NIMP Healthcare Pvt. Ltd. Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal, Ahmedabad, allowed the assessee’s appeal and deleted an addition of ₹1,35,48,800 made under Section 68 of the Income-tax Act for Assessment Year 2014-15. The dispute arose after the Assessing Officer treated unsecured loans reflected in the assessee’s books as unexplained cash credits, alleging that the assessee had failed to establish the identity, creditworthiness, and genuineness of the creditors. The assessee had, however, furnished ledger accounts, confirmations, PAN details, income tax return acknowledgements, bank statements, and explanations that part of the amounts represented share application money received in earlier years and later converted into unsecured loans.
The Tribunal found that the assessee had discharged the initial burden under Section 68 by providing substantial documentary evidence establishing the identity of the creditors, who were identifiable income-tax assessees possessing valid PANs. It also observed that the transactions were routed through banking channels and there was no finding by the Assessing Officer that the supporting bank records were fabricated or that the transactions involved circulation of funds or accommodation entries. The Tribunal held that mere non-furnishing of confirmations in isolated cases could not justify additions when other evidences, including PAN details and banking records, were already available on record.
