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TMI Blog2014 (6) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the learned CIT(A) ought to have upheld the order of the Assessing Officer. 4) It is, therefore, prayed that the order of the CIT(A) may be set-aside and that of Assessing Officer may be restored to the above extent. 2. This appeal is restored by the Hon'ble High Court of Gujarat vide order dated 03/12/2013 passed in Tax Appeal No.584 of 2013. Before the Hon'ble High Court, the grievance of the assessee was that number of decisions of the Jurisdictional High Court as well as the learned Tribunal were relied upon and cited on on behalf of the assessee, however, without considering and/or dealing with the decisions relied upon by the assessee, this Tribunal observed in one line in para-9 that "due to these reasons, the case laws relied upon by the assessee do not come to its rescue". The Hon'ble High Court has directed to pass order afresh in accordance with law and on merits considering and/or dealing with the decisions which may be relied upon by either of the parties and pass a speaking order. 3. During the course of hearing, the ld.counsel for the assessee submitted that a miscellaneous application No.36/Ahd/2013 was also filed by the assessee and this Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me tax return the transaction or that they had not disclosed the aforesaid amount, the AO could call for further explanation from the assessee to prove the genuineness of the transaction or creditworthiness of the same. However, without verifying such fact from the income tax return of the creditors, the action taken by the AO in examining the lenders of the assessee was a wrong approach. He submitted that the Hon'ble High Court has categorically held that If the AO of those creditors are satisfied with the explanation given by the creditors as regards those transactions, the AO in question has no justification to disbelieve the transactions reflected in the account of the creditors. He also placed reliance on the judgement of Hon'ble Rajasthan High Court rendered in the case of Aravali Trading Co. vs. Income Tax Officer reported at (2000) 220 CTR (Raj) 622. He submitted that the Hon'ble Rajasthan High Court has held that neither the provisions of section 68 nor on general principle, it can be said that once the existence of persons in whose name credits are found in the books of the assessee is proved and such persons own such credits with the assessee still the assessee is to fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dren Trust reported at (1997) 225 ITR 640 (M.P.) and also the judgement of Hon'ble High Court of Gauhati rendered in the case of P.K. Sethi vs. CIT reported at (2006) 286 ITR 318 (Gau). In support of the contention that the creditors are income-tax assessees and the transactions were accepted as genuine in the cases of creditors. Thus, no inference could be drawn that these are fake transactions. Further, the ld.counsel for the assessee relied on the judgement(s) of Hon'ble Jurisdictional High Court rendered in the case of CIT vs. Apex Them Packaging (P.) Ltd. reported at (2014) 42 taxmann.com 473 (Gujarat) and of CIT vs. Ayachi Chandrashekhar Narsangji reported at (2014) 42 taxmann.com 251 (Gujarat). The ld.counsel for the assessee submitted that the ld.CIT(A) has given a very detailed finding and no fault can be found in the order of the ld.CIT(A). 5. On the other hand, ld.Sr.DR pointed out that the AO has categorically given a finding that the creditworthiness of the creditors could not be proved. He submitted that the entire transactions raise suspicion about the conduct of the assessee. He submitted that the cash was deposited into the bank accounts and subsequently, the cheq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditworthiness and (c) genuineness of the transaction, when are considered, it cannot be disputed that all the three of them require independent consideration and yet they are not mutually exclusive or can be considered in isolation. It hardly needs to be specified that the well recognized principle of not insisting upon source of the source needs no elaboration. Upon appreciation of materials on record and totality of facts and circumstances of the case, the revenue authorities and the Tribunal came to the conclusion that the entire transaction was a circuitous route to bring on books the assessee's own unaccounted money. The factor that the donors did not possess independent source to make such deposits must be viewed in light of the findings that the assessee had no justification for borrowing such amounts at such high rate of interest. These aspects would have a bearing on the genuineness of the transaction and the creditworthiness of the donors and cannot be seen as an attempt to throw the burden to prove source of the source of the assessee. He submitted that the Hon'ble High Court has taken note of the fact that substantial amount of cash was deposited in the bank accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s order, which is reproduced hereinbelow for the sake of clarity. Sr.No. Name of Depositors Loan given to the appellant (Rs.) Total Capital of Depositors as on 31.03.2006 (Rs.) 1. Shri Bhavansingh Sekhawat 2,00,000 3,80,470 2. Smt. Chunkidevi Singhodia 2,00,000 4,86,883 3. Shri Gopal Saini 2,60,000 3,15,457 4. Shri Govind Seshma 2,00,000 5,58,311 5. Smt.Indra Parekh 2,00,000 4,80,263 6. Smt.Kamal Kishore R.Pareek 2,00,000 3,71,732 7. Shri Mukesh Kumar Malwal 2,00,000 3,38,536 8. Shri Narpat Sharma 2,00,000 4,46,956 9. Shri Om Prakash Sharma 2,00,000 3,83,523 10. Shri R.L. Agrawal & Sons HUF 12,50,000 6,94,492 Loans & advances of Rs.33,29,471 11. Shri Ramesh Bhadu 1,60,000 3,76,988 12. Shri Ram Chander Chaudhary 1,60,000 3,72,449 13. Shri Satya Narayan Chaudhary 2,00,000 3,37,335 14. Shri.Seo Narayan Chaudhary 1,60,000 3,65,071 15. Smt. Suman Om Prakash Sharma 2,60,000 4,07,853 16. Shri.Surendra Kumar Chaudhary 1,60,000 3,41,155 17. Shri Vijay Kumar Chaudhary 1,60,000 3,68,020 6.1 The Revenue has placed reliance on the judgement of Hon'ble Jurisdictional High Court rendered in the case of Blessing Construction vs. ITO reported at (2013) 32 taxman ..... X X X X Extracts X X X X X X X X Extracts X X X X
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