Taxpayer discharges Burden to prove Identity, Creditworthiness and Genuineness of Loan Creditors: ITAT deletes Income Tax Addition of 1.17Cr u/s 68 [Read Order]

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) deleted the addition of Rs. 1.17 crore under Section 68 of the Income Tax Act, 1961. Assessee Arjun Manoj Purohit, engaged in construction, proved the identity, creditworthiness, and genuineness of loan creditors. Despite AO's dissatisfaction, the tribunal found the burden of proof met. \r

The AO failed to challenge the primary documents provided by the assessee. Therefore, the tribunal directed deletion of the addition, shifting the onus to the AO to rebut with cogent evidence. \r

The two-member bench comprising Rifafur Rahman (Accountant member) and Aby.T. Varkey (Judicial member) allowed the assessee's appeal.