2022 (3) TMI 210

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....ismissed and the order of the lower authorities stands confirmed. 3. Coming to the next ground of appeal of the assessee is against the action of the Ld. CIT(A) upholding the action of the AO wherein the AO added Rs. 12,38,000/- u/s. 68 of the Income-tax Act, 1961 (hereinafter referred to as the "Act") and Rs. 53,661/-. 4. Brief facts of the case as noted by the Ld. CIT(A) are as under: "The issue raised in these grounds pertains to the addition of Rs. 12,38,000/- made by the Assessing Officer on account of loan received from seven individuals and disallowance of Rs. 53,661/- made on account of interest paid in lieu of as follows: Name of Loan Creditor Loan Amount Interest Paid a) Abhishek Gupta Rs. 3.65.000/- ....

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.... As a corollary, the interest paid in the sum of Rs. 53,661/- on this account was also disallowed." 5. Aggrieved by the aforesaid order of the Ld. CIT(A) confirming the action of AO, the assessee has preferred this appeal before this Tribunal. 6. Having heard rival submissions and after having carefully gone through the facts and circumstances of the case, it is noted that the assessee had received loan from seven individuals to the tune of Rs. 12,38,000/- and has claimed to have paid an interest of Rs. 53,661/- (supra). According to AO, these loan creditors are all family members of the assessee and that just before the loan was paid by cheque to the assessee, there was cash deposit to facilitate the issue of cheque to the assessee. ....

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....Y 2012-13, the assessee had to demonstrate before the AO to his satisfaction the nature and source of the credit entry. And according to him, the assessee has discharged this burden by proving the identity, creditworthiness and genuineness of the loan transaction from the seven (7) persons, so the AO ought not to have added the same u/s 68 of the Act. It is noted that the assessee in this case has filed the following documents to prove the identity, creditworthiness and genuineness of the loan transaction. In such a back ground, unless the material placed by the assessee to prove the nature and source of the credit entry is rebutted by the AO, no addition can be made u/s 68 of the Act: (i) Confirmation of Account, (ii) ITR filed for A....