TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 1219
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....in making an addition of Rs. 1,20,86,000/- by treating the unsecured loans as alleged "unexplained creditor" under 68 of the income Tax Act, 1961. 2. a) That the Ld. CIT(A) has erred in ignoring the facts and evidences that the copy of Permanent Account Number of the creditor, confirmation of the creditor or his letter paid vide letter dated 06.09.2022, bank statement of M/s Woodstow Apparels Which prove that amount of Rs. 1,18,61,000 and Rs. 2,25,000/- had been transferred from the creditor's account through banking channel and which has been ignore without assigning any reasons. b) That the Ld. CIT(A) has not appreciating the facts that all the amount of credits have been repaid by the appellant during the financial year 2021-2022....
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....assessee was asked for the necessary confirmation from the party concerned, and copy of the bank statement of M/s Woodstow Apparels. The assessee furnished ledger account of M/s Woodstow Apparels in the books of accounts and copy of the bank account of that party and also submitted confirmation from the lender, duly signed and stamped by the partner of the lender, alongwith PAN card of lender.. 5. Even the copy of bank statement of lender, substantiating the credit worthiness and genuineness of the transactions had been submitted. From the perusal of the bank statement of M/s Woodstow Apparels, i.e. lender, it had been noticed that the amount has been received by the said lender from M/s Kelly Impex. It was also noticed by the Assessing Of....
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.... the assessee had duly proved the identity, credit worthiness and genuineness of transactions and the assessee filed the confirmation from the lender and all the transactions are through banking channel. Merely non-furnishing of ITR, cannot prove that the unsecured loan was bogus and in genuine and, as such, the addition u/s 68 was not called for. However, the CIT(A) dismissed the appeal of the assessee stating therein that since the copy of ITR return had not been furnished so he confirmed the addition in a summary manner. 9. During proceedings before us, the Ld. Counsel of the assessee argued vehemently that the identity and genuineness and credit worthiness of the lender, namely M/s Woodstow Apparels clearly proves the genuineness and c....
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.... assessee relied upon the judgment of ITAT, Delhi Bench in the case of Vivek Nagpal in ITA No.2501/Del/2013, (Copy placed in the judgement set) for the preposition that where the identity and source of source and genuineness of transactions have been proved, merely that the copy of the ITR return of lender has not been furnished, would not go against the assessee. The reliance was also made in the judgment of Hon'ble Apex Court in the case of Sh. Chunni Lai, reported in 2111TR11 (Statute), in which, the SLP of the department was dismissed, since the assessee had proved the source of source. Similarly, reliance was placed on the case of Malbros International Pvt. Ltd. in ITA No. 676/Chd/2024 vide order, dated 30.12.2024 of Chandigarh Ben....
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.... some other judgments of Ahmadabad Bench, Surat Bench, Chandigarh Bench were cited in this context. 12. The Ld. Sr. CIT (DR) relied upon the order of the Assessing Officer/CIT(A) and stated that since no evidence of ITR has been filed of the' Lender' party namely M/s Woodstow Apparels, it could not be established that whether the lender is genuine or not. Further the nature of transaction as per the order of the AO, created a doubt and suspicion and, thus, argued for confirmation of addition as made by the CIT(A). 13. We have gone through the order of the CIT(A)/AO, arguments of both sides and the Paper and 'judgment set,', as filed by the counsel of the assessee and find that the facts are not disputed at all. Since the a....