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TMI Blog2024 (3) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... to advance amounts to the Director. Therefore, the assessee has proved the source of source also in this case although not required to prove in law. We hold that the assessee has proved the identity, genuineness and creditworthiness of the creditor and therefore, the AO is erred in treating the loan of Rs. 80 lakhs received by the assessee as unexplained cash credit u/s 68 - Thus, reversing the findings of the CIT(A), we direct the AO to delete the addition made u/s 68. Addition u/s 2(22)(e) - Assessee is a Director and shareholder of company granting loan, thus holding more than 10% of voting rights of the company - CIT(A) sustained the addition - HELD THAT:- Counsel before us reiterated the submissions made before the CIT(A) subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuineness of the lenders. Assessee filed reply along with confirmations and other details called for by the AO. On examining the details, evidences furnished by Assessee the AO was of the view that loan of Rs. 80 lakhs taken from one Shri Sachin Dutta no complete documentary evidences were furnished to establish the identity, creditworthiness and genuineness of transaction. The AO, thus, was of the view that assessee failed to discharge the onus in proving the credit as genuine. 3. In the appellate proceedings, the assessee provided confirmation of ledger accounts, copy of bank statement of the lender and submitted that the amount has been accepted through banking channel and repaid the same through banking channel and to prove this f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditor and, therefore, identity of the creditor is not proved. The AO also stated that the creditor filed return for AY 2013-14 declaring income of Rs. 12,70,656/- and whereas the loan advanced to the assessee was Rs. 80 lakhs and, therefore, the lender is not creditworthy to give such a huge loan to the assessee. 5. The Ld.CIT(A) admitting the additional evidences and considering the remand report of the AO and the rejoinder of the assessee the addition made u/s 68 was sustained agreeing with the AO that the assessee failed to discharge the onus of establishing the identity of the party as the lender was not produced before the AO. 6. The Ld. Counsel submitted before us that the various evidences furnished before the authorities cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. Assessee has produced the following document before the AO/CIT(Appeals) : - Copy of Computation for Assessment Years 2011-12, 2012-13, 2013-14 and copy of ITR for Assessment Years 2011-12, 2012- 13 and 2013-14. Copy of Bank account statement of Mr. Sachin Dutta. Copy of audited financial statement as on 31.03.2013 and 31.03.2012 of Shri Balaji Hitech Construction Pvt. Ltd. in which Sachin Dutta is having 98.4% interest in form of shareholding. Copy of ITR for Assessment Year 2013-14 and 2012-13. Copy of master data of Shri Balaji Hitech Constructions Pvt. Ltd. signify credit limit of Rs. 42 crores from PNB. Confirmation as on 31.03.2013. Balance Sheet as on 31.03.2011 of Shri Sachin Dutta stating cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversing the findings of the Ld.CIT(A), we direct the AO to delete the addition made u/s 68 of the Act. 10. The assessee also raised one more ground in sustaining the addition of Rs. 85,304/- made u/s 2(22)(e) of the Act. The AO while completing the assessment, it is noticed from the balance sheet that the assessee has received loan of Rs. 8,75,000/- from M/s KAJ Infrastructure Pvt. Ltd. Assessee is a Director and shareholder of M/s KAJ Infrastructure Pvt. Ltd. holding more than 10% of voting rights of the company. Therefore, the AO applying the provisions of section 2(22)(e) of the Act treated the loan of Rs. 8,75,000/- taken by the assessee from M/s KAJ Infrastructure Pvt. Ltd. as deemed dividend. However, since M/s KAJ Infrastructure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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