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2022 (11) TMI 7 - AT - Income TaxUnexplained credit u/s 68 - unsecured loans received by the assessee - HELD THAT:- DR only submitted that the lender company did not return any income for the last four years which means that there was no activity going on and that even the inspector did not find sign board of the lender company at the given address. However, the above submissions of the ld. DR have been proved to be without merits. As noted above, not only the lender company responded to the notices issued u/s 133 of the Act but also the director of the said company appeared in response to notice u/s 131 of the Act, even the inspector also met the director cum employee of the lender company at the given address. The assessee has duly proved not only the identity, creditworthiness of the lender company but also the genuineness of the transaction by way of demonstrating about the running account of the assessee with the said company and that the total loan liability of the assessee company during the year being decreased. We do not find justification on the part of the lower authorities in making the impugned additions and the same are accordingly ordered to be deleted. Appeal of the assessee stands allowed.
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