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2013 (10) TMI 553 - ITAT MUMBAIAddition u/s 68 - Creditworthiness of parties not proved - Held that:- assessee did not make any serious attempt to establish the creditworthiness of the creditors - Even the AR primarily dealt with the credits of a teacher and an agriculturist, who owned 3.63 acres of agricultural land, both living in villages - Credit given by other people are considered as not genuine - no details of family and income details were either filed before the revenue authorities - Assessee was not been able to substantiate as to how the creditor was able to save a sum of Rs. 50,000/-, from her teaching profession, which has been advanced as loan to the assessee - no details except for his cultivable land holding of 3.63 acres has been provided to substantiate agriculturist's savings to lend a loan of Rs. 60,000 - These vague details, are not good enough reasons to treat the impugned loans as genuine - Decided against assessee. Addition of Cash deposited in ledger account - Addition made u/s 68 - Under section 68, an addition can be made if the transaction is not genuine; the creditworthiness of the person, whose money is credited in the books is not established and where the identity of the creditor is not proved - There is a peculiar tangent to section 68, where, the director collected the sale proceeds and deposited them with the assessee company. So far, the revenue authorities have looked into, this aspect and fact, which is undisputed. But the fact, as to why the director collected and why the assessee company who had renounced its rights on the original agreement to undertake the sale of sub plots belonging to the trust, and why was the assessee company, through its director was still collecting payments on behalf of the trust, has not been looked into. The real motive and purpose has yet to be ascertained in the light of arguments of the AR - Matter restored back to A.O. - Decided in favour of assessee.
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