9911796707
TMI Blog2024 (5) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... / enquiry to disprove the facts and documents furnished by the lenders and the assessee in support of the genuineness of the unsecured loan transactions. Assessee has also placed reliance on the decisionss Orchid Industries (P) Ltd. [ 2017 (7) TMI 613 - BOMBAY HIGH COURT] and CIT v. Paradise Inland Shipping Pvt Ltd.[ 2017 (11) TMI 1554 - BOMBAY HIGH COURT] on the proposition the addition u/s. 68 cannot be made when the assessee has placed necessary documents on record to prove the genuineness of the transaction and identity and creditworthiness of the lenders. However, in the case of the assessee the AO has not brought on record any prima facie material to take contrary view without disproving the documents/evidences submitted by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... njectures which is devoid of any adverse material and without appreciating the explanations provided and the evidences placed on record. 4) Your appellant prays that (a) The assessment u/s. 143(3) be held to be bad-in-law and infructuous and order be quashed. (b) Addition of Rs. 30,00,000/- made u/s 68 be deleted; (c) Disallowance of interest expense of Rs. 3,56, 122/- made u/s. 37 be deleted; (d) Any such other relief as may be deemed fit, be granted. 5) The appellant craves leave to add, amend, alter or delete any or all the grounds of appeal." 2. The facts in brief are that the return of income declaring income at Nil after set off of the brought forward loss of Rs. 44,57,473/- was filed on 30.10.2019. A search and seizure a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is statement Shri Hardik A. Dave stated that he has granted loan to the assessee from his professional income of Chartered Accountant practice and past savings. However, the AO has not accepted the genuineness of the loan on the ground that Shri Hardik A Dave was not having reasonable income or savings to provide loan of Rs. 10,00,000/- to the assessee. Therefore, the AO stated that he was not having necessary creditworthiness to advance the loan to the assessee. In respect of Hetal Hardik Shah the AO has also obtained various information and copies of the documents by issuing notice u/s. 133(6) of the Act and her statement was also recorded. In the statement she stated that she has granted loan to the assessee and also filed supporting doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given to the assessee, Balance Sheet of the lender showing the capital balance of Rs. 20 lakhs, also explaining the source of loan as repayment of old loan to the assessee. In respect of Hetal Hardik Shah the assessee has also furnished copy of bank statement of the lender reflecting loan given to the assessee and bank statement showing that there was sufficient balance in her bank account and the detail about the past savings and earning of the lender, etc. In respect of Kamlesh D. Shah, copy of the bank statement of the lender was also submitted showing that there was sufficient fund available in his bank account to provide loan to the assessee. The ld. counsel for the assessee also submitted that all the lenders have accepted in their s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income of the respective years. It was also explained that the loans were granted from the professional income, salary income and post savings, etc. We find that the AO has neither brought any material on record nor made any investigation/ enquiry to disprove the facts and documents furnished by the lenders and the assessee in support of the genuineness of the unsecured loan transactions. During the course of appeal proceedings before us the assessee has also placed reliance on the decisions in the case of CIT v. Orchid Industries (P) Ltd. [2017] 88 taxmann.com 503 (Bom) and CIT v. Paradise Inland Shipping Pvt Ltd., ITA No. 66 of 2016 (Bom) on the proposition the addition u/s. 68 cannot be made when the assessee has placed necessary d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
