2025 (10) TMI 519

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....redit made by the AO u/s. 68 of the Income Tax Act, 1961 ('the Act'). 2. This appeal was earlier disposed by the Co-ordinate Bench of the Tribunal on 25-01-2024. Subsequently, the assessee filed an M.A. pointing out certain mistakes apparent from record in the order passed by the Co-ordinate Bench of the Tribunal. It was submitted that the addition made by the AO u/s. 68 of the Act was related to 16 creditors and Tribunal did not adjudicate grounds relating to five creditors and the same has resulted in a mistake apparent from record. Accordingly, the Tribunal, vide its order dt.25-11-2024 passed in M.A. No. 106/Mum/2024, recalled the order dated 25-01-2024 passed in this appeal earlier, for the limited purpose of deciding the issue rela....

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....unt or not? He has deleted the additions where ever the capital of the lender was more than the loan amount and confirmed the remaining additions. The Ld.AR also submitted that all the lenders are assessed to income tax and further, the assessee has furnished PANs of all the above said creditors, copies of their income tax returns, financial statements and bank account. These lenders were having sufficient bank balances before lending money to the assessee. In some of the cases, it was so happened that the lenders have received money by way of cheques from some other parties and there after given loans to the assessee thereafter. These transactions have been viewed adversely by the AO. The Ld.AR submitted that the suspicion should arise onl....

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....Act and hence, the AO could not have made addition u/s. 68 of the Act, without disproving the claim of the assessee. 8. The Ld.DR, on the contrary, submitted that it is not proved by the assessee that all the lenders were having money lending licenses. Further, the assessee has not stated the purpose for which the assessee has taken these loans. The Ld.DR further submitted that all the lenders were declaring low income, which would not justify the quantum of loan given by them. 9. In the rejoinder, the Ld.AR submitted that the quantum of income declared by the lenders is not relevant for determining the creditworthiness of the lenders. He submitted that what is required to be seen is whether the lender was having sufficient funds for ....