TaxTMI 
TaxTMI 
2015 (6) TMI 485
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....made under section 68 of the Act. 2. Brief facts are that assessee filed return of income on 24.08.2011 admitting income of Rs. 1,13,420/-. Assessment in this case was completed under section 143(3) of the Act on 28.3.2013 determining the income of the assessee at Rs. 51,30,220/-. While completing the assessment, Assessing Officer made addition of Rs. 50,00,000/- as unexplained credit under section 68 of the Act in respect of loan borrowed by the assessee from M/s. Aditicon. Services India Pvt. Ltd. on the ground that loan transaction reflected in the bank statements, genuineness, creditworthiness and existence of the loan creditors could not be proved and established by the assessee. On appeal, Commissioner of Income Tax (Appeals) delet....
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....d loan cannot be treated as unexplained credit of the assessee simply because lender is not filing returns. Before us, counsel for the assessee places confirmation letter from the lender M/s. Aditicon. Services India Pvt. Ltd. confirming that it has lent loan of Rs. 50,00,000/- through RTGS out of which Rs. 25,00,000/- was also repaid by the assessee through demand draft. He has also enclosed copies of bank statements of assessee as well as the lender. Counsel for the assessee further submits that lender has given new address in the confirmation and therefore, it cannot be said that lender is non-existent. Counsel for the assessee supports the order of the Commissioner of Income Tax(Appeals) in deleting the addition. 5. Heard both sides.....
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....editworthiness of the company is not established. On appeal, Commissioner of Income Tax (Appeals) deleted the addition for the reason that loan transaction was routed through banking channels, the lender company has advanced loan to the assessee by way of RTGS. This was also verified by the Assessing Officer. PAN & income-tax particulars of the lender company were given to the Assessing Officer. The identity of the creditor was established. The Commissioner of Income Tax (Appeals) therefore held that addition was made merely for the reason that loan is not genuine because lender did not file its return with income-tax department or Registrar of Companies and the creditor not found in the address given and which matters were beyond the contr....
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....are also enclosing our ledger printout of Mr. M.Rohit Mehta in our books. Thanking you, Yours faithfully For Aditicon Services (India) Pvt.Ltd. Sd/- Director. Aditicon: M.T.Rajen's Properties, 2nd floor, 73/40, Bazullah Road, T.Nagar, Chennai-600 017. Ph:044 66913800." 7. As could be seen from the above confirmation, the director of the lender company confirmed that lender has advanced loan of Rs. 50,00,000/- to the assessee through RTGS, out of which Rs. 25,00,000/- was repaid through demand draft by the assessee and they are assessed to income-tax department and PAN details were also provided. In the confirmation new address of the lender was also provided. The lender company also provided its bank account establis....