2025 (6) TMI 292

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....e Tax (Appeals), Kanpur [CIT(A)] dated 03-01-2024 in the matter of an assessment framed by Ld. DCIT / ACIT, Central Circle, Agra u/s 143(3) r.w.s. 153A of the Act on 31-12-2019. Having heard rival submissions and upon perusal of case records, the appeal is disposedoff as under. The sole issue that arises for our consideration is addition of unsecured Loans. Assessment Proceedings 2.1 During assessment proceedings, pursuant to search action in the case of BNR group on 26-09-2017, notice u/s 153A was issued to the assessee. It transpired that the assessee raised unsecured loan of Rs.187.05 Lacs from M/s L.S. Automobiles and Finance Co. Ltd. Since the assessee failed to produce the director of that entity to confirm the transactions, Ld.....

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.... The assessee was under no obligation to prove the source of source in the bank account of the creditors. Reliance was placed on various judicial decisions including the decision of jurisdictional High Court in the case of CIT vs. S. Kamaljeet Singh (147 Taxman 18); the decision in Banarsi Prasad Vs CIT (304 ITR 239) to arrive at such a conclusion. Finally, the impugned addition was deleted in para 7.45 by holding that the assessee had proved the identity, creditworthiness of the creditors as well as the genuineness of the transaction. The burden as required to be discharged u/s 68 was fully satisfied. 3.2 With respect to loan as obtained from M/s Maa Bhagwati Enterprises, the assessee's submissions were subjected to remand proceedings. ....

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....d. CIT(A) in accepting the loan transaction by placing reliance on plethora of judicial decisions could not be faulted with. We concur with the same and accordingly, dismiss this ground of revenue's appeal. 5. The adjudication of loan as obtained from M/s Maa Bhagwati Enterprises is based on the order of Hon'ble IBS wherein it has been accepted that this entity was engaged in trading of edible oils for which purchases were made from M/s BN Agritech Ltd. and M/s BN Enterprises. The funds so received by the assessee were originated from M/s BN Agritech Pvt. Ltd. Therefore, as rightly held, the same could not be added in the hands of the assessee u/s 68. The adjudication of Ld. CIT(A) could not be faulted with. The corresponding ground as w....