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TMI Blog2014 (6) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... numbers but also the copy of their assessment order and bank accounts - there were certain fresh evidences furnished before the CIT(A), he called for the remand report from the Assessing Officer. The assessee produced the confirmation, copy of bank account, copy of income tax return of the creditors and, on verification by the AO by calling the information u/s 133(6) and also through the Inspector of Income-tax, no adverse material was found - merely because the creditors were not produced by the assessee, it cannot be said that the assessee was not able to discharge the onus of proving the cash credit which lay upon him - the assessee has discharged the initial onus of proving the cash credit which lay upon him – Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ount statement in case of M/s Coronet Vyappar (P) Ltd. and M/s Vollent Investment & Finance Ltd. highlighting the debits relating to appellant company. A remand report on these fresh evidences was called from the AO which has since been received vide letter dated 25.04.2011. In this remand report the AO has submitted that the enquiries conducted in both the above cases have revealed that the appellant company has received the amount of Rs.3 crores from M/s Coronet Vyappar (P) Ltd. vide cheque No.527218 dated 06.08.2005 drawn on HDFC Bank, K.G. Marg, New Delhi and that this creditor is being assessed to income tax at ITO, Ward-6(1), Kolkata. Likewise in the case of M/s Volllent Investment & Finance Ltd. the appellant has received Rs.1 crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is heavy and he has to establish the creditworthiness of those parties so as to prove that those parties were capable of giving such a huge loan. 7. Learned counsel for the assessee, on the other hand, stated that both the creditors are company and both are assessed to tax. During assessment proceedings, the assessee has duly produced their confirmations which contained their permanent account numbers. The loan has been received through cheque. Before the learned CIT(A), the assessee produced their assessment order as well as bank statement as a fresh evidence. Learned CIT(A) called for the remand report from the Assessing Officer and, in the remand report, after verification, the Assessing Officer has not found any material a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven the names and addresses of the alleged creditors. It was in the knowledge of the Revenue that the said creditors were income-tax assessees. Their index numbers were in the file of the Revenue. The Revenue, apart from issuing notices under section 131 at the instance of the respondent, did not pursue the matter further. The Revenue did not examine the source of income of the said alleged creditors to find out whether they were creditworthy. There was no effort made to pursue the socalled alleged creditors. In those circumstances, the respondent could not do anything further. In the premises, if the Tribunal came to the conclusion that the respondent had discharged the burden that lay on it, then it could not be said that such a conclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity, creditworthiness and genuineness of the transaction. Enquiries were conducted by the undersigned by deputing the Inspector of this office and calling for information u/s 133(6) of the Income Tax Act, 1961. The findings are summarized as under:- 1. M/s Coronet Vyapaar Pvt.Ltd. During the period under consideration, the assessee company has received an unsecured loan to the tune of Rs.3.00 crore from M/s Coronet Vyapaar Pvt.Ltd. Necessary enquiries have been conducted and various information has been called for. The enquiries so conducted revealed that the assessee received the amount of Rs.3.00 crores from Coronet Vyapaar Pvt.Ltd. vide cheque no.527218 dated 06.08.2005 drawn on HDFC Bank, K.G. Marg, New Delhi. M/s Coronet Vyapaar Pv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account, copy of income tax return of the creditors and, on verification by the Assessing Officer, by calling the information under Section 133(6) and also through the Inspector of Income-tax, no adverse material was found. On the other hand, the assessee was found at the address and submitted the details called for by the Assessing Officer. Therefore, merely because the creditors were not produced by the assessee, it cannot be said that the assessee was not able to discharge the onus of proving the cash credit which lay upon him. That in the case of Orissa Corporation P.Ltd. (supra), the assessee was unable to produce the creditors and even on enquiry by the Assessing Officer, the persons were not available at the given address. Despi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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