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TMI Blog2013 (10) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in setting aside the well-considered order of the 1st appellate authority and sustaining the additions to an extent of 10,00,000/- ignoring the assessee's explanation? It appears that the Assessing Officer added a sum of Rs,10,00,000/- to the income of the assessee, which was not shown in the income tax returns of the assessee. The Commissioner of Income Tax (Appeals) however, upset the finding of the Assessing Officer and held that the assessee has received the income by way of loan from two creditors. The Commissioner of Income Tax (Appeals) having noted the bank account of the respective creditors as well as the income tax returns filed by the assessee, believed in his own way that the transaction is a genuine one. It is settled pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et the fact finding of the Commissioner of Income Tax (Appeals). Therefore, we need to record what the learned Tribunal has recorded in this regard, while upsetting the findings of the Commissioner of Income Tax (Appeals), which is as follows: "From the materials on record, we find that immediately prior to the issuance of the cheque by the concerned creditors to the assessee, cash deposits of even amounts were made into the respective bank accounts of the creditors. The incomes disclosed in the returns filed for the assessment year 2007-08 by the concerned creditors, Shri Somraj and Smt. Hema Soni, were very meager, i.e., Rs.1,03,150 and Rs.1,30,708 and the same do not infuse confidence as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition made by the Assessing Officer. This approach of the CIT(A), in our considered view, is not correct and hence cannot be accepted." In view of the aforesaid fact finding recorded by the Tribunal, we have to see whether the decisions cited by the learned counsel are helpful in this case or not. It is well established that in a case of this nature, the initial burden is upon the assessee to show prima facie (1) the identity of the creditor or subscriber; (2) the genuineness of the transaction, namely, whether it has been transmitted through banking or other indisputable channels; (3) the creditworthiness or financial strength of the creditor or subscriber; (4) if relevant details of the address or PAN Identity of the creditor or subscr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal, in this case, after analyzing the materials produced by the assessee, found that the so-called two creditors had no creditworthiness and this is reflected from the accounts as well as from the tax returns. It is impossible to accept that this transaction is genuine when the income tax returns show a meager amount of Rs.1.00 lakh and odd and how the creditors could advance huge sums of Rs. 5.00 lakhs each; and wherefrom these huge amounts have come is not clear. Moreover, it was not also clear from the bank records that there has been any transaction subsequently. Therefore, the materials produced before the revenue officials by the assessee were not sufficient to adjudge that the assessee has discharged his burden. Learned counsel furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.6,00,000/- to the assessee. So far as loan taken from Janata Construction Co., is concerned, nothing was produced before the Assessing Officer to prove the credit-worthiness of the concerned creditor. It is evident from the material on record that the assessee and his other family members have indulged in availing unsecured loans from certain persons in a systematic and organized manner, so as to explain away the unexplained investments made by them in the purchase of the immovable property. As for the case-law relied upon by the learned counsel for the assessee, it is pertinent to note that the ratio of a decision is applicable in respect of the facts decided in that case." The CIT (A) by mainly considering the fact that the creditors h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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