Case Law Details
Iris Clothings Limited Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that addition u/s. 68 as unexplained cash credit unjustified as assessee has filed all the evidences concerning transactions to establish the identity and creditworthiness of the lenders and to prove the genuineness of the transactions.
Facts- The appellant has mainly contested against the confirmation of addition of CIT(Appeals) of 3,57,85,862/- as made by Assessing Officer under section 68 of the Income Tax Act by treating the unsecured loans raised from 12 entities/companies along with interest of Rs.17,85,862/- as unexplained cash credit under section 68 of the Act.
Conclusion- Held that the assessee has filed all the evidences concerning transactions to establish the identity and creditworthiness of the lenders and to prove the genuineness of the transactions and the ld. Assessing Officer has not carried out any further verification, the addition cannot be made in the hands of the assessee. The AO must examine the issue in the cases of creditors and make the addition there and not in the hands of the assessee. The assessee has discharged its initial burden and the burden shifted on the Assessing Officer to enquire further into the matter by filing the evidences, which he failed to do. Accordingly, we set aside the order of ld. CIT(Appeals) and direct the ld. Assessing Officer to delete the addition.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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