[aaykarbhavan] Addition on creditors deleated as assessee discharged his ounus

ITAT HYDERABAD - Income Tax

ITO, Ward 7(1), Hyderabad Versus Sri Syed Aneesuddin, Hyderabad

Unexplained credits – Creditworthiness of creditors not proved – Held that:- The assessee has not only produced confirmation letter of the creditor Mr. Mohd. Abdul Khuddus confirming loan of Rs. 10 lakhs but the loan transaction was through banking channel - Assessee has also furnished income tax assessment particulars of the creditor - in respect of loan of Rs. 2,00,000/- from Mr. Faizuddin also assessee has furnished confirmation from the creditor - the assessee having discharged the initial burden cast upon him to prove the genuineness of loan transaction by identifying the creditors, furnishing evidence with respect to their creditworthiness - the burden shifts to the AO to prove that loan is not genuine, either because creditors are not identifiable or they do not have creditworthiness - From the assessment order it is clear that the AO has not done any such exercise to establish on record that the credits are unexplained – thus, there is no reason to interfere with the finding of the CIT(A) – Decided against Revenue

 

Regards

Prarthana Jalan

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