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2024 (3) TMI 146 - ITAT INDOREUnexplained cash credit u/s 68 - unsecured loan - HELD THAT:- It is not a case where there is any cash deposit in lender’s bank a/c before giving loan to assessee. Thus, the source or creditworthiness of lender qua the giving of loan to assessee is proved. The A/c Confirmation, which is basically in the form of a certificate of lender, also makes a clear confirmation of giving loan to assessee as well as receipt of repayment subsequently from assessee. So far as the point raised by CIT(A) that the repayment has been made via cross- cheque and not a/c payee cheque, the assessee has filed complete bank statement showing debit entries of payments which have a clear mention of the repayment having gone to “Reshma Qureshi”, lender. Therefore, any doubtful apprehension by CIT(A) in this regard is dislodged. Thus, taking into account entire conspectus, we are of the view that the assessee has filed sufficient evidences to prove the creditworthiness of loan; therefore the addition made by AO should not stand. We, accordingly, delete the same and allow this ground of appeal. Unexplained cash credit u/s 68 - AO was not satisfied with creditworthiness of the lender and made addition - HELD THAT:- We find that Shri Ajay Gupta was having a pre-existing deposit with M/s Unitrade & Service and by making recoveries therefrom, made loans to assessee. Thus, there should be any doubt so far the availability of funds with the lender Shri Ajay Gupta is concerned. Ld. CIT(A) has made an observation that the assessee has taken loan from M/s Unitrade & Service but as can be seen the correct position is different. It is true that funds have originated from M/s Unitrade & Service but Ld. AR has shown by reference to documents in Paper-Book that Shri Ajay Gupta made a recovery from M/s Unitrade & Service for giving loans to assessee. We do not find any weakness in this explanation of assessee which is fully supported by documents. Consequently, we are satisfied that Shri Ajay Gupta has made loans to assessee from funds available with him and there is no reason to treat the loans taken by assessee as unexplained. Disallowance of Charity & Donation Exp - assessee submitted that impugned donations are in the nature of contributions given to various organisations which helped in advertising business of assessee, therefore they are very much in the nature of business expenditure and must be allowed - HELD THAT:- On a careful consideration, we agree with the submissions of Ld. DR and do not find any weightage in the argument of Ld. AR which is just a submission for the sake of submission. There is no evidence to show that the impugned donations helped the assessee in advertising business. Therefore, we uphold the disallowance made by AO. This ground is accordingly dismissed.
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