. In these circumstances, as assessee has duly discharged his onus all satisfactorily the credits in question under section 68 of the Act. Consequently, the aforesaid addition being credits from Mr. Ajit Hebbar and Ms. Mridula Hebbar are also deleted. We find support from the decision of Orissa Development Corporation Pvt. Ltd., (s1986 (3) TMI 3 - SUPREME COURT]. Disallowance of depreciation - AO disallowed the claim of the assessee for depreciation on the ground that the assessee did not file any evidence to substantiate the claim for depreciation - HELD THAT:- As the assessee has established that it is entitled to claim depreciation. The depreciation in our view has to be allowed as claimed by the assessee.
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