2014 (12) TMI 638

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..... ns, from whom the assessee had borrowed funds - assessee is able to prove the creditworthiness of majority of lenders, but there is no material to prove the creditworthiness of the remaining persons - after considering the explanation submitted by various lenders enclosing the cash book indicating the date of lending, the AO allowed the claim in part - in respect of the persons who have not shown any material to prove the genuineness of the loan given, the AO declined to grant the benefit - – thus, the Tribunal is upholding the order of assessee is correct – the issues raised by assessee are pure questions of fact and does not raise any substantial question of law – Decided against assessee. - Tax Case (Appeal) No. 1002 of 2014 - - - Date .....

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..... for the assessment year in question declaring her income as ₹ 4,73,836/- and agricultural income at ₹ 5,99,400/-. On a perusal of the records, the Assessing Officer was of the view that the assessee had inflated the labour expenses and hence, added a sum of ₹ 1.00 lakh. The Assessing Officer also found that the assessee had shown in her balance sheet unsecured loans from friends and relatives to the tune of ₹ 11,76,342/-. The loans were ranging between ₹ 15,000/- to ₹ 19,000/-. Hence, the assessee was asked to submit the list of loan creditors along with the addresses. The parties from whom loans were taken had submitted confirmation letters stating that the loan has been given for business purposes. Th .....

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..... r charges in cash and the assessee had not produced any vouchers to prove the genuineness of the expenditure claimed. Hence, the Assessing Officer made addition of ₹ 1.00 lakh out of ₹ 17,28,696/- claimed by the assessee. It is seen from the assessment order that the assessee had also accepted the same at the time of assessment. Hence, the Tribunal is correct in confirming the addition made by the Assessing Officer. 6. With regard to the addition made under Section 68 of the Income Tax Act in respect of unsecured loans, it is seen from the order of the Assessing Officer that the assessee had proved the creditworthiness of majority of lenders except 19 persons, from whom the assessee had borrowed funds. The Assessing Officer a .....

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