NCLAT: Creditors May Choose to Proceed Against One or Multiple Guarantors as They See Fit  ||  NCLAT Delhi: Authority Can Enforce Arbitral Award Via Resolution Professional Under IBC Section 60(5)  ||  Bombay HC Rejects Plea For 'Eco-Friendly' Ganesh Idol Immersion, Upholds Citizens' Right to Clean Wat  ||  Delhi HC:WhistleblowingDoesn’t Grant Employees Immunity from Transfer Orders  ||  Delhi HC: Higher Compounding Fees Don't Apply on Second TDS Default Plea If First Was Rejected  ||  NCLAT Rules Guarantor’s Liability Can Exceed Cap Set in Guarantee Deed on Principal Borrower’s Debt  ||  NEET-UG 2025: Supreme Court Dismisses Plea Claiming OMR Sheet Tampering by Candidate  ||  SC Refuses Interim Bail to Shabir Ahmed Shah; Issues Notice on His Bail Petition  ||  SC Summons MCD Commissioner over Debris at Lodhi-Era Gumti, Asks, "Is There an Ego Issue?"  ||  SC Grants Interim Relief to YSRCP’s Pinnelli Ramakrishna Reddy in Double Murder Case of TDP Activists    

Sri Birendra Kumar Mohanty vs. JCIT - (Income Tax Appellate Tribunal) (14 Dec 2022)

When the creditors have appeared personally and confirmed the transaction, they cannot be disbelieved

MANU/IF/0142/2022

Direct Taxation

The assessee is an individual, who is deriving salary income and interest in firm. It was the submission that the assessee had acquired certain immovable property during the relevant assessment year for a consideration of Rs.30,40,677. The assessee was called upon to prove the source of the said investment. The assessee had submitted that he has taken loan of Rs.14 lakhs from seven persons. The Assessing officer had treated the genuineness of the transaction as bogus. It was the submission that as the five persons appeared before the AO and confirmed the loan given to the assessee and two persons through sworn the affidavits having given the loan to the assessee, no disallowance was called for. It was the submission that the learned CIT(A) without appreciating the contention of the assessee had rejected the appeal of the assessee.

The Assessing Officer has called for the creditors and five of the creditors have appeared in persons and have confirmed the transaction before the AO. Two persons were unable to appear as they were out of station but filed affidavits sworn by them. When the creditors have appeared personally and confirmed the transaction, then unless there is substantial proof to show that what has been mentioned by the creditors is false, they cannot be disbelieved. It is also to be understood that giving false affidavit is also punishable. Such action has not also been initiated by the Assessing Officer.

In instant circumstances, as the creditors have appeared and have also confirmed the transaction and in respect of two creditors, the affidavits filed, present Tribunal are of the view that, the credits as claimed by the assessee is substantiated and the addition as made by the AO and confirmed by the learned CIT(A) stands deleted. Appeal of the assessee is allowed.

Tags : ASSESSMENT   ADDITION   LEGALITY  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved