2014 (5) TMI 190

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....rming the addition of Rs.100,000/- for unsecured loan received from M/s.Kundan Traders by not considering the proper and sufficient materials and records submitted by the assessee. Assessee has taken these loans for the business purpose. It is submitted that the same unsecured loan of Rs.100,000/- may kindly not be added to the total income as cash credit u/s.68 of the Act." 3. The learned counsel for the assessee submitted that the assessee has received unsecured loan from M/s.Kundan Traders of Rs.1,00,000/- which was added by the AO under section 68 of the Act and confirmed by the CIT(A). He submitted that the assessee has discharged its onus of proving identity and credit-worthiness of the creditor and genuineness of the transaction o....

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....able. The account of the creditor was squared up in the subsequent Asstt.Year 2009- 10 and the amount of deposit along with interest amount was paid back by the assessee per account payee cheques. The assessee has filed copy of acknowledgement for filing of IT return by the creditor in the compilation before us. We find that the interest amount was disclosed by the creditor in his P&L account, and was a part of the total income computed for the relevant Asstt.Year 2007-08 and necessary evidences thereof has been filed before the Tribunal. The identity of the creditor is not in dispute. In these facts and circumstances of the case, we are of the considered view that the assessee has discharged its onus of proving the identity and creditworth....