No addition under section 68 be made if the assessee has discharged burden of proof
|
Case Details: |
Kruti Organisers P. Ltd. vs. ITO |
|
Appeal No.: |
ITA No. 3458/Ahd/2016 |
|
Order pronounced by: |
ITAT Ahmedabad |
|
Date of order: |
01-06-2020 |
|
In Favour of: |
Partly in favour of assessee |
|
Assessment Year: |
2004-05 |
Brief Facts:
- The assessee submitted that he has received unsecured loans from Navratna Organisers & Developers P. Ltd. and Navratna (Kaivanna) Association. To explain the same, he has filed confirmations received from each of the parties along with address and PAN of the parties.
- The assessee has also submitted copies of accounts of all the parties from whom unsecured loans have been taken including the above two parties.
- The transactions had taken place through bank and therefore primary onus cast upon the assessee was discharged and thus, there is no justification for invocation of section 68 in this behalf.
- It is also submitted by the assessee that assessment orders u/s 143(3) read with section 153C were completed in the case of above lenders, wherein all the transactions, bank accounts and final accounts of these parties and the loans/ advances made to the assessee were verified by the AO of the above parties.
- In the light of all the above facts, the observation of the A.O. that the assessee has failed to explain the cash credit is erroneous and not borne out of material evidences on record.
- Therefore, the impugned additions made by the Revenue authorities ought to be deleted.
Judgements relied upon by the assessee:
|
Sr. No. |
Citation |
|
1 |
DCIT vs. Rohibni Builders 256 ITR 360 (Guj) |
|
2 |
CIT vs. Pragati Co-op Bank Ltd. 278 ITR 170 (Guj) |
|
3 |
Murlidhar Lahorimal vs. CIT 280 ITR 512 (Guj) |
|
4 |
CIT vs. Orissa Corporation P. Ltd. 159 ITR 78 (SC) |
Observation of Tribunal:
- The question before me, is whether the assessee has satisfied conditions stipulated in section 68 of the Act or not in respect of the cash credit availed form the aforesaid two parties.
- Details of accounts along with confirmation, addresses and PAN of the lenders have been furnished to the A.O. for verification.
- Even the assessee has furnished copy of assessment orders passed in the case of the above lenders for the relevant year for verification.
- Apart from that, the funds have been received by the assessee through banking channel.
Tribunal Order:
Looking to above observations, all the ingredients necessary for proving cash credit under section 68 has been satisfied by the assessee. Thus, the assessee has discharged burden put upon it by virtue of section 68 of the Income Tax Act. Hence, the addition is deleted.
Read Complete Order: Kruti Organisers P. Ltd. vs. ITO - ITAT Ahmedabad
