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Issues Involved:
1. Additions on account of advances for the purchase of silver ornaments. 2. Additions on account of loan and deposits. Issue 1: Additions on account of advances for the purchase of silver ornaments The assessee, engaged in the business of silver ornaments and bullion, received advances from three parties: Ambrish Bhai Soni (Rs. 2,00,000), Krishna Verma (Rs. 1,00,000), and Kuldeep Kumar Soni (Rs. 1,00,000). The A.O. noticed discrepancies in the cash book and bank deposits, leading to the addition of Rs. 2,00,000 u/s 68 of the Act. The assessee's explanation that the entry was missed due to oversight was not accepted. The ITAT referred to a previous case (Shri Ram Baboo Agarwal vs. ACIT) and emphasized that the burden of proving the identity, creditworthiness, and genuineness of the transaction lies on the assessee. The assessee failed to provide sufficient evidence, leading to the confirmation of the addition. Issue 2: Additions on account of loan and deposits The assessee received loans from Narayan Das (Rs. 2,00,000) and Nitin Kumar Verma (Rs. 1,00,000). The A.O. found that cash was deposited in the bank accounts of the creditors just before issuing cheques to the assessee, leading to the addition u/s 68 of the Act. The CIT(A) confirmed these additions. The ITAT referred to the jurisdictional High Court's judgment in the case of Smt. Suman Gupta and other relevant cases, concluding that the assessee failed to prove the creditworthiness of the creditors and the genuineness of the transactions. The ITAT upheld the CIT(A)'s order, confirming the addition of Rs. 5,75,000 and deleting the addition of Rs. 2,50,000 where sufficient funds were available in the creditors' bank accounts before issuing cheques to the assessee. Conclusion: The appeal of the assessee was dismissed, confirming the additions made by the A.O. and CIT(A) due to the failure to prove the identity, creditworthiness, and genuineness of the transactions as required u/s 68 of the Act.
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