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2024 (1) TMI 267 - ITAT KOLKATAAddition u/s 68 - unsecured loan treated as unexplained cash credit - CIT(A) deleted addition - HELD THAT:- CIT(A) has noted that on perusal of the audited balance sheet of the assessee company, it was found that the said unsecured loans have been reported under short-term capital borrowings in item no.7 of the said balance sheet. That the director of the assessee company was duly confronted about the loan transaction, but nothing adverse could be extracted from him by the Assessing Officer. CIT(A) has also noted that during the appellate proceedings, the assessee had produced evidences of repayment of the loan amounts, whereupon, the remand report was called upon from the AO and the AO in the remand report duly confirmed the repayment of the loan amount through banking channel. CIT(A) has also discussed the financials of the creditors to hold that the creditors had sufficient net worth to give loans to the assessee company. It has also been noticed by the CIT(A) that apart from the aforesaid three borrowers, the assessee has also taken loans from other parties which has not been doubted by the AO. CIT(A) thereafter held that the sole basis of the Assessing Officer to make addition was on the basis of an earlier recorded statement of Shri Devesh Upadhyaya, which was neither recorded in the presence of the assessee nor the assessee was every confronted about the same. Even no incriminating material was found during the course of search action. Even all the creditors have duly confirmed the transactions and also established the source of the credits and the loan being also repaid in a short span of time. CIT(A), therefore, has rightly held that the addition made by the AO was not justified. No reason to interfere with the order of the ld. CIT(A) and there is no merit in the appeal of the revenue and the same is accordingly dismissed. Appeal of the revenue stands dismissed.
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