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2023 (11) TMI 641 - ITAT INDOREAddition of loan given by assessee - assessee submitted that she made a cash-deposit in her Bank and thereafter out of the balance held in Bank A/c the said loan was given - whether assessee explained claim of redeposit out of previous withdrawal - HELD THAT:- There is no dispute on the fact that the AO has made addition qua the ‘loan given’ by assessee and not ‘loan taken’ by assessee. We agree that under the scheme of Income-tax act and it is logical also, there can be an addition for bogus ‘loan/accommodation taken’ by a person but certainly there cannot be any addition for bogus ‘loan/accommodation given’. If the loan given by “X” to “Y” is found bogus/accommodation, the department can make addition in the hands of “Y” but certainly not in the hands of “X”. In fact, Ld. DR also understood this basic point and that is why he simply supported the AO’s order and left it for the Bench to take a call. As far as the source of cash-deposit in bank a/c, prior to giving loan, is concerned, Ld. AR has successfully demonstrated that the assessee made a withdrawal of enough amount from same bank a/c which was available for re-deposit. Thus, we need not go further to examine the genuineness or otherwise of the loan given by assessee, suffice it to say that the AO has wrongly made addition given by assessee in assessee’s hands. We, therefore, direct the AO to delete the addition. Decided in favour of assessee.
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