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| The Tax Publishers2019 TaxPub(DT) 1137 (Del-Trib) INCOME TAX ACT, 1961
Section 68
To the extent assessee had duly proved identity and creditworthiness of lenders and genuineness of unsecured loan received by it, addition under section 68 was to be deleted.
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Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - Assessee partly proved identity and creditworthiness of lenders
AO treated unsecured loan amount received by assessee-company as unexplained and made addition under section 68 on the ground that lenders were having very low average bank balances and before issuing cheque, cash deposits were made in their bank accounts.Held: Assessee had furnished evidences such as copies of bank statements, ITR and audited balance-sheet of lenders to prove identity and creditworthiness of lenders and genuineness of loan amount received. However, in case of one 'K', it was not in dispute that prior to giving loan to assessee there were cash deposits of equivalent amount of credit in her bank account. There was insufficient bank balance in her account for giving loan to assessee. Therefore, addition on account of unexplained credit in case of 'K' was sustained.
Relied:Smt. Suman Gupta v. ITO (2012) 138 ITD 153 (Agra-Trib) : 2012 Tax Pub (DT) 2818 (Agra-Trib) and Blessing Construction v. ITO [Tax Appeal No. 16 of 2013, dt. 13-3-2013] : 2013 TaxPub(DT) 1442 (Guj-HC).
REFERRED :
FAVOUR : Partly in assessee's favour.
A.Y. : 2011-12
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