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TMI Blog2015 (3) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... is claimed by him that he has 45 Acres of agricultural land and 10 Acres of agricultural land is irrigated. He also produced the sample receipts of the sale of TUR only the name of mentioned as Basavlingeshwhar Math. He also produced the sample sale of bills of sale of sugarcane to the Sidhheswar S.S.K. Solapur. It is true that he has not assessed to tax but if a person having substantial agricultural income but he is not having the non-agricultural income or non-agricultural income is below the non-taxable limit inference can be drawn that he is not capable to giving any loan as claimed. Thus there is a creditworthiness in respect of amount of 5,00,000/- given to the assessee. - addition deleted. - Decided in favour of assessee. In respect of Shri Pandurang Babu Shinde it is true that he has not assessed to tax but he has appeared before the Assessing Officer and confirmed that he has given the hand loan to the assessee. He also explained that the source of the said hand loan is from the agricultural activities. He also produced 7/12 extract of the agricultural land to demonstrate that in fact he is owner of agriculture land. He also claimed that he is taking crops like sugarcane, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven the loan to the assessee. As per the facts on record and statement of the said person identity and genuineness cannot be doubted. It is also stated by him that he takes the agricultural produce in the form of grapes. He also produced documentary evidence in the form of sales bills of the dry grapes. Giving our anxious consideration to statement of the said person as well as the documentary evidence, we hold that the assessee has established identity, genuineness and creditworthiness of the said person. -Decided in favour of assessee. In respect of Sou Taramati S. Jadhav. Admittedly, the said loan creditor did not appear before the Assessing Officer. Admittedly, the assessee had filed only 7/12 extract to demonstrate that she is owner of land. It is claimed that she has paid 3,00,000/- to the assessee. In our opinion in this case, the identity, genuineness and creditworthiness are not proved. We, accordingly, confirm the addition. Decided against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... t 6 Shri Irranna Rachppa Konapure, A/p Nagansur Rs.3,00,000 05.11.2009 Agriculturist 7 Shri Ravindra Shamrao Tambolkar, Solapur Rs.3,00,000 01.11.2009 Retired from service. 3. The assessee filed the confirmation letters from the above loan creditors. The Assessing Officer asked the assessee to produce the above persons for verification along with necessary proof such as 7/12 extract of lands, proof of identification, extract of all bank accounts, copy of PAN Card etc. The Assessing Officer also issued summons to all the loan creditors to attend before him on 07-12-2009. Out of 7 loan creditors 6 loan creditors appeared before the Assessing Officer and they confirmed that they have given the loans as claimed by the assessee in cash for his business and they also explained the source. The Assessing Officer recorded the statements on oath of all above loan creditors on two different dates i.e. on 14-12-2009 and 23-12-2009. The Assessing Officer has narrated the summary of the information given by those persons in the assessment order. The gist of statement recorded in respect of above loan creditors by the Assessing Officer is as under: (I). Shri Ravindra Shamrao Tambolkar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced 7/12 extract but it was seen that he has the owner of 5.03 Hector of land. He also stated that he is taking crops like, Jowar, sugar cane, Tur etc. He further stated that he use to sale agricultural yield in Akkalkot Market. He also produced sample receipt for sale of TUR. He also filed the receipt of sugarcane sale to Sidhheswar S.S.K. Solapur. He also stated that he has bank account in Solapur District Co-op. Bank and Bank of India, Nagansur Branch. He further stated that out of income received from agricultural activity, he used it for ANNACHHATRA in the MATH. He admitted the confirmation letter given to the Assessing Officer as well as signature. The Assessing Officer declined to accept his creditworthiness though he accepted that identity was established. (III). Shri Pandurang Babu Shinde: As noted by the Assessing Officer, the said person was residing at Sayyad Warvade Tal Mohol, Dist Solapur. He is 64 years old and he is not assessed to tax. There are 5 members in his family including him. It is stated that he was a teacher during the period 1974 to 2004. After his retirement, he is engaged in the agricultural activities. He stated that he is owner of 12 Acre agricultu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s wife, one sons, who is running grocery shop and daughter in law and two granddaughter. He stated that he is owner of 8 Acre agricultural land. The said person also produced 7/12 extract of all his agricultural lands. He stated that he has cultivated sunflower, tur and jowar in his land. He further stated before the Assessing Officer that he sales his agricultural produce at Basavat Bagewadi and Vijapur market through the ADDTYA (agent). He further stated that he has not having any bank account but he confirmed that he has given the hand loan to the assessee of ₹ 3,00,000/- in cash from time to time since 2001 to 2006 but he has not maintained any record. The Assessing Officer declined to accept the creditworthiness of the said person. As observed by the Assessing Officer only identification of person is not sufficient to prove the genuineness of the transaction and creditworthiness is also to be proved. (VI). Shri Basavraj Ambadas More: The Assessing Officer recorded his statement on 23-12-2004. The said person was residing at Nagansur, Tal.