TaxTMI 
TaxTMI 
2025 (10) TMI 801
X X X X Extracts X X X X
X X X X Extracts X X X X
....u/sec. 250 of the Income Tax Act, 1961 (in short, 'Act') for the A.Y. 2022-23. 2. In the instant case, the Assessee had declared total income at Rs. 22,42,320/- by filing its return of income on dated 30/09/2022, which was selected for scrutiny on the following issues: - (i) High liabilities as compared to low income/receipts (ii) Substantial loans given by the Assessee as per Form 3CD of debtors in comparison to Gross Total Income shown in the ITR 2.1 The Assessing Officer (AO) observed that during the assessment proceedings, the Assessee had taken various loans from the following parties: - Sr.No Description Amount 1 Comp Engg. & Exports 3,18,34,520 2 Deepak Stels India 5,50,000 3 K....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hey are known to the Income Tax Department. Further, from the bank statement of the parties, who advanced loans, creditworthiness is also proved. Further, as all the amounts were received through banking channels, genuineness of the transactions is also proved. 4.2 The Assessee before the Ld. Commissioner further claimed that the primary onus casted upon the Assessee, has been discharged and thereafter it was for the AO to examine the evidence and documents and bring material on record to show that the loans were not genuine. The Assessee also claimed that it has already repaid the amount of loans along with interests by deducting the TDS as detailed below: - Particulars PAN No Opening Balance as on 01.04.2021 Received Amount....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 5,73,81,289/- made by the AO u/sec. 68 of the Act, by observing and holding as under: - "4.4 The contention of the appellate assessee that by submitting the aforementioned documents, it has discharged its onus of prima-facie establishing the identity, genuineness and creditworthiness of the loan creditors, and therefore, if there were any reasons for the AO to doubt the claim of the assess, the AO should have asked for additional documents, or have conducted additional enquiries and has brought new and additional evidences on record to substantiate his claim and could have proven the assessee wrong, seems reasonable. From the AO order, it can be seen that no such course of action was taken by the AO. Therefore, I am of the consid....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that Ld. Commissioner has erred in deleting the addition without appreciating the fact that the nature of the transactions by accepting the documentations presented by the Assessee at face value, without adequately considering the fact that Assessee has failed to prove the creditworthiness and genuineness of the transactions. Further, Ld. Commissioner failed to apply the test of probabilities, the surrounding circumstances and diligent exercise before deleting the addition under consideration. Further, the onus upon the Assessee to establish the genuineness of the creditors, however, the Assessee has failed to discharge its onus and therefore, the impugned order, is liable to be set aside. 8. On the contrary, learned counsel for the Ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....els India (Prop. Motilal Chunilal Mehta) PAN : AAGPK 9639 P * Ledger confirmation * ITR Ack. * Bank statement * PAN * Ledger confirmations * ITR Ack. * Bank statement 5,50,000 3 Kavita Rashmikani PAN: APTPS 2986 P * Ledger confirmation * ITR Ack. * Bank statement * PAN * Ledger confirmations * ITR Ack. *  Bank statement 20,35,333 4 Mishika Rashmikant Savani PAN : CURPS 9988 N * Ledger confirmation * ITR Ack. * Bank statement * PAN * Ledger confirmations * ITR Ack. * Bank statement 15,26,852 5 Shagun Bizloan Finance P. Ltd PAN:AABCS 4022 L * Ledger confirmation * ITR Ack. * Bank statement * PAN * Ledger confirmation * ITR Ack. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntity of the lenders stood proved and loans were also paid subsequently, then no addition is permissible u/sec. 68 of the Act. 9.4 Further, in the case of CIT vs. Ayachi Chandrashekhar Narsangji [2014] 221 Taxman 146 (Guj.) the Hon'ble Gujarat High Court has also considered the identical issue wherein the loan amounts have been repaid by the Assessee in the immediate next financial year and the Department has accepted the repayment of loans, without disputing it and, therefore, the Hon'ble High Court approved the decision of the Tribunal in holding that the matter is not required to be remanded, as no other view would be possible. 9.5 In the case of DCIT vs. Hetal Nitin Shah in ITA No. 1080/MUM/2023, decided on 22/01/2024 the ....