DCIT Vs Agrawal Global Infratech Pvt. Ltd. (ITAT Raipur)
ITAT Raipur held that addition under section 68 towards unsecured loan from related party cannot be sustained since identity, creditworthiness of lender and genuineness of transaction proved. Hence, appeal of revenue dismissed.
Facts- The case of assessee was selected for complete scrutiny through “CASS”. The assessment came to became completed with addition on account of unexplained cash credit u/s 68 for Rs. 9,06,15,711/- and addition u/s 40a(ia) for non-deduction of TDS for Rs. 58,000/-.
CIT(A) deleted addition u/s. 68 made by AO. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that in support of identity, creditworthiness of the lender and genuineness of transaction, assessee submitted copy of confirmation, ITR and computation of the lender. Also, to substantiate that the actual transaction has taken place, copy of bank statement of the lender showing such entry on 15.07.2018 is placed before us, relevant page no. 29 of APB. In view of such facts, CIT(A) had rightly observed that there is no justification to treat the aforesaid transaction as unexplained cash credit, therefore, the addition u/s 68 cannot be sustained, we, therefore, approve the view taken by Ld. CIT(A).
FULL TEXT OF THE ORDER OF ITAT RAIPUR
