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TMI Blog2018 (3) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 69A cannot be made. Therefore, the decision of the learned Commissioner (Appeals) has to be sustained. In the facts of the present case, there is no doubt with regard to recording of repayment of loan in the books of account and the source of such fund. What the Assessing Officer has doubted to disallow the repayment is the genuineness of unsecured loans received by the assessee in the earlier assessment years. - Decided against revenue - ITA no.2292/Mum./2016 - - - Dated:- 23-2-2018 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For The Revenue : Ms. Pooja Swaroop For The Assessee : Shri Ketan Panchmia ORDER PER SAKTIJIT DEY, J.M. Captioned appeal at the instance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As observed by the Assessing Officer, in response to notice issued under section 133(6), the concerned persons filed their replies in Department. Out of the persons to whom summons were issued two persons appeared and statements were recorded from them. After examining the witnesses the Assessing Officer accepted the loan taken from Kiran A. Shah to be genuine. However, as far as unsecured loans advanced by other creditors, the Assessing Officer upon verifying the return of income filed by them for assessment year 2011 12, doubted their creditworthiness. Accordingly, he held that the unsecured loans claimed to have been received by the assessee from the concerned persons are not genuine. He observed that the assessee was introducing his u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act will not apply to the facts of the assessee s case. The learned Commissioner (Appeals) observed, when the identity of the creditors have been established and the entire loan transaction was done through regular banking channel, addition under section 69A of the Act in the impugned assessment year cannot be made. Accordingly, he deleted the addition. 4. Learned Departmental Representative submitted, when the source of loan is not proved and repayment of loan is doubtful, the Assessing Officer can invoke the provisions of section 69A of the Act. In support of her contention, the learned Departmental Representative relied upon the decision of the Hon'ble Supreme Court in CIT v/s K. Chinnathamban, [2007] 162 taxman 459 (SC). 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons actually appeared before the Assessing Officer and were examined. The Assessing Officer accepted the unsecured loan taken from one such person to be genuine while holding the loans taken from other persons to be non genuine doubting the creditworthiness of the concerned parties on the basis of income declared by them in the impugned assessment year. Thus, as could be seen from the facts on record, the existence of the creditors have been established. Moreover, when the unsecured loans were not taken in the impugned assessment year but were taken in earlier assessment years wherein the genuineness of such loans were never questioned, it cannot be questioned in the impugned assessment year. Therefore, the only thing which requires to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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