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TMI Blog2014 (5) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... itworthiness - the burden shifts to the AO to prove that loan is not genuine, either because creditors are not identifiable or they do not have creditworthiness - From the assessment order it is clear that the AO has not done any such exercise to establish on record that the credits are unexplained – thus, there is no reason to interfere with the finding of the CIT(A) – Decided against Revenue. - ITA. No. 1804/Hyd/2013 - - - Dated:- 7-5-2014 - Shri B. Ramakotaiah, A.M. And Saktijit Dey, J.M.,JJ. For the Petitioner : Mr. B. Yadagiri For the Respondent : None ORDER Per Saktijit Dey, J.M. This appeal by the department is filed against the Order of the CIT(A)-VI, Hyderabad dated 18.09.2013 for the A.Y. 2008-09. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under section 148 of the Act. In course of the assessment proceedings, the A.O. noticed that the assessee has invested towards his capital in different firms as under : M/s. Sigma Constructions Rs. 3,50,000/- M/s. Vista Constructions Rs.24,00,000/- M/s. New Vista Constructions Rs.60,50,000/- Total Rs.88,00,000/- 3. When the A.O. called upon the assessee to explain the source of such investment, the assessee explained that investment was made by him on availing loans from few persons as under : Sri Mohd. Irfanuddin Rs.50,50,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of the A.O. in the remand report and other materials on record, the CIT(A) held that laon of Rs. 12 lakhs availed from Mr. Khuddus and Mr. Faizuddin stand explained and accordingly, deleted the addition made by A.O. of the said amount. The finding of the CIT(A) in this regard is reproduced hereunder : 4.7. As regards to the loan of Rs.10,00,000 from Mr. Mohd. Abdul Khuddus is concerned, the same was confirmed by Mr. Khuddus, though originally the loan was wrongly shown in the name of Dr. Gopal Rao. This was explained by the appellant and not disputed by the A.O. The confirmation by Mr. Khuddus indicates that the loans are obtained through banking channel with the cheque number and bank account details furnished. It is also submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee having discharged the initial burden cast upon him to prove the genuineness of loan transaction by identifying the creditors, furnishing evidence with respect to their creditworthiness, the burden shifts to the A.O. to prove that loan is not genuine, either because creditors are not identifiable or they do not have creditworthiness. From the assessment order it is clear that the A.O. has not done any such exercise to establish on record that the credits are unexplained. In this view of the matter, we do not find any reason to interfere with the finding of the Ld. CIT(A). The ground raised by the Revenue is dismissed. 6. In the result, appeal of the Revenue is dismissed. Order pronounced in the open Court on 07.05.2014. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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