9911796707
TMI Blog2016 (2) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced a loan of ₹ 1.40 crore free of any interest. It is in these circumstances and upon a thorough analysis of the bank accounts of the six lenders that the CIT(A) came to the conclusion that their creditworthiness was not established. The question was not one of demonstrating the sources of the income of the lenders as much as establishing their financial capacity to advance the sums in question to the Assessee. - Decided against assessee - ITA No. 79/2016 - - - Dated:- 17-2-2016 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellant : Mr. Ajay Vohra, Senior Adv. with Ms. Kavita Jha and Mr. Vaibhav Kulkarni, Advs For the Respondent : Mr. Ashok K. Manchanda, Senior Standing Counsel with Mr. Vibhooti Malhotra, Junior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gupta 35,00,000/- 2. Gauri Gupta 27,25,000/- 3. Navneet Gupta, HUF 5,75,000/- 4. Cactus Menswear Fashion Pvt. Ltd. 20,00,000/- 5. Nirvana India Pvt. Ltd. 1,40,00,000/- 6. Parul Gupta 12,00,000/- Total 2,40,00,000/- 4. Aggrieved by the above order, the Assessee approached the CIT(A) and filed, in respect of the above six parties, the ledger accounts of the parties in the books of the Assessee, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be sufficient justification for the huge amount of loan given by these parties, which was several times their annual income. b. The bank account of Sonali Gupta showed that immediately prior to the giving of the loan to the Assessee, there was a deposit of ₹ 35 lakh in her bank account. c. In the bank account of Gauri Gupta there were large deposits on 27th March, 2006 and 24th April, 2006, following which there was a loan of ₹ 27,25,000/- given to the Assessee. Further the ITR did not specify the nature of the income and the creditworthiness of the party could not be established. d. The bank account of Navneet Gupta also showed that immediately preceding the advancing of the loan to the Assessee large amounts had b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... history of the litigation and the findings of the AO and CIT(A) to conclude that the Assessee had not discharged the onus of establishing the credit worthiness of the above six parties. 10. Mr. Ajay Vohra, learned Senior Advocate, appearing for the Assessee made an earnest attempt to demonstrate that the CIT(A) had committed an error of law in failing to appreciate that the Assessee had discharged its onus of proving the creditworthiness of the six lending parties once it produced the bank statements, ITRs and wherever applicable the balance sheet and the Profit Loss accounts of the lending parties. Referring to the decision in Commissioner of Income Tax v. Divine Leasing Finance Ltd. (2008) 299 ITR 268 (Delhi) (the Special Leave Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he creditworthiness of the six lenders. For instance, at least three of the lenders were not paid any interest. Compared to the income disclosed in the returns, the amounts advanced as loan to the Assessee were disproportionately large. In particular one of the parties advanced a loan of ₹ 1.40 crore free of any interest. It is in these circumstances and upon a thorough analysis of the bank accounts of the six lenders that the CIT(A) came to the conclusion that their creditworthiness was not established. The question was not one of demonstrating the sources of the income of the lenders as much as establishing their financial capacity to advance the sums in question to the Assessee. 12. No substantial question of law arises. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
