A. Godwin Maria Visuvasam Vs. ITO (ITAT Chennai)
Merely furnishing of confirmation letter by a creditor, as it again well settled, does not would at best only establish identity of the creditors. There was nothing on record establishing creditworthiness of the creditors and/or genuineness of impugned loans and advances in the instant case. Therefore, AO was justified in making addition under section 68.
Full Text of the ITAT Order is as follows:-
This is an Appeal by the Assessee directed against the Order by the Commissioner (Appeals)-I, Coimbatore (‘Commissioner (Appeals)’ for short) dated 14-3-2014, partly allowing the assessee’s appeal contesting its assessment under section 143(3) of the Income Tax Act, 1961 (‘the Act’ hereinafter) dated 30-12-2009 for assessment year (assessment year) 2007-08.
The facts of the case are that the assessee, an individual in civil construction business (through his proprietary concern, M/s. Goodwin Constructions), was found in the course of the assessment proceedings to have an aggregate outstanding credit balances of Rs. 29,50,300 in the balance sheet of Goodwin Constructions as at the year-end under the account head ‘Advance from customers’, of which Rs. 24 lacs was received during the current year from various persons, as under: —
(Amt. in Rs.)
