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TMI Blog2013 (12) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... nue. Cash deposit - Held that:- The Bank account of the assesee was forming the part of the regular books of the account maintained by the assessee - The cash deposits were sufficiently explained and also tallied with the books of accounts of the assessee - Decided against Revenue. - ITA No.3884/Mum/2010 - - - Dated:- 18-10-2013 - Sanjay Arora And Sanjay Garg, JJ. For the Appellant : Shri Mandar Vaidya For the Respondent : Shri S K Madhuk ORDER:- PER : Sanjay Garg The present appeal has been preferred by the revenue against the orders of the CIT(A) dated 19/03/2010 relevant to the assessment year 2007-08. 2. The assessee is an individual and proprietor of M/s. S.K. Enterprises engaged in the business of providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that the Assessee has not been able to prove the source of these deposits during the assessment proceedings. 3. The issues, involved in this appeal are discussed separately as below: Ground No. (i): Unsecured loans - Rs.31,00,000/- 3.1 The A.O. noticed that the assessee received new loans of Rs.31,00,000/- during this year. The assessee filed confirmation from M/s. R. Kantilal Co. for a loan Rs.16,00,000/- and from Divya Tej Corporation for Rs.15,00,000/-.The A.O. held that mere filing of confirmation letters would not discharge the burden of proof and the assessee did not file documentary evidences in the form of PAN of loan creditors, copy of return of income and bank statement reflecting the transactions .The AO was of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er he further directed that the A.O. would be free to examine the source in the hands of the creditors and if later on it is found that the assessee had not submitted true and correct particulars, necessary action may be taken in accordance with law. In case the creditors are not assessed to income tax or the loan given to the assessee are not reflected in the income tax statement filed by them, the A.O. shall be free to proceed against them. 3.3 The ld. DR, before us, has submitted that the credit worthiness of the creditors was not proved by the assessee and even PAN numbers of the creditors were not furnished by him before the AO, hence the additions under this head were rightly made by the AO. On the other hand the ld. AR has relied u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on letters filed by the creditors. The AO wrongly observed that the interest of Rs. 3,60,000/- was against loan of Rs.31,00,000/-, which he disallowed in the assessment order and consequently the interest was also disallowed. He therefore deleted the additions made under this head. 4.3 Before us, the ld. DR has submitted that the AO had rightly made the additions under this head as the assessee had failed to submit the necessary details regarding such interest payment. On the other hand the Ld.AR has relied upon the findings of the CIT(A). We have considered the submissions of the Ld. Representatives of the parties. In our view the ld. CIT(A) was right in holding that the assessee had submitted the necessary details to the AO regarding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O. would have proved that the assessee did not have adequate source. He held that the assessee had satisfactory explained the source of cash deposits in the bank account with reference to the cash book and as such deleted the addition so made by the AO under this head. 5.3 Before us, the ld. DR has relied upon the observations of the AO while the Ld. AR has relied upon the findings of the CIT(A) on the issue under consideration. As observed above, the Bank account of the assesee was forming the part of the regular books of the account maintained by the assessee. The cash deposits were sufficiently explained and also tallied with the books of accounts of the assessee. Hence in our view the CIT(A) rightly deleted the additions under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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