-Akkalkot, Distt.-Solapur. He is 23 years old. He is not assessed to tax. There are 6 members in his family including him. i.e his fat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rused the record. The assessee has filed the Paper Book in which the copies of statement of the 6 loan creditors recorded by the Assessing Officer are placed. The assessee also filed the copies of 7/12 extract of the loan creditors to demonstrate that whatever the statement was given before the Assessing Officer was correct. The Ld. AR for the assessee vehemently argues that the present addition is made by the Assessing Officer u/s. 68/69 of Act. As admittedly the assessee is not maintaining the regular books of account. He submits that he was working with the High School and Jr. College in Pune and he was to retire on 31-12-2007. He, accordingly, plan to start the civil construction business he collected some funds from his close friends and relatives. He could not materialize his planning and the cash was lying with him for some time but subsequently the cash was deposited in the bank. He argues that out of 7 loan creditors, 6 loan creditors have appeared before the Assessing Officer. The Assessing Officer also issued the summons to the loan creditors and except one, all the summons were served on the respective persons. He submits that out of 7 loan creditors, 6 creditors who ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of 7 loan creditor i.e. Sou Taramti S. Jadhav, he submits that the said loan creditor also filed the confirmation as well as documentary proof of the land record in the form of 7/12 extract. He submits that even if the said loan creditor does not appear before the Assessing Officer but at the same time she filed the confirmation letter. He pleaded for accepting the said loan creditors a genuine one. 6. Per contra, the Ld. DR supported the orders of the authorities below. He drawn attention of the Bench to the statement recorded by the Assessing Officer and submits that from the statements of 6 loan creditors, it is clear that none of the loan creditor is having the proper bank account nor they are maintaining the books of account nor they are paid any amount by any banking channels then how the creditworthiness of those persons can be accepted. He submits that merely because those 6 persons appeared before the Assessing Officer and confirmed that they have given the loan to the assessee that will not absolve the assessee from showing that he has explained the source. The assessee has to demonstrate the creditworthiness of the lender. He argues that both the authorities below hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said person. In our opinion on the cursory look on the facts noted by the Assessing Officer creditworthiness of the said loan creditor cannot be disputed for giving the personal loan of ₹ 3,00,000/- to the assessee. We, accordingly, delete the addition in respect of Shri Ravindra Shamrao Tambolkar of ₹ 3,00,000/-. 9. In respect of Shri Revansidheswar Swamiji, he has also stated in the clear terms that he has given the loan to the assessee but there is no record. He produced the record of the agricultural activities. It is claimed by him that he has 45 Acres of agricultural land and 10 Acres of agricultural land is irrigated. He also produced the sample receipts of the sale of TUR only the name of mentioned as Basavlingeshwhar Math. He also produced the sample sale of bills of sale of sugarcane to the Sidhheswar S.S.K. Solapur. It is true that he has not assessed to tax but if a person having substantial agricultural income but he is not having the non-agricultural income or non-agricultural income is below the non-taxable limit inference can be drawn that he is not capable to giving any loan as claimed. In our opinion that cannot be the correct parameter as per the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Gurrappa Saibanna Iranar is concerned, he is old person and he is not assessed to tax. As noted by the Assessing Officer as per his statement he is owner of 8 Acre agricultural land. He is also produced 7/12 extract of all his agricultural lands. The said person also explained where as he sales the agricultural produce. He also confirmed that he has given the loan to the assessee. It appears that there is some contradictions in his statement in respect of annual income but so far as the identity and genuineness are concerned that cannot be doubted the only aspect to be considered is to creditworthiness. It is clear that he has given ₹ 3,00,000/- to the assessee but in our opinion as per the statement recorded that may not support his claim of giving ₹ 3,00,000/- to the assessee. After considering the figures of the income, in the interest of justice, we hold that to the extent of ₹ 2,00,000/- he has established his creditworthiness. We, accordingly, sustain the addition to extend of ₹ 1,00,000/- in respect of Shri Gurrappa Saibanna Iranar. 13. In respect of Shri Basavraj Ambadas More, we find that he is the owner of 6.5 Acre agricultural land which is ir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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