Dismissing the appeal, that on the facts, the Tribunal was justified in relying on the judgments of the Supreme Court ( CIT v .Durga Prasad More ( 1971) 82 ITR 540 (SC)\u00a0 \/ Sumati Dayal v.CIT ( 1995) 214\u00a0 ITR 801 (SC) to reject mere paper work and look at the reality. The assessee in her statement under section\u00a0131\u00a0, could not give the exact purpose for which the loan was taken. She replied that the finances were managed by her husband and she had no idea about them. On being questioned whether she operated her bank account or had any ATM card or debit card and credit card, she had replied in the negative. Therefore, the assessee had no idea of any loan taken from PTPL, one of the 24 parties that appeared in her balance-sheet from whom loans were taken. The loan of Rs. 1 crore was allegedly repaid after nearly one year without any interest. It was not the case of the assessee that she had a personal or business relationship with PTPL or its directors. Merely because the transaction was squared in the next financial year that would not establish that the transaction was genuine and not bogus. The addition made under S.\u00a068\u00a0was proper. ( AY.2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.68:Cash credits \u2014 Authorities entitled to look into surrounding circumstances to find out reality \u2014 Unable to state exact purpose for which loan of Rs. 1 Crore taken and stating her husband looked after all finances \u2014No personal or business relationship of assessee with that party \u2014 Transaction squared in next financial year would not establish genuineness of transaction \u2014 Addition is held to be justified ( Relied , CIT v .Durga Prasad More ( 1971) 82 ITR 540 (SC) \/ Sumati Dayal v.CIT ( 1995) 214 ITR 801 (SC) ) [ S.131 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2209","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-zD","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=2209"}],"version-history":[{"count":4,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2209\/revisions"}],"predecessor-version":[{"id":2866,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2209\/revisions\/2866"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=2209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=2209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=2209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}