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TMI Blog2019 (3) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... s given under oath by the lenders have not been proved to be false by the Assessing Officer. Merely because in the bank account of the lenders there are cash deposits prior to issuance of cheque to the assessee and further the income returned by the lenders are not substantial, it cannot be presumed that the lenders did not have the creditworthiness to advance the loans to the assessee. The assessee has filed the balance sheet of the creditors to demonstrate availability of fund. Further, the lenders are income tax assessees and filing their return of income regularly. The loan transactions have also been reflected in their return of income for the concerned assessment year. Nothing has been brought to our notice by the Department to ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a reseller of fabrics through his proprietary concern M/s. Maharashtra Textiles. For the assessment year under dispute, the assessee filed his return of income on 24th September 2012, declaring total income of ₹ 2,63,667. During the assessment proceedings, the Assessing Officer noticing that the assessee has shown unsecured loan of ₹ 5 lakh each from two individuals called upon the assessee to furnish the necessary details of the lenders such as copies of income tax returns, PAN details and bank statement copies. After perusing the documentary evidences filed by the assessee, the Assessing Officer observed that though the lenders have advanced the loans through cheques, however, prior to issuance of cheque to the assessee cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the lenders, but, the lenders were also produced before the Assessing Officer. He submitted, in course of examination by the Assessing Officer, the lenders have categorically admitted of having advanced the loans to the assessee. He submitted, both the lenders are income tax assessees filing their return of income regularly. He submitted, the balance sheet of the lenders was also filed before the Assessing Officer wherein availability of fund to advance the loan to the assessee was demonstrated. He submitted, the assessee has regularly paid interest on loan to the lenders which are reflected in the bank statement. Further, he submitted, loan was also repaid to the lenders subsequently. He submitted, when the assessee has furnished all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan amount nor has repaid the loan amount before the date of the assessment order. It is observed, in course of assessment proceedings, in compliance to the directions of the Assessing Officer, the assessee has furnished the required documentary evidences including the PAN card copy of the lenders, return of income copies filed by them, loan confirmations, financial statements including balance sheet, his own bank account, etc. It is also a fact on record that both the lenders have appeared before the Assessing Officer in the course of assessment proceedings and have categorically stated on oath that they have advanced the loans to the assessee. The aforesaid statements given under oath by the lenders have not been proved to be false by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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