Case Law Details
Himanshu Bhardwaj Vs ITO (ITAT Delhi)
It is not in dispute that all the lenders are Income tax assesses and they have confirmed that they have lent money to the assessee. Each one of the lenders have lent 19,000/- rupees to the assessee. The list of lenders show that all of them are either relatives like father, mother, brother, cousin brother, father’s sister (Bua Ji) brother’s wife (Tai Ji) and friends It is observed that in the remand proceedings the Assessing Officer never asked for any supporting evidences to establish the sources for lending the un-secured loans to the assessee. The assessee has filed confirmations as also the Income tax acknowledgements in proof of filing the returns of income by the lenders. The assessing Officer could have called for the information or could have issued summons under Section 131 of the Act to examine the sources of the lenders and to record their statements. He never made any enquiries with lenders in the remand proceedings. All the lenders are either relatives or friends and they have lent Rs.19,000/- each to the assessee. The genuineness and the creditworthiness of the lenders cannot be disbelieved as the lenders filed returns and also filed confirmations. Therefore, I am of the view that the assessee has proved the genuineness, identity and creditworthiness of the lenders and, therefore, the Assessing Officer is directed to delete the addition made towards bogus un-secured loans.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-14, New Delhi, [hereinafter referred to CIT (Appeals)] dated 21.12.2017 for the assessment year 2014-15 in sustaining the addition of Rs.3,65,000/- made as bogus un-secured loans.
2. Facts in brief are that the assessee is an Individual, filed return of income on 16.09.2014, declaring income of Rs.3,01,030/-. The assessment was completed under Section 143(3) of the Income Tax Act, 1961 (the Act) on 16.12.2016 determining the income at Rs.6,66,033/-. While completing the assessment the Assessing Officer noticed that assessee has taken un-secured loans amounting to Rs.3,65,000/- from various persons and the assessee was required to file confirmations and addresses of the persons from whom un-secured loans have been taken. It appears that the assessee did not file either confirmations nor furnished addresses of the persons in spite of several opportunities. Thus, the Assessing Officer treated Rs.3,65,000/- as bogus un-secured loans and added to the income of the assessee.
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