IT Return, Bank Statement, PAN Card. B/S and P/l account of creditors is enough explain creditors

Last updated: 06 November 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the above case are that while doing the scrutiny assessment the AO has added an amount of Rs.65,96,859/- under the head ‘unexplained loan creditors’ and Rs.2,44,256/- under the head interest paid on the above loan creditors by observing as under :- “It is seen from the records that the assessee showed Rs. 65,96,859/- as unsecured loans Rs. 65,96,859/- and Interest paid thereon of Rs.244256 out of which the assessee debited Rs.180483/- in the P & L A/C. after adjusting the interest from debtors. During the course of hearing, while the A/R of the assessee was asked to produce the loan confirmation and present address of the loan creditors. He failed to file the details of the loan creditors merely a statement of names of some persons/concern, to whom the assesses paid interest. Therefore, in absence of loan confirmation it is established that the assessee showed bogus outstanding liabilities in the balance sheet as on 31.03.09 and debited interest Rs.244256 as interest paid to the loan creditors to reduce the tax liability. Hence, I add back the bogus unsecured loan of Rs. 65,96,859/- U/s.68 as the unexplain cash credit and as the existence of the loan creditors not established and the interest of Rs.244256/- as the interest not paid but only debited in the P&L A/C to reduce the profit.”

Citation :
Nived Anoopkumar Dhandhania, Kolkata (PAN: AIVPD 6867 H) (APPELLANT) Vs I.T.O., Ward-43(3), Kolkata (RESPONDENT)