TaxTMI 
TaxTMI 
2026 (1) TMI 1578
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....l 37,28,2361- 4. Amrit Chemtech 4,00,0001- 3. That the Ld. CIT(A) has ignored the confirmations, bank statements and copies of the ITRs, which have been filed in respect of unsecured loans and which is against the documentary evidences furnished by the assessee. 4. That the treatment of such amount, which have been utilized for purchasing of immoveable property as unexplained investment u/s 69 is against the facts and circumstances of the case and, further, the treatment of such sum as unexplained investment u/s 69 r.w. section 115BBE is not in order. 5. That the reply as submitted during the proceedings before the CIT(A) have not been considered properly. 6. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off." 3. Briefly, the facts of the case are that the assessee is deriving salary income and Income from other sources. During the assessment proceedings, it was noticed by the Assessing Officer that the assessee had raised certain loans from individuals and other parties and since according to the Assessing Officer, the assessee could not prove the credit worthi....
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....the Brief Synopsis filed before us, the assessee has given relevant Page numbers, where such evidences, have been placed in the 'Paper Book' alongwith 'source of source' and for the sake of clarity, the relevant 'Brief Synopsis' of the assessee are being reproduced as under: - "Our brief synopsis for unsecured loans taken from 4 Lenders are tabulated as under:- SR. NO. NAME OF THE LENDER AMOUNT 1 M/S SSG Paper Mills LLP, brother of the assessee is partner in above firm. (PAN ACWFS5466N) Received 40,00,000/- 3,00,000/- 4,00,000/- 1,55,300/- 1,55,281/- 50,10,581/- Repaid 16,50,000/- 16,50,000/- 16,50,000/- Amount received during the year and repaid during the same year as per copy of account pages 11 to 12 of the paper book. "Our Submission: The assessee during the assessment proceedings filed following documents before the Ld. AO that duly proves all three elements of section 68 i.e. genuineness, creditworthiness and identity as per details as follows: 1. IDENTITY OF THE LENDER : It is submitted before your goodself that M/s S.S.G. Paper Mills LLP, wherein br....
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.... 39- 40 of the paper book. This shows the assessee was not beneficially as loan as it was repaid within the same year under consideration. 4. Notwithstanding above, it is submitted that, the finding given by the AO as per comment highlighted above, we wish to submit here before your goodself that we have filed all evidences to prove the creditworthiness of the above lender and we have filed the documentary evidences in connection with the funds sourced by the lender i.e. out of his own overdraft limit facility availed by its own which left no doubt on the creditworthiness of the lender. 5. Further, out submission to the finding given by the AO at para 11.14 relating to the source of the source of the lender relevant finding which is as under: 'Further, assessee has also failed to furnish any positive evidence in support of sources of the funds of the lender & no explanation was offered in respect of frequent credit entries in the account of lenders'. 6. It is submitted that, this finding above given by your goodself is not applicable in the case of the assessee as the applicability of proving source of lender i.e. proving source of source....
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....r AY 2018-19. (Copy is placed in Paper Book at Page No. 44). ● Copy of ITR and Computation of income for AY 2018-19. (Copy is placed in Paper Book at Page No. 45-48). 8. Notwithstanding above, it is submitted that, the finding given by the AO as per comment highlighted above, we wish to submit here before your goodself that we have filed all evidences to prove the creditworthiness of the above lender and we have filed the documentary evidences in connection with the funds sourced by the lender i.e. out of available balance, which left no doubt on the creditworthiness of the lender. Thus, from the above, all three elements of section 68 stands prove and no addition is called for. OF SR. NO. NAME OF THE LENDER AMOUNT 3 Deepika Goyal wife of assessee (Sh. Rajiv Goyal) Received 27,06,236/-on 26.07.2017 10,00,000/-on 10.08.2017 9. IDENTITY OF THE LENDER : It is submitted before your goodself that Mrs. Deepika Goyal wife of assessee tax vide PAN: AEJPG6057Q. The wife of the assessee is regularly filing her Income tax returns for past many years, and to prove the identity of the party we are enclosing the copy of ITR, Co....
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....MOUNT 4 M/s. Amrit Chemtech (Partnership Firm, where assessee is partner) PAN No: ABFFA5703Q Received Rs. 2,00,000/- on 27.04.2017 Rs. 2,00,000/- on 10.05.2017 Repaid Rs. 2,00,000/- on 11.12.2017 Rs. 2,00,000/- on 15.12.2017 12. IDENTITY OF THE LENDER : It is submitted before your goodself that M/s. Amrit Chemtech (Partnership Firm), where assessee is partner tax vide PAN: ABFFA5703Q. The firm is filing its Income tax returns for past many years, and the books of the lender is audited, further, to prove the identity of the party we are enclosing the copy of ITR, Computation, Balance Sheet, Profit and Loss account, capital account of the lender, relevant to the year under consideration i.e. AY 2018-19. The following are the documents below that proves the identity of our lender as under: ● Copy of ITR and Computation of income for AY 2018-19 alongwith Balance Sheet, Profit and Loss account alongwith notes to account and the capital account of partners as a proof of identity and relation with the assessee. (Copy is placed at Paper Book at Page No. 94-101). 13.CREDITWORTHINESS & GENUINENESS OF THE LENDER: ● Confirmed....
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....We have gone through the order of Assessing Officer, CIT(A), Brief Synopsis, Paper Book and Judgement set as filed by the assessee and also considered the argument of Ld. DR. We find that besides, the confirmation, copies of the bank account, ITRs of the lenders, the assessee had even proved the 'source of source' of the lenders, as is evident, from the bank account of one such lender, namely SSG Paper Mills, copy of which has been placed at pages 22 to 28 of the Paper Book. The amount as lent to the assessee was transferred from his overdraft account and the relevant amount was transferred from the overdraft account to the current account of SSG Paper Mills, as borne out from the 'overdraft account' at pages, 12,14,17,19,21, which are corresponding to pages, 22, 23, 24, 25,26 and 27 of the regular bank account of SSG Paper Mills and then the amount was advanced to the assessee. The assessee had also placed copy of his bank account at pages 29 to 31, where such amounts as advanced by SSG Paper Mills have been credited to the account of the assessee, through banking channel. 8.1 Similarly, in the case of wife of assessee Smt. Deepika Goyal, her amount of Rs. 27,38....
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....ssessee on pretext of foreign remittance and same was given to assessee - On that basis, Assessing Officer made addition of Rs. 1.50 lakhs to assessee's income by invoking provisions of section 68 - On appeal, Commissioner (Appeals) sustained addition -However, on second appeal, Tribunal, on basis of material on record, came to conclusion that amount in question had been repaid to "NT through banking channel within a period of 15 days and said transaction was a bona fide transaction and provisions of section 68 were not attracted - Whether on facts, Tribunal was justified in deleting addition made by Assessing Officer - Held, yes [In favour of assessee]" c. Judgment in the case of PCIT vs. Merrygold Gems (P.) Ltd. as reported in T20241 164 taxmann.com 764 (Gujarat) dated 11.06.2024. INCOME TAX : Where amount of loan received by assessee was returned within same financial year, appellate authorities had rightly deleted addition made under section 68 in respect of such loan Section 68 of the Income-tax Act, 1961 - Cash credit (Scope of provision)-Assessment year 2016-17-Assessing Officer made addition of certain amount to assessee's income on account of unse....