| |
| The Tax Publishers2019 TaxPub(DT) 1377 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Though assessee had placed on record copies of bank accounts of respective lenders, however, neither any effort had been put in by assessee to establish beyond doubt creditworthiness of the said lenders, nor any such exercise had been embarked upon by AO, therefore, matter was remanded back to AO to readjudicate genuineness and veracity of impugned loan transactions after making necessary verification as regards creditworthiness of lending parties.
|
Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - Creditwortiness not proved
AO required assessee to explain unsecured loans received by it. Assessee placed on record copies of confirmation letters, bank accounts and the PAN numbers of respective lenders. AO being not satisfied with creditworthiness of the lenders, subjected loan amount to addition under section 68.Held: Though assessee had placed on record copies of bank accounts of respective lenders, however, neither any effort had been put in by assessee to establish beyond doubt creditworthiness of the said lenders, nor any such exercise had been embarked upon by AO, therefore, matter was remanded back to AO to readjudicate genuineness and veracity of impugned loan transactions after making necessary verification as regards creditworthiness of lending parties.
REFERRED : CIT v. Sugali Sugar Works (P) Ltd. (1999) 236 ITR 518 (SC) : 1999 TaxPub(DT) 1163 (SC), CCIT v. Kesari Tea Co. (P) Ltd. (2002) 254 ITR 434 (SC) : 2002 TaxPub(DT) 1293 (SC) and CIT v. Smt. Sita Devi Juneja (2010) 325 ITR 593 (P&H-HC) : 2010 TaxPub(DT) 1102 (P&H-HC).
FAVOUR : Matter remanded.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 37(1)
 SUBSCRIBE FOR FULL CONTENT
|