Case Law Details
U Toll Corporation Ltd Vs ACIT (ITAT Varansi)
Introduction: The case of U Toll Corporation Ltd vs ACIT (Income Tax Appellate Tribunal, Varanasi) revolves around the assessment year 2013-14 and concerns the addition of unsecured loans by the Assessing Officer. The appellant challenges the decision of the Commissioner of Income Tax (Appeals) [CIT(A)] regarding the addition of Rs. 40,00,000 and Rs. 30,00,000 in the names of Kumar Nagendra and Munna Kumar, respectively.
Detailed Analysis:
1. Unsecured Loan Dispute: The crux of the matter lies in the unsecured loans claimed by the appellant. The Assessing Officer contended that the appellant failed to prove the identity, creditworthiness, and genuineness of the loan transactions, leading to the additions under section 68 of the Income Tax Act.
2. Kumar Nagendra’s Loan: Regarding the Rs. 40,00,000 loan from Kumar Nagendra, the authorities noted cash deposits preceding the issuance of a Demand Draft (D.D.) in favor of the assessee. The appellant, while providing bank statements, struggled to prove the creditworthiness, especially considering multiple cash deposits shortly before the D.D.
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