TaxTMI 
TaxTMI 
2025 (4) TMI 2183
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....Income Tax Act, 1961 (hereinafter referred as "Act") vide order dated 23.03.2016. The assessee has raised the following grounds:- 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in law by confirming AO's act of addition of unsecured loan received from MNF Projects Ltd. Of Rs. 42,50,000/- as income of the appellant under section 68 of the Act. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in concluding that creditworthiness and genuineness of the transaction of loan received from MNF Projects Ltd., of Rs. 42,50,000/- remained unexplained whereas the transaction was genuine and party was having creditworthiness to advance the loan to the appellant. ....
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....e, he confirmed the finding of the AO that creditworthiness and genuineness of the loan transaction remained unexplained. As far as Shyam Investment Pvt. Ltd. it was noted that this company had advanced a loan of Rs. 14,10,000/- to the assessee company and on perusal of the submission and documents submitted regarding creditworthiness and genuineness, Ld. CIT(A) held that the lender was having sufficient creditworthiness for giving loan to the assessee, hence, this addition was deleted and credit entry in the name of MNF Project amounting to Rs. 42,50,0000/- was confirmed and the said ground was partly allowed. 4. Aggrieved, Assessee is in appeal before us. 5. We have heard the rival contentions and gone through the facts of the case.....
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....oan is shown in Note No. 11 to Balance Sheet under "Short Term Loans and Advances", which establishes that the lender balance sheet tallies to the extent of Rs. 59,44,489/- and had the capacity to give the loan of Rs. 42,50,000/- to the assessee. On perusing the page no. 45 of the Paper book which is a copy of bank statement, it is noticed that the lender had given loan to the assessee out of the maturity proceeds of its Fixed Deposits during the year. Accordingly, the lender had sufficient creditworthiness to advance the loan to the assessee. In the background of the aforesaid discussions, we are of the considered view that lender had sufficient creditworthiness to advance the loan to the assessee, hence, we delete the addition of Rs. 42,5....