Addition u/s 69 deleted as AO failed to call information from bank of loan creditor. Case restored back for verifying creditworthiness of the loan creditor by calling information from the Bank
ABCAUS Case Law Citation:
ABCAUS 2439 (2018) 07 ITAT
The instant appeal was filed by the assessee against the order passed by the CIT(A) in confirming the addition u/s 69 of the Income-tax Act, 1961 (Act).
Assessing Officer found that the assessee has received a loan. The AO issued notice u/s.133(6) of the Act to the loan creditor but no reply was received from him. Therefore, the Assessing Officer added the same to the income of the assessee.
On appeal, the CIT(A) confirmed the action of the Assessing Officer on the ground that the creditworthiness of the loan creditor was not proved by the assessee.
Before the Tribunal the assessee submitted that the assessee filed copy of confirmation of loan wherein, he had given his bank account number but the AO thereafter had made no enquiry from the bank of the loan creditor to verify about the creditworthiness of the loan creditor . Therefore, it was contended that as the assessee had discharged his burden by proving the identity, genuineness of the transaction and creditworthiness by filing bank account no. of the loan creditor, the addition made was not sustainable in law and should be deleted.
The Tribunal opined that in the above facts and circumstances of the case, the Assessing Officer had failed to call for information from the bank of loan creditor to verify the creditworthiness of the loan creditor. However, the assessee had also failed to file details about loan creditor to prove his creditworthiness as to whether the same was out of his earnings or from his borrowings from others.
The Tribunal restored back the matter to the file of the Assessing Officer for verifying the creditworthiness of the loan creditor by calling information from the Bank and thereafter, adjudicate the issue afresh.
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