PAN & Bank Statements of lender are not sufficient proof that Unsecured loan is genuine

PAN & Bank Statements of lender are not sufficient proof that Unsecured loan is genuine Relevant Extract of Order is given: 21. The plea

Reetu

Dec 25, 2019

Last update on Dec 25, 2019

PAN & Bank Statements of lender are not sufficient proof that Unsecured loan is genuine Relevant Extract of Order is given: 21. The plea of the Appellant that on filing of the bank statement and PAN details, the burden stood discharged or that it shifted on to the revenue is tenuous and is not correct. The credit worthiness of the transaction cannot be said to be proved merely on the strength of the bank statement or identity of the creditor. The assessee did not produce the income tax return of the lender or any confirmation. The purported confirmation has been found to be only a copy of unsigned account of the creditor. The source of funds has also not been explained. The judgment relied upon by the Appellant - Mod Creations Pvt. Ltd. (supra) is distinguishable on facts and circumstances, as in the said case, there was sufficient material on record including the tax returns, an affidavit stating the source of funds and an affidavit confirming that monies have been advanced to the assessee to prove the credit worthiness of the creditors and the genuineness of the transaction. In the current case, however, the assessee has failed to produce the tax returns of the creditor or any other material to show the creditworthiness. Thus, the credit worthiness and the genuineness of the transaction cannot be said to have been proved so as to shift the onus on the revenue. The stand of the Appellant that since the alleged transaction is made through normal banking channels, it is sufficient to prove the genuineness of the transaction and the credit worthiness of the creditor, cannot be accepted. The identity as well as the credit worthiness of the creditor must be proved. The credit reflected in the bank account of Ms. Jasmine Kochhar Kapoor, is not explained, as a result her credit worthiness is not proved. 22. In view of the above facts, we do not find any infirmity in the impugned order. The findings of fact are against the Appellant, as held concurrently by all the tax authorities. The Appellant has not raised any question of law much less substantial question of law. The present appeal is dismissed both on the ground of limitation as well as on merits as no question of law arises for our consideration under Section 260A of the Act. The pending applications, if any, are also disposed of. Click here to Download the Order Tags : Judgement, High Court For Regular Updates Join : https://t.me/Studycafe

About Author

Reetu

Content Manager

Reetu is a Content Writer with 4+ years of experience in GST, Income Tax, Finance, Company Law, Education and Career Related Content. She is a B.COM (Honrs.) Graduate.