Case Law Details
K.P. Manish Global Ingredients Pvt.Ltd. Vs ACIT (ITAT Chennai)
Conclusion: Once an assessee discharged its burden, then burden shifts to AO to prove otherwise that said transaction was nothing but undisclosed income of the assessee. In this case, AO had not brought on record any evidence to prove that said sum was undisclosed income of assessee. Therefore, AO was completely erred in making additions towards unsecured loans received from three companies of assessee group.
Held: AO had made additions towards unsecured loan received from three firms belonged to assessee group on the ground that said loan transactions were nothing but accommodation entries of assessee own unaccounted income in form of unsecured loans. It was held that assessee had discharged its burden caste upon u/s. 68 by filing various details including financial statement of creditors, their bank statements and confirmation letters to prove transactions. Once an assessee discharged its burden, then burden shifts to AO to prove otherwise that said transaction was nothing but undisclosed income of the assessee. In this case, AO had not brought on record any evidence to prove that said sum was undisclosed income of assessee. Therefore, AO was completely erred in making additions towards unsecured loans received from three companies of assessee group. AO as well as CIT(A) without appreciating the evidences filed by assessee had simply made additions on suspicious ground that said sum was undisclosed income of assessee. Hence, the order of CIT(A) was set aside and AO was directed to delete additions made towards unsecured loans received from three entities.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the assessee is directed against the order of the learned CIT(A)-9, Chennai dated 15.06.2017 and pertains to assessment year 2009-10.
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