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TMI Blog2024 (12) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... ect the AO to grant deduction on account of interest paid and ground no. 1 raised by the assessee is hereby allowed. Addition of unsecured loans received - Loan received from Mr Piyush Kumar, was repaid and thereafter fresh loan was received from the said party. AO in the assessment had added both old as well as the fresh loans. Once the second loan of Rs 5 lakhs is accepted as genuine and found to be satisfactory, there is no case for treating the earlier loan of Rs 20 lakhs from the same party to be non-genuine. Hence we direct the learned AO to delete the addition of Rs 20 lakhs received from Mr Piyush Kumar. Addition on account of unsecured loans was made by the learned AO u/s 69A - Mentioning of wrong section - onus to prove - For sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the ld. Commissioner of Income Tax (Appeals)-3, Noida [hereinafter referred to as ld. CIT(A) , in short] in Appeal No. CIT(A),Kanpur-4/10877-17 dated 28.02.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) dated 28.12.2017 by the Assessing Officer, DCIT, Central Circle, Meerut (hereinafter referred to as ld. AO ). 2. At the outset, none appeared on behalf of the assessee despite issuance of notice. Hence we proceed to dispose of this appeal on hearing the learned DR and based on materials available on record. 3. The ground No. 1 raised by the assessee is challenging the confirmation of disallowance of interest expenditure of Rs 1,50,045/-. 4. We have heard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The Learned CITA observed that assessee had also shown savings bank interest of Rs 2,10,045/- from bank, but ultimately only a sum of Rs 60,000/- was offered as net interest income in the return. The Learned CITA accordingly restricted the disallowance only to the extent of Rs 2,10,045/- towards interest. 6. From the facts narrated above, it is not in dispute that the borrowed funds have been utilized by the assessee for advancing loans to certain parties from whom interest income has been indeed earned by the assessee. Hence, one-to-one nexus has been proved beyond doubt. Accordingly, the interest expenditure paid by the assessee on the unsecured loans becomes an allowable expenditure for the purpose of earning interest income in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of the lender and genuineness of the transaction stood duly complied only in respect of Nirmala Medical Store. The learned CITA confronted the remand report of the learned AO to the assessee. The learned AR of the assessee submitted confirmed copy of ledger account, bank statement of the lender in respect of Seema Sirohi. The learned CITA examined the same. The learned CITA confronted the assessee as to why the ITR of Seema Sirohi was not filed by the learned AR. In response to the same, the assessee submitted that Seema Sirohi was not falling within the tax bracket and hence she was not obliged to file her income tax return. The confirmation of loan given by Ms. Seema Sirohi to the assessee together with her source of making payment t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 17.50 lakhs (from aforesaid three parties) stood duly confirmed and found to be satisfactory by complying with the three ingredients of section 68 of the Act. Accordingly, the learned CITA restricted the addition under section 69A of the Act only to the extent of Rs. 36 lakhs (5350000-1750000). Aggrieved, the assessee is in appeal before us. 10. It is pertinent to note that against the reliefs granted by the learned CITA to the extent of Rs 17.50 lakhs in respect of loans received from three parties, the revenue is not in appeal before us. 11. First of all, we would like to state that in respect of loan received from Mr Piyush Kumar, the loan of Rs 20 lakhs received on 7-5-2014 was repaid on 13-8-2014 and thereafter fresh loan of Rs 5 lak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee to the department when provisions of section 69A of the Act are being invoked. When an addition is being contemplated under section 68 of the Act, the burden is on the assessee to prove all the three ingredients by proving the nature and source of credit found credited in the books. If such burden is not discharged by the assessee, then the credits found thereon shall be deemed to be the income of the assessee for the year under consideration in terms of section 68 of the Act. Whereas, for invoking the provisions of section 69A of the Act, the revenue had to first prove that assessee is found to be the owner of any money, bullion, jewellery etc. Unless such burden is discharged by the revenue, the onus does not get shifted to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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