2019 (3) TMI 1258

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....ssessee, an individual, is carrying on business as a reseller of fabrics through his proprietary concern M/s. Maharashtra Textiles. For the assessment year under dispute, the assessee filed his return of income on 24th September 2012, declaring total income of Rs. 2,63,667. During the assessment proceedings, the Assessing Officer noticing that the assessee has shown unsecured loan of Rs. 5 lakh each from two individuals called upon the assessee to furnish the necessary details of the lenders such as copies of income tax returns, PAN details and bank statement copies. After perusing the documentary evidences filed by the assessee, the Assessing Officer observed that though the lenders have advanced the loans through cheques, however, prior t....

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.... evidences including loan confirmation from the lenders, but, the lenders were also produced before the Assessing Officer. He submitted, in course of examination by the Assessing Officer, the lenders have categorically admitted of having advanced the loans to the assessee. He submitted, both the lenders are income tax assessees filing their return of income regularly. He submitted, the balance sheet of the lenders was also filed before the Assessing Officer wherein availability of fund to advance the loan to the assessee was demonstrated. He submitted, the assessee has regularly paid interest on loan to the lenders which are reflected in the bank statement. Further, he submitted, loan was also repaid to the lenders subsequently. He submi....

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....see has neither paid interest on the loan amount nor has repaid the loan amount before the date of the assessment order. It is observed, in course of assessment proceedings, in compliance to the directions of the Assessing Officer, the assessee has furnished the required documentary evidences including the PAN card copy of the lenders, return of income copies filed by them, loan confirmations, financial statements including balance sheet, his own bank account, etc. It is also a fact on record that both the lenders have appeared before the Assessing Officer in the course of assessment proceedings and have categorically stated on oath that they have advanced the loans to the assessee. The aforesaid statements given under oath by the lenders h....