Assessee has received\u00a0 unsecured loan. The assessee has provided\u00a0 lender’s confirmation, PAN, and proof of transactions through regular banking channels. However, despite issuance and service of a summons under Section 131 by Assessing Officer, lender did not respond.\u00a0 Assessing Officer treated loan as an unexplained cash credit. CIT(A)\u00a0 confirmed the order of the AO. On appeal the Tribunal\u00a0 held\u00a0 that the\u00a0 assessee had furnished necessary documents to prove 3 ingredients of section 68 i.e. identity of creditors, genuineness of transaction and creditworthiness of lenders and lender was duly assessed to tax and had even furnished confirmation and loan was received by assessee in regular banking channels.Merely because summons had not been responded by said lender, no adverse inference could be drawn on assessee. Addition is deleted.(AY.\u00a0 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Produced,identity, genuineness of transaction and creditworthiness, along with confirmation and proof of regular banking channel-Lender’s failure to respond to summons alone did cannot be the ground to treat the loan as cash credits. [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":[21],"tags":[],"class_list":["post-55086","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eku","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55086","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=55086"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55086\/revisions"}],"predecessor-version":[{"id":55087,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55086\/revisions\/55087"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}