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Income Tax Officer, Business Ward-XI I (1) , Chennai Versus Mr. Rohit Maganlal Mehta

2015 (6) TMI 485 - ITAT CHENNAI

Addition under section 68 - CIT(A) deleted the addition - Held that:- As could be seen from the confirmation from the director of the lender company confirmed that lender has advanced loan of ₹ 50,00,000/- to the assessee through RTGS, out of which ₹ 25,00,000/- was repaid through demand draft by the assessee and they are assessed to income-tax department and PAN details were also provided. In the confirmation new address of the lender was also provided. The lender company also provi .....

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his confirmation letter was not placed before the lower authorities where the lender has given new address.

Therefore, subject to verification of the Assessing Officer, as to whether the lender is operating from the said address and this confirmation letter is given by one of the directors of the lender, we uphold the order of the CIT (Appeals) treating the loan transactions as genuine, the identity of the creditor is proved and creditworthiness of the assessee is established as the .....

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r 2010-11. The only grievance of the Revenue in its appeal is that Commissioner of Income Tax (Appeals) erred in deleting the addition made under section 68 of the Act. 2. Brief facts are that assessee filed return of income on 24.08.2011 admitting income of ₹ 1,13,420/-. Assessment in this case was completed under section 143(3) of the Act on 28.3.2013 determining the income of the assessee at ₹ 51,30,220/-. While completing the assessment, Assessing Officer made addition of ₹ .....

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M/s. Aditicon Services India Pvt.Ltd. is not functioning from the address provided by the assessee. In fact, inspector who visited the premises found that no such company was there at the address given. The Assessing Officer required the assessee to produce directors, but the assessee could not produce any of the directors of the lender company. Enquiries were also made before the Registrar of Companies and the ROC provided certificate of incorporation, memorandum of articles of association of t .....

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ough RTGS for purchase of property. The money was routed through banking channels. Both bank statements of the assessee and lender company were furnished before the Assessing Officer thus the transaction is genuine and identity of the creditor is proved. Since the transaction was routed through RTGS of the company, creditworthiness of the lender is proved and therefore submits that the said loan cannot be treated as unexplained credit of the assessee simply because lender is not filing returns. .....

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non-existent. Counsel for the assessee supports the order of the Commissioner of Income Tax(Appeals) in deleting the addition. 5. Heard both sides. Perused orders of lower authorities. In the course of assessment proceedings, at the time of hearing, assessee gave confirmation letters from creditors including M/s. Aditicon. Services India Pvt. Ltd and explained before the Assessing Officer that amount has been transferred through RTGS to assessee s bank account. Though the Assessing Officer requi .....

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see i.e. No.10, Renganathan Street, Triplicane, Chennai. The inspector noticed that no such company was functioning from the given address. The Assessing Officer also noticed that lender is not filing income-tax returns. It was also noticed that lender company is not filing annual returns before the Registrar of Companies. The Assessing Officer also required the assessee to produce Managing Director or any other Directors of the lender company. However, the assessee could not produce them before .....

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nder company were given to the Assessing Officer. The identity of the creditor was established. The Commissioner of Income Tax (Appeals) therefore held that addition was made merely for the reason that loan is not genuine because lender did not file its return with income-tax department or Registrar of Companies and the creditor not found in the address given and which matters were beyond the control of the assessee and the same cannot lead to the conclusion that loan is not genuine. The Commiss .....

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confirmation from the lender company stating as under:- Aditicon Services (India) Private Limited I, Mr. Santhana Kumar R, Director of Aditocon Services (India) Pvt.Ltd., have given a loan of ₹ 50 lakhs to Mr. M.Rohit Mehta on 06/05/2009 through TRGS Transfer from our Account with Axis Bank, T.Nagar, Chennai bearing Account no.014010200028875 to A/c. No.1281101032481 in Canara Bank, Mowbrays Road of Mr. M.Rohit Mehta. We confirm the above loan. Out of this loan ₹ 25 lakhs was repaid .....

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