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TMI Blog2013 (12) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... total unsecured loans, does not suffer from any error of law - The AO didnot failed to exercise his jurisdiction in refusing to summon the file of unsecured creditors other than one who had appeared and was examined - Decided against assessee. - Income Tax Appeal No. - 680 of 2012 - - - Dated:- 7-8-2012 - Hon'ble Sunil Ambwani And Hon'ble Aditya Nath Mittal,JJ. For the Petitioner : Rakesh Ranjan Agarwal,Suyash Agarwal For the Respondent : C.S.C., Income Tax ORDER 1. We have heard Shri R.R. Agarwal assisted by Shri Suyash Agarwal for the appellant-assessee. Shri Dhananjai Awasthi appears for the department. 2. This Income Tax Appeal has been preferred by the appellant-assessee against the judgment and order dated 16.3.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the transaction, the burden shifted of the revenue, which the revenue failed to rebut? (iv) Whether the ITAT was correct to hold that the appellant failed to prove the source of source of the creditors once the appellant has given the names and address of the creditors of A.O and all the creditors were income tax assessee and having paid loan by giving account payee cheques and the interest was paid to the creditors by making TDs on the interest amount, but the revenue did not examined the creditors? (v) Whether the order of the ITAT confirming the addition of Rs. 11, 00, 000/- and Rs. 2, 00, 000/- was perverse having regard to the evidence and material on record.? 4. It is submitted by learned counsel appearing for the appellant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed enquiries into the sources of source, or doubt the genuineness and creditworthiness of the creditors on arbitrary reasoning or mere ipse dixit. His enquiry should be bonafide and concerned with the genuineness of the transactions. In case of share application money, it was held in CIT v. Lovely Exports P Ltd (2009) 319 ITR (St) 5 (SC), that the genuineness of the transaction is to be demonstrated by showing that the assessee had, in fact, received money from the said shareholder and it came from the coffers of that very shareholder. It was further held as follows:- "As far as creditworthiness or financial strength of the creditor/subscriber is concerned, that can be proved by producing the bank statement of the creditor/subscriber s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Abhay Maheshwari, there was very small balance of Rs. 3528/- in his bank account. He was examined on oath and he was not able to give source of cash deposit to the satisfaction of the AO. He was earning hardly one lac rupees and spent 40,000/- to 50, 000/- for household purposes. During his examination on oath, he was not able to satisfactorily explain the availability of funds with him for giving loan to the assessee. In his case, he has filed return of income for the assessment year under appeal at Rs. 1, 02, 850/- (PB-60). In the case of Shri Amit Maheshwari, he was also having small bank balance of Rs. 2429/- before issue of cheque to the assessee and equal amount of the cash credit was deposited in the bank account. He has filed return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny loan to the assessee. Filing of balance sheets, cash flow statements, cash books etc. have no evidentiary value because according to the remand report filed by the AO, those documents were not filed with the return of income. Moreover, no regular books of account have been maintained by any of the creditors and majority of them have shown estimated income in their returns of income. Therefore, such balance sheet, cash flow statements etc. would not support the contention of the assessee that genine credits have been received. The order sheet noted by the AO would also show that the assessee has made no efforts to produce the remaining creditors before the AO. Even in the statement of one of the creditors recorded by the AO, Shri Ambhay M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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