9911796707
TMI Blog2024 (5) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... genuine transactions. In any case, the AO was not successful in establishing that the money deposited by the creditors was not theirs but that it had been routed through the creditors by the assessee. In that regard, the Tribunal has categorically observed that there was no proof to establish that such money had been received by the creditors through cash deposits made by the assessee. Merely because the Directors of the two companies were common may have given rise to suspicion that the deposits received by the assessee company from the other, was bogus. Yet, the Tribunal has found, there is no material or evidence on record to establish that the creditors were shell companies. The observation made by the Assessing Officer in that regard i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Whether the Hon'ble Income Tax Appellate Tribunal has erred in law by failing to appreciate that the primary onus to prove the genuineness of the transactions and the identity and creditworthiness of the lender lies on the assessee which the assessee has failed to discharge ? 3. Whether the Hon'ble Income Tax Appellate Tribunal has erred in law by acting in contravention to the established judicial precedents and deleting the additions made on account of bogus unsecured loans received by the assessee even though the assessee had fully failed to explain the sources of the same ? 4. Whether the Hon'ble Income Tax Appellate Tribunal has erred in law by acting in contravention to the letter and legislative spirit of amendments bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date to the assessee. Apart from the same, necessary documentation such as loan confirmation, certificate of incorporation, PAN Number, Copy of ITR, Balance Sheet and P L Accounts, Bank statement of creditors etc. were also provided as evidence of identity, creditworthiness and genuineness of the creditor. There is no finding of any cash deposited in the bank account of the creditors prior to disbursement of loan and no adverse finding recorded regarding the identity and existence of creditors and further no findings that the creditors were entry operators of any kind by the A.O. The loans were interest bearing loans and the related interest income is duly reflected in the ITR of the Creditor Companies. The A.O. without having any basis ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bearing loans and related interest income is duly reflected in the ITR of the creditor companies, in our opinion, the CIT(A) has committed no error in deleting the addition. Accordingly, we find no merit in Ground No. 1 of the Revenue. 6. Thus, the suspicion voiced by the Assessing Officer as to the source of deposit received by the assessee was gone into. On the strength of material and evidence that was brought on record, the Tribunal reached a finding that the loans obtained by the assessee were interest bearing. Interest was actually paid. Second, the Tribunal found that the Assessing Officer had not been able to doubt the identity and existence of the creditors. As to the source of money deposited by the creditors, adequate enquiry ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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