INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - Assessee furnished supportive details

AO treated loan amount received by assessee as unexplained credit under section 68 on the ground that there were no sufficient evidences to prove the case of assessee. It was the case of assessee that all the details with regard to loans were furnished before AO. Held: In balance sheet of assessee credit balance of lenders had been shown at Rs. 49 lacs and Rs. 13 lacs and details of accounts along with confirmation, addresses and PAN of lenders were furnished before AO for verification. Even assessee had furnished copy of assessment orders passed in case of lender for the relevant year for verification. Apart from that, funds had been received by assessee through banking channel, and therefore, all the ingredients necessary for proving cash credit under section 68 stood satisfied by assessee. Therefore, AO was not justified in making addition under section 68.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2004-05.

INCOME TAX ACT, 1961

Section 57(iii)

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