TMI Blog2018 (2) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... e capacity of the lender and the factum of lending all have been established. Addition u/s 68 there could not have been made. However, as noted, the Tribunal has minutely examined the position of the lenders, the circumstances under which, the amounts were allegedly loaned to come to the conclusion that the transactions were not genuine. - Decided against assessee. - Tax Appeal No. 1037 of 2017 - - - Dated:- 12-2-2018 - MR. AKIL KURESHI AND MR. B. N. KARIA, JJ. For The Appellant : Mr Sudhir M Mehta, Advocate For The Appellant : Ms Shailee S Mehta, Advocate ORAL ORDER ( PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Appeal is filed by the assessee challenging the judgment of the Income Tax Appellate Tribunal d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame bank account, these are debit and credit transactions of around ₹ 15 lakhs each and the balance as on the end of that date is ₹ 8,737. On 18th and 19th August 2006, again there are quite a few transactions aggregating to ₹ 10 lakhs on debit as also credit side, and yet again closing balance is ₹ 7,578. On 22nd August 2006, there are transactions of debits and credits of around ₹ 32.50 lakhs each, and the closing balance at the end of the day is again ₹ 7,578. As can be seen from this statement, on 29th August 2006, there are debit and credit transactions of ₹ 15 lakhs each and once again the closing balance of the day is ₹ 7,578. This kind of the state of bank account does not inspire any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or example, the opening balance is ₹ 1,36,611 and there are huge debits and credit entries on 23rd and 24th March, aggregating to almost ₹ 4 crores on debit as also credit, and the closing balance at the end of 24th March is ₹ 85,991. On a turnover of ₹ 127.87 crores, the profit is less than 0.09% resulting in tax outgo of ₹ 2,96,218. To effect this scale of operations, the lender incurs no travelling or telephone expense, and entire expenses of the business, except on brokerage and assortment of diamonds, are less than ₹ 5 lakhs in the year. Interestingly, in today's world where an average human being, much less a business organization, can live without telephones, this business entity has prospered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appreciation of evidence on record and thus factual in nature. The Tribunal has given elaborate reasons to come to the conclusion that the entire transaction was not genuine. In absence of any perversity, we do not see any reason to interfere. 4. Learned counsel for the assessee however vehemently contended that the assessee had received loans through cheques from lenders who had confirmed the same. Their accounts are audited and filed before the Revenue authorities. Thus, the genuineness of the transactions, the capacity of the lender and the factum of lending all have been established. Addition under section 68 of the Act there could not have been made. However, as noted, the Tribunal has minutely examined the position of the lenders, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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