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2015 (4) TMI 826 - GUJARAT HIGH COURT

2015 (4) TMI 826 - GUJARAT HIGH COURT - TMI - Addition under Section 68 - interest eligibly paid on the said loans - ITAT deleted the additions - Held that:- From the assessment order, it appears that the Assessing Officer made the addition of ₹ 33,50,000/- under Section 68 by doubting the genuineness of the transactions and creditworthiness of the depositors. It appears that the Assessing Officer made the addition solely on the ground that though number of opportunities were given, the as .....

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inquiry with respect to those seven depositors whose identity was disclosed and even PAN numbers of those seven depositors were also before the Assessing Officer. Under the circumstances and in the facts and circumstances of the case, it cannot be said that the learned CIT(A) as well as the learned ITAT have committed any error in deleting the addition made under Section 68 of the Act and deleting the disallowance of interest paid to various depositors. - Decided in favour of assessee. - TAX APP .....

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owing proposed substantial questions of law; (A) Whether the Appellate Tribunal has substantially erred in deleting the addition made under Section 68 of the Act as also interest eligibly paid on the said loans? (B) Whether the Appellate Tribunal has correctly appreciated in records while deleting the aforesaid addition made under Section 68 of the Act? (C) Whether the Appellate Tribunal is right in law and on facts in ignoring the fact that there are cash deposits in the bank account of the dep .....

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assessee filed the return of income for the Assessment Year 2009-10 on 01/09/2009 declaring the total taxable income of ₹ 5,12,950/-. The assessment came to be completed on 15/12/2011 on total income of ₹ 40,50,710/- after making the following additions; (i) Addition of unsecured loans under Section 68 of the Act Rs.33,50,000/- (ii) Disallowance of interest paid to various depositors ₹ 1,87,763/- (2.2) It appears that while making the addition of unsecured loans under Section .....

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gwith their PAN numbers etc. However, the assessee did not produce those seven depositors before the Assessing Officer and, therefore, the Assessing Officer doubted the identity, creditworthiness and genuineness of the transactions with respect to the aforesaid seven depositors and, therefore, made the addition under Section 68 of the Act i.e. ₹ 33,50,000/-. The Assessing Officer therefore disallowed the interest paid to the aforesaid seven persons i.e. ₹ 1,87,763/-. (2.3) Feeling ag .....

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disallowance of interest paid to various depositors by observing that as such the assessee had discharged the initial burden to prove the identity, creditworthiness and genuineness of the depositors. While allowing the appeal, the learned CIT(A) also relied upon the appellate order for the Assessment Year 2008-09 in the case of one M/s. Mukeshkumar & Co. vide Appeal No.CIT(A)XVI/ITO/Wd/11(4)/580/10-11 dated 14/10/2011. (2.4) Feeling aggrieved and dissatisfied with the order passed by the lea .....

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the present Tax Appeal requesting to consider the aforesaid proposed substantial questions of law. (3.0) Shri Manish Bhatt, learned Counsel appearing on behalf of the revenue has vehemently submitted that the learned ITAT has materially erred in confirming the order passed by the learned CIT(A) deleting the additions made by the Assessing Officer made under Section 68 of the Act and also deleting the disallowance of interest paid to various depositors. (3.1) It is submitted that when the Assessi .....

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itions made by the Assessing Officer under Section 68 of the Act and also deleting the disallowance of interest paid to various depositors. (4.0) We have heard Shri Manish Bhatt, learned Counsel appearing on behalf of the appellant-revenue at length. It emerges from the record and the impugned orders that the learned CIT(A) as well as the learned ITAT have deleted the additions made by the Assessing Officer under Section 68 of the Act i.e. ₹ 33,50,000/- and also deleted the disallowance of .....

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