ACIT Vs L G Choudhary (ITAT Ahmedabad)
ITAT Ahmedabad held that addition towards unsecured loan is liable to be deleted since assessee has duly discharged its onus of proving the genuineness of the unsecured loan with documentary evidences. Accordingly, appeal of the assessee allowed to that extent.
Facts- The assessee is a partnership firm engaged in the business of Civil Contractor. During the impugned year, survey u/s.133A of the Act was conducted on the assesee’s business premises on 17.09.2016. Thereafter, assessment was framed disallowance of purchase admitted to be bogus by the assessee during survey amounting to Rs.46,43,534/-; purchase made from parties who were unresponsive to notices issued u/s.133(6) of the Act Rs.98,90,725/-; parties whose PAN number and correct addresses were not furnished by the assessee Rs.8,76,48,306/-. Besides addition of unsecured loans amounting to Rs.1,21,50,000/- was also made finding them to be not genuine.
CIT(A) partly allowed the appeal. Being aggrieved, both revenue and assessee has preferred the present appeal.
Conclusion- Held that the PAN no. of the said party and also copies of ledger account of succeeding years showing re-payment of the impugned loan all receipts and repayment of the loan has been demonstrated to have made through banking channel. In the light of the same, we are unable to agree with the Ld. CIT(A) that the assessee has failed to discharge its onus of proving the genuineness of the impugned loan taken of Rs.12 lakhs. The assessee having sufficiently demonstrated the genuineness of the impugned transaction with documentary evidences and none of the authorities below having found any infirmity in the evidences so submitted by the assessee. We hold that the assessee had duly discharged its onus of proving the genuineness of the unsecured loan and accordingly, direct the deletion of the addition made of Rs.12 Lakhs. Thus, the said ground of the assessee’s appeal is, therefore, allowed.
