2024 (5) TMI 1292

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....1.12.2018 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ITO, Ward-46(3), New Delhi (hereinafter referred as the Ld. AO). 2. The facts in brief are that the Assessee filed return of income of Rs. 13,85,460/- and the return was processed u/s 143(1) of the Act and subsequently, the case was selected for complete scrutiny on the grounds, whether loans and advances received are genuine and from disclosed sources, whether outward foreign remittance is from disclosed sources and appropriate withholding and reporting obligations have been complied with, whether receipt of foreign remittance has been correctly offered for tax, whether sales turnover/receipts has been correctly offered for tax. Statutory ....

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....d. CIT(A) upheld the addition to extent of Rs. 25 lakhs u/s 68 with following relevant findings. "As discussed at length, the appellant has been unable to establish the genuineness of the loans of Rs 21,00,000/-, Rs 4,00,000/- and Rs 15,00,000/- (out of the total loan of Rs 50,00,000/-) disbursed on various dates to the appellant. The explanation offered by the appellant that these amounts have been sourced by loans from family members of the lender are not corroborated by any credible evidence. The AO rightly treated the purported loans of Rs 40,00,000/- as unexplained credit under section 68. No adverse' inference is, however, being drawn with regard to the loan of Rs 10,00,000/- disbursed as the AR of the appellant has disch....

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....unsecured loan u/s 68, is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234B & 234D of Income Tax Act, 1961. 4. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 3. Heard and perused the record. 4. Ld. AR submitted that the lenders are clearly identifiable and when the lenders have confirmed the fact of loans having been given to the assessee and lenders are assessed to tax and have furnished their ba....

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..... Commissioner of Income Tax 49 ITR 0273. 5. Ld. DR however supported the findings of Ld. ΑΟ. 6. On appreciating the material on record and the submissions, and the grounds raised, primarily it comes forth that the assessee was given part relief by the Id. CIT(A) . On appreciating the order of the Id. CIT(A) , it comes up that primarily, the Id.CIT(A) has considered certain part of the loan transactions as suspicious as there were immediate credit of the exact amounts just a few days before the loan was given to the assessee. 6.1 In this context, it comes up that with regard to total loan of Rs. 45 lakhs from Shyam Sunder Bansal, there was a credit entry of Rs. 25 lakhs on 08.12.2015 for which an explanation was given....