The Tax Publishers2019 TaxPub(DT) 5070 (Mum-Trib) : (2019) 177 ITD 0481 : (2019) 201 TTJ 0409

INCOME TAX ACT, 1961

Section 68

Assessee having furnished copies of the returns of lender companies their audited financial statements, bank statements of lender companies and 'affidavits' of principal officers thereof, had proved genuineness of the concerned transactions and identity and creditworthiness of lenders, therefore, loan amount could not be held as unexplained credit under section 68 when AO had not carried out independent verification consequent to receipt of information from investigation wing.

Income from undisclosed sources - Addition under section 68 - Creditworthiness and genuineness -

AO received information from investigation wing as to assessee having received accommodation entries in the guise of unsecured loan. Accordingly, AO taxed loan amount as unexplained credit under section 68.Held: Assessee having furnished copies of the returns of lender companies, their audited financial statements, bank statements of lender companies and 'affidavits' of principal officers thereof had proved genuineness of the concerned transactions and identity and creditworthiness of lenders, therefore, loan amount could not be held as unexplained credit under section 68 when AO had not carried out independent verification consequent to receipt of information from investigation wing.

Relied:ITO-9(1)-1 v. Anant Shelters (P) Ltd. [ITA Nos. 3584 & 4310 (MUM.) of 2007, dt. 30-3-2012) : 2012 TaxPub(DT) 2257 (Mum-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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