2026 (2) TMI 868

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....50 of the Income-tax Act, 1961 ("the Act" for short) for Assessment Year 2014-15. 2. The sole ground raised by the assessee reads as under:- "On the facts and circumstances of the case and in law, the Ld. CIT(A) has grossly erred in sustaining the addition of Rs.60 lakhs made by the A.O. u/s 68 of the Act when there is no justification for making impugned addition. The same deserves to be deleted." 3. When the appeal was called for hearing, none appeared on behalf of the assessee. An adjournment application was filed. Considering that the assessee had already filed a Statement of Facts-cum-Synopsis and the issue could be decided on the basis of material available on record, the adjournment application was rejected and the app....

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....edings, the assessee furnished ledger account of the lender in the assessee's books, copy of bank statement of the lender maintained with Kukarwada Nagrik Sahkari Bank Ltd, PAN of the lender and the bank statement of the assessee evidencing receipt and repayment. It was also submitted that the lender is a proprietary concern of Shri Patel Anilkumar Prahladbhai, having PAN AHVPP6440J, who had filed return of income for A.Y. 2014-15 declaring business income and substantial turnover. According to the assessee, identity, genuineness of the transaction and creditworthiness of the lender stood fully established and the addition was made merely on surmises. 8. The Ld. DR relied upon the orders of the Assessing Officer and the Ld. CIT(A) and su....

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....and immediately transferred to the assessee on the same day. Once the transaction is routed through banking channels and the flow of funds is clearly established, in our opinion, the assessee cannot be asked to explain the source of the source. 9.2 Further, the fact that the entire loan amount has been repaid in the subsequent financial year through banking channels, which has been accepted by the Department, is a strong corroborative circumstance supporting the genuineness of the transaction as well as the existence and capacity of the creditor. This principle has been upheld by the Hon'ble Gujarat High Court in Ayachi Chandrasekhar Narsangji [221 Taxmann 146], wherein it was held that once repayment of loan is accepted in subsequent ye....