| Question And Answer | |
|---|---|
| Subject: | Huge amount un secured loans sec 68,69 provision applicable |
| Category: | Income-Tax |
| Querist: | Kollipara sundaraiah |
| Answered by: | KSA Legal Chambers |
| Tags: | 69, cash credits, s. 68, Section 68, section 69, undisclosed income |
| Date: | November 26, 2024 |
Sir,
One of the it person new residential house construction estimate Value rs:1.50 crores
Funds from bank loans rs:1 crores.
Different persons each one @19,000/- total amount rs:50 lacs received for construction purpose
Question:
Assessess un secured loans huge rs:50 lacs amount received from different persons sec 68,69 provision applicable for it act.
In case query is received from the tax department , the assessee has to establish , identity credit worthiness and genuineness of the transaction . The assessee may have to file the confirmation letter including the PAN . It is desirable for the assessee to keep the documents signed by the party .In Gaurav Triyugi Singh v. ITO (2020) 423 ITR 531 / 188 DTR 128 / 315 CTR 748 (Bom.)(HC) the assessee had taken unsecured loan from various persons. The Assessee has filed the confirmation letters. The AO has doubted the genuineness of the loan and made addition as cash credits. The Tribunal is also confirmed the addition. On appeal by the assessee allowing the appeal the Court held that the assessee need not prove the source of the source. Accordingly the addition was deleted. Followed PCIT v Veedhata Tower Pvt Ltd (2018) 403 ITR 415 (Bom.) (HC).