The Pune Bench of Income Tax Appellate Tribunal ( ITAT ) has held that no evidence adduced to prove creditworthiness of creditors and confirms addition made by CIT (A).
The appellant, Nitin Madhukar Rathi, during financial year received unsecured loan from various parties. The Assessing Officer alleged that the creditors have no creditworthiness to lend such loan amount to the assessee and added Rs.60,00,000/- to the total income of the assessee.
On appeal CIT(A) based on the submissions of assessee and evidences produced with regard to cash deposits given partial relief to an extent of Rs.22,00,000/-with respect to two creditors and for remaining creditors the CIT(A) hold that they have no creditworthiness to lend such loan amount to the assessee which was said to have been admitted by the authorized representative on behalf of the assessee. Aggrieved, assessee filed appeal before ITAT.
The Tribunal has held that “no evidence submitted in support of the grounds filed and therefore, the order of CIT(A) is justified in confirming the addition of Rs.38,00,000/-. Thus, the grounds raised by the assessee fails and are dismissed”.
The Coram of Mr. R.S. Syal, Vice President and Mr. S.S. Viswanethra Ravi, Judicial Member has held that
Mr. M.G. Jasnani appeared for revenue.
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