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TMI Blog2023 (4) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... f the lender coupled with genuineness of the transaction. That being the case, the unsecured loan availed of Rs. 14,00,000 remains unexplained. Therefore, the addition made under Section 68 of the Act, in my view, is justified. As regards, the alternative contention of the assessee that nonrepayment of loan will amount to cessation of liability, find the said submission preposterous. Once, there is serious doubt regarding the genuineness of the loan transaction and creditworthiness of the creditor, it is not understood how it can be treated as cessation of liability when the liability itself is non-genuine. Assessee appeal dismissed. - Shri Saktijit Dey, Judicial Member For the Appellant : Abhimanyau Jhamba, Adv. For the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rar of Companies (ROC), the assessee could not furnish the ITR and other evidences to substantiate the creditworthiness of the lender. The Assessing Officer did not find the reply of the assessee convincing. He observed, not only the name of the lender has been struck off by the ROC but there are no return of the lender available on the site of Ministry of Corporate Affairs (MCA). Accordingly, he proceeded to add the alleged unsecured loans of Rs. 14,00,000 as unexplained cash credits under Section 68 of the Act. Though, the assessee contested the addition before the first appellate authority, however, it was confirmed. 6. Before me, learned counsel appearing for the assessee reiterated the stand taken before the departmental authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red loan availed of Rs. 14,00,000 remains unexplained. Therefore, the addition made under Section 68 of the Act, in my view, is justified. 12. As regards, the alternative contention of the assessee that nonrepayment of loan will amount to cessation of liability, I find the said submission preposterous. Once, there is serious doubt regarding the genuineness of the loan transaction and creditworthiness of the creditor, it is not understood how it can be treated as cessation of liability when the liability itself is non-genuine. 13. In view of the aforesaid, I do not find reason to interfere with the decision of the departmental authorities. Grounds are dismissed. 14. In the result, the appeal is dismissed. Order pronounced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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