https://www.taxtmi.com/caselaws?id=29258 Where a taxpayer relies on a third-party cash credit as a loan, the taxpayer must prove the creditor's existence, capacity to lend, and prima facie genuineness of the transaction; tax authorities may still test the surrounding circumstances and reach an independent view on genuineness. On the facts discussed, adverse material, the creditor's apparent name-lending activity, unexplained discrepancies in the date of advance, and the failure to produce account books despite opportunity showed that the Tribunal had ignored relevant evidence. The conclusion that the loan and interest were genuine was therefore unsustainable, and the matter was decided in favour of the Revenue. en-us Thu, 26 Nov 1981 00:00:00 +0530 Thu, 11 Mar 2010 16:53:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29258 Where a taxpayer relies on a third-party cash credit as a loan, the taxpayer must prove the creditor's existence, capacity to lend, and prima facie genuineness of the transaction; tax authorities may still test the surrounding circumstances and reach an independent view on genuineness. On the facts discussed, adverse material, the creditor's apparent name-lending activity, unexplained discrepancies in the date of advance, and the failure to produce account books despite opportunity showed that the Tribunal had ignored relevant evidence. The conclusion that the loan and interest were genuine was therefore unsustainable, and the matter was decided in favour of the Revenue. Case-Laws Income Tax Thu, 26 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29258