2018 (9) TMI 701

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....yment of loan to Assessee's namesake in, Bangalore. 2. Ld. Counsel for the Revenue submitted that assessee a trader in steel, had repaid a loan of Rs. 7,65,76,906/- to another concern named M/s. Jindal Steels, Bangalore. According to the ld. Departmental Representative, assessee was required to explain the source for the funds used for making the above repayment. As per the ld. Departmental Representative, assessee had through a letter dated 29.02.2016, explained the source for the loan repayment and this included a sum of Rs. 3,61,07,920/- claimed as coming out of capital of like amount introduced by one of its partners Shri. Mohanlal Jindal on 22.05.2012. However, as per the ld. Departmental Representative, the said Shri. Mohanlal Jindal....

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....ennai. As per the ld. Authorised Representative, assessee had a drawing power of Rs 13,00,00,000/-. Relying on the statement of this account placed at paper book pages 2 to 4, ld. Authorised Representative submitted that payment to M/s. Jindal Steels, Bangalore was made through RTGS transfer from this overdraft account. According to him, even if the credit from Shri. Mohanlal Jindal was not considered, assessee was having sufficient source for explaining the repayments. 4. We have considered the rival contentions and perused the orders of the authorities below. Addition made by the ld. Assessing Officer was for a sum of Rs. 3,61,07,920/- being, part of the repayment of an earlier loan taken by the assessee to M/s. Jindal Steels, Bangalore....