2025 (6) TMI 1795

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....710/- for AY 2015-16. The return was processed and the case of the Assessee was selected for scrutiny u/s 143(2) of the Income Tax Act, 1961 ('Act' for short). During the course of assessment proceedings, the assessee was asked to substantiate the claim of unsecured loan of Rs. 52,00,000/- taken from M/s Nuvaan Buildtech Private Limited. The assessee produced certain documents to prove the identity, creditworthiness and genuineness of the transactions. After analyzing the documents produced by the assessee, the AO opined that the assessee has failed to discharge its onus of proving the genuineness of the unsecured loan. Accordingly, made additions u/s 68 of the Act to the tune of Rs. 52,00,000/-. Aggrieved by the assessment order da....

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....do not constitute sufficient evidence to prove the creditworthiness of the lender and genuineness of the transaction, thus the genuineness of the transaction is suspected, as if, the instant case is of the share application money received by the Assessee/Appellant. This violated the basic principle as laid down under section 68 of the Act, inquiring the source of the source, which is not applicable in case of the unsecured loans. 4. That the learned CIT (Appeals), has erred in law and on facts and circumstances of the case by mentioning the drawback in the submission of the AR of the appellant that no complete copy of return of income of M/s Nuvaan Buildtech Private limited has been submitted and in the financial statement of the s....

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....d the directors of the lender company. Further, submitted that the bank statement of the lender company clearly shows that the huge amounts of money are transferred, however, the lender company has shown 'Nil' revenue from operations and the same is not involved in the real business activities as seen from the return of income placed on record. The Ld. DR submitted that the company i.e. M/s Nuvaan Buildtech Private Limited is a dummy/paper company created with a motive to provide entries to interested parties. The ld. DR by relying upon the judgment of Hon'ble jurisdictional High Court in the case of Pr. CIT vs Bikram Singh, reported in [2017] 85 taxmann.com 104 (Del.), sought for dismissal of the appeal. 5. We have heard the ld. DR and ....