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2010 (8) TMI 62 - HC - Income TaxLoans - addition u/s 68 - department contended that either the books of accounts or principal officers or Directors of those persons who had given credit entries were not produced - Consequently, the creditworthiness of the parties and genuineness of the transactions were not proved - Held that - parties are having PAN numbers and assessed under Income tax - assessee also produced confirmation letters - transactions are reflected in the accounts and balance sheets - no addition can be made u/s 68 - order of CIT(A) and ITAT maintained.
Issues:
Challenge to the order of the Income Tax Appellate Tribunal (ITA) regarding addition of loans advanced to the assessee by two parties under Section 68 of the Income Tax Act, 1961. Analysis: The appeal was filed challenging the ITA order adding loans of Rs. 51.50 lacs advanced to the assessee by two parties. The Revenue contended that under Section 68 of the Act, the burden of proving the source of money lies on the assessee. The Revenue argued that the assessee failed to produce books of accounts or details of the parties providing credit entries, leading to unproven creditworthiness and genuineness of the transactions. Upon review, it was found that the addition was deleted by the Commissioner of Income Tax (Appeals) and the Tribunal. The Tribunal noted that the creditors had submitted their bank accounts and PAN details. The Tribunal observed that the assessee had provided confirmation letters, PAN details, and cheques, and the CIT(A) had verified the assessment records. The CIT(A) confirmed that the amounts were reflected in the bank accounts and balance sheets of the paying companies. As no evidence was presented to challenge these findings, the Tribunal upheld the CIT(A)'s decision, stating that it was fair and reasonable. The Court, based on the factual findings by the final authority, concluded that no substantial question of law arose in the case and that the decision was fair and reasonable. Consequently, the appeal was dismissed in limine.
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