9911796707
TMI Blog2024 (5) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent the Tribunal has dismissed the appeal of the revenue on the issue of alleged unexplained credits by applying Section 68 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). 3. The appeal has been filed raising following questions of law : "1. Whether the Hon'ble Income Tax Appellate Tribunal has erred in law by deleting the addition made on account of bogus unsecured loans received by the assessee even though the assessee had failed to discharge its onus of establishing the sources of the impugned receipts ? 2. 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat count before the CIT (Appeals). The matter was carried to the Tribunal at the instance of the revenue. By the impugned order, the Tribunal has recorded its findings to the following effect : "9. It is found that the A.O. called for information u/s 136(6) of the Act from all 4 creditors and the A.O. received confirmation from M/s Paramic Goods Pvt. Ltd, M/s Jellotic Supply Pvt. Ltd. and M/s Sankhuwala Commercial Pvt. Ltd. The learned A.O. also examined the bank statement of the Investor Companies and noticed that the money received by it was transferred on the same 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is not required to prove the source of the investment. In this case, the assessee has proved the identity of parties and genuineness of the transaction, which are being transaction through bank. The capacity of the lender cannot be doubted since there was no allegation that the assessee has rooted its own money through the investors. Further in the absence of any finding regarding cash deposited in the banks account of the creditor prior to disbursement of loan and no adverse finding regarding the identity and existence of the creditor and since all the loans were interest 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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