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Industrial shrimp-feed machinery classification follows its commercial function, placing integrated production plants under the specific industrial fo...
The ITAT Mumbai held that the burden of proof regarding the identity, creditworthiness, and genuineness of loan creditors lies with the assessee. Once the assessee establishes the "nature and source" of credit entries, the onus shifts to the AO to rebut it with cogent evidence. In this case, the AO relied on a statement without cross-examining the individual, who later retracted the statement citing coercion. The AO's failure to summon and cross-examine the individual renders the addition u/s 68 unsustainable. The untested statement alone cannot justify the disallowance of interest expenditure. Citing precedent, the ITAT directed the deletion of the addition u/s 68 and allowed the interest expenditure after TDS deduction for the relevant assessment years.
The ITAT Mumbai held that the burden of proof regarding the identity, creditworthiness, and genuineness of loan creditors lies with the assessee. Once the assessee establishes the "nature and source" of credit entries, the onus shifts to the AO to rebut it with cogent evidence. In this case, the AO relied on a statement without cross-examining the individual, who later retracted the statement citing coercion. The AO's failure to summon and cross-examine the individual renders the addition u/s 68 unsustainable. The untested statement alone cannot justify the disallowance of interest expenditure. Citing precedent, the ITAT directed the deletion of the addition u/s 68 and allowed the interest expenditure after TDS deduction for the relevant assessment years.
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