Delhi HC: Woman's Right to a Shared Household Does Not Allow Indefinite Occupation of In-Laws' Home  ||  Delhi HC: Director Disputes in a Company Do Not Qualify as Genuine Hardship to Delay ITR Filing  ||  Delhi HC: ECI Cannot Resolve Internal Disputes of Unrecognised Parties; Civil Court Must Decide  ||  Bombay High Court: Senior Citizens Act Cannot be Misused to Summarily Evict a Son  ||  Chhattisgarh HC: Service Tax Refund Can't Be Denied on Limitation When Payment Was Made During Probe  ||  Supreme Court: If Tribunal Ends Case For Unpaid Fees, Parties Must Seek Recall Before Using S.14(2)  ||  SC: Article 226 Writs Jurisdiction Cannot be Used to Challenge Economic or Fiscal Reforms  ||  Supreme Court: Hostile Witness Testimony Can't Be Discarded; Consistent Parts Remain Valid  ||  Supreme Court: GPF Nomination in Favour of a Parent Becomes Invalid Once the Employee Marries  ||  Supreme Court: Candidate Not Disqualified if Core Subject Studied Without Exact Degree Title    

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