TaxTMI 
TaxTMI 
2019 (10) TMI 1161
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....lso recorded, assessee has fulfilled all the criteria mentioned under section 68 of the Income Tax act. The Ld.Authorites below have erred in km and facts by adding sum of Rs. 50.716/- on account of interest paid to unsecured loans. The assessee had submitted the return copies and bank statement of the concerned parties for the verification which clearly highlights the transaction. The authorities below have erred in law by not following the judicial judgment on this subject. Any other ground which may meet the end of justice shall be submitted at the time of hearing. 2. The solitary issue raised by the assessee is that the learned CIT (A) erred in confirming the addition made by the AO for Rs. 6.50 lakhs on account of unexplained cash credit under section 68 of the Act along with the amount of interest paid on such loan. 3. Briefly stated facts are that the assessee in the present case is an individual and engaged in the business of trading and processing of grey and fabrics cloth under the name and style of M/s Shree Mahavir Fabrics. The assessee in the year under consideration has taken loan from certain parties as detailed under: S. No. Na....
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..... The AO was of the view that the impugned party is an entry provider. In case of Bhavarlal L. Patel i. He has not filed return of income for the year under consideration and had a small bank balance of Rs. 991/- before the issue of cheque to the assessee. As such he had no creditworthiness as well as he was not the man of means to advance such loan to the assessee. In case of Niranjan Jain i. He has not filed return of income for the year under consideration and had a small bank balance of Rs. 863.00 before the issue of cheque to the assessee. As such he had no creditworthiness as well as he was not the man of means to advance such loan to the assessee. In case of Ganesh Lumbaram Patel i. He has not filed return of income for the year under consideration and had a small bank balance of Rs. 863.00 before the issue of cheque to the assessee. As such he had no creditworthiness as well as he was not the man of means to advance such loan to the assessee. In case of Lumbaram Patel i. He has filed return of income for the year under consideration showing total income of Rs. 1,79,300/- and had a small bank balance of Rs. 1,966/- before the i....
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....shlal Lumbaram Patel and Lumbaram Patel despite the fact that the assessee has furnished all the requisite details about the parties. 5. On the other hand, the learned DR vehemently supported the order of the authorities below. 6. We have heard the rival contentions of both the parties and perused the materials available on record. The facts of the case have already been elaborated in the preceding paragraph and therefore we are not inclined to repeat the same. 6.1 Regarding the loan taken from Shri Niranjan Jain, we note that the assessee has submitted before the learned CIT (A) that he had not taken any loan from such party. However, the learned CIT (A) has held that the assessee has not furnished complete financial statements, therefore he confirmed the addition made by the AO. In this regard, we note that that the assessee has discharged his onus by furnishing the basic details of the parties. Therefore in our considered view the learned CIT (A) before disbelieving the contention of the assessee should have cross verified the fact from the concern party. But he has not done so. Therefore we are of the view that there cannot be any addition on account of loan taken from....
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....he judgment of Hon'ble High court of Bombay in the case of CIT Vs. Green Infra Ltd reported in 78 taxmann.com 340 wherein it was held as under: 'So far as the genuineness of the transaction of share subscriber is concerned, it concludes as the entire transaction is recorded in the books of account and reflected in the financial statements of the assessee since the subscription was done through the banking channels as evidenced by bank statements which were examined by the Tribunal. With regard to the capacity of the subscribers the impugned order records a finding that 98 per cent of the shares is held by IDFC Private Equity Fund-II which is a Fund Manager of IDFC Ltd. Moreover, the contributions in IDFC Private Equity Fund-II are all by public sector undertakings. The Tribunal has examined the case of the revenue on the parameters of section 68 and found on facts that it is not so hit. Therefore, section 68 cannot be invoked. The revenue has not been able to show in any manner the factual finding recorded by Tribunal is perverse in any manner. 6.5 Now coming to the 3rd condition, i.e. creditworthiness of the parties, we also note that the assessee has furnished the sou....