TaxTMI 
TaxTMI 
2025 (4) TMI 1985
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.... as under:- "1. The Ld. CIT(A) erred in confirming addition of Rs. 1,44,67,000 u/s 68 of loan received from M/s Dyaneshwari Multi-State Urban Co-operative Credit Society Ltd. (DMSUCCSL). 2. a. The Ld. CIT(A) erred in confirming addition by relying on overwhelming evidence which point that the entire transaction is sham and make believe, but which was never provided to the appellant. b. The Ld. CIT(A) erred in confirming addition by placing reliance on statements, whose cross examination was never provided to the Appellant. c. The Ld. CIT(A) erred in holding that Right to Cross Examine is not absolute in nature and is discretionary. d. The Ld. CIT(A) erred in holding that when Statements are relie....
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....e relevant documentary evidence brought on record duly considered in the light of Rule 18(6) of the ITAT Rules. 4. Briefly stated the facts of the case are that the assessee filed its return of income on 14/03/2019 declaring total income at Rs. 65,15,970/-. The return was selected for scrutiny assessment and accordingly statutory notices were issued and served upon the assessee. 5. During the course of scrutiny assessment proceedings, the AO noticed that the assessee has disclosed unsecured loans of Rs. 1,44,67,000/- which comprises of principal amount of loan of Rs. 1,40,00,000/- and interest of Rs. 4,67,000/-. This amount was shown as loan from Dhyaneshwari Multistate Urban Cooperative Credit Society Ltd. (DMUCCSL). The following qu....
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....ow you were granted loan at such a low interest rate of 8% compared to the then prevailing market rate. * It is seen from your submission that interest was paid by you on 06/04/2017 and on 28/04/2017 alongwith repayment of principal. Please explain why interest was neither charged by the Society nor paid by you periodically, i.e. monthly, quarterly, etc. basis. * If you have any contention regarding genuineness of your loan transaction with DMSUCCSL which you have not submitted before you may do so now"." 5.1 The assessee replied to the queries raised by the AO which did not find favour with the AO, who heavily relied upon the statement of Shri Nilesh Kamble, manager of the society. Drawing support from the statement of....
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....ind that not only the taking of loan but also the repayment of loan has been doubted by the AO. The repayment of loan is also reflected in the bank statement of Axis Bank which is on record. 12. The provisions of Section 68 of the Act puts the primary onus on the assessee to explain the credit entries in its books of accounts for which the assessee is required to prove (i) Identity (ii) Capacity of the lender and (iii) genuineness of the transactions. Capacity and genuineness of the transactions have to be proved prima facie which means that all that is required, is to prove what is apparent and if the apparent in not real then the onus shifts to the revenue. 13. The entire quarrel revolves around the statement of Shri Nilesh Kamble. ....
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....es working capital of the company . We refer to your application for loan and subsequent clarification and assurance advised to us by you. We have considered your request for Working capital Loan and sanctioned the loan on the following terms and conditions :- 1. Type of Facility/Loan : Working Capital Loan 2. Amount of Loan/Limit :1, 40, 00, 000 (One Crore Forty Lakhs only) 3. Security : UnSecured 4. Margin : Not Applicable 5. Rate of Interest : 8% 6. Repayment : As per Contract Product Specific Terms and Conditions :- 1. The various statutory permissions required under the law have to be obtained (if not already obtained) and copy of the same to be submitted to the Society before release of loan. 2. All actual expen....