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TMI Blog2015 (3) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... ur unsecured loans u/s 68 of the I.T. Act, 1961 without realising the fact that the creditworthiness of the loan provider was not proved and granting relief only on the basis of AO's assessment without giving their own finding as appellate authority. 2. That the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 13,50,000/- u/s 68 of the I.T. Act, 1961. 3. That the CIT(A) erred in law and on facts in deleting the addition of Rs. 1,94,000/- on account of interest paid on without verifying the facts & assigning any logical reason. 4. That the order of the Ld. CIT(A) being erroneous in law and on facts which needs to be vacated and the order of the A.O. be restored. 5. That the appellant craves leave to add or amend a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the A.O. It was also pointed out that all the transactions were through account payee cheques. The assessee further contended, during the first appellate proceedings, that the lenders are in existence and they can be very well examined by the A.O. for ascertaining the genuineness of the loans. The ld. CIT(A), in the alight of these arguments, directed the A..O to examine all the four lenders and submitted a remand report in respect of such an examination. Accordingly, the A.O. vide report dated 25.07.2012 submitted as follows:- "(i) Shri Gyan Prakash Mittal and Shri Hashish Mittal, trustees of Bhagwati Trust, who was given loan to Shri Praveen Kumar has paid the amount of Loan of Rs. 3,00,000/- to the trust from their over draft account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from his overdraft account maintained with HDFC Bank. He has also given the details of loan given by other three trusts i.e. Bhagwati Trust, Bharat Trust and Rama Rani Trust and supporting bank statement from where these loans were given by these trusts were also submitted showing that the amount given as loan to the assessee (appellant) by these trusts were transferred from the overdraft account of Shri Gyan Prakash Mittal and Shri Ashish Mittal maintained with lDBI bank. In this statement, the AO also inquired as to why he has given unsecured loan to the assessee (appellant) from his OD account. In response to this query of the AO, Shri Gyan Prakash Mittal has justified giving unsecured loan to the assessee stating that the rate of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the alleged unsecured loans and further inquiry made by the AO during the course of appellate proceeding by recording the statement of Shri Gyan Prakash Mittal and submitting his remand report. As per the details available on record, I have found that the first loan of Rs. 3 lac from M/s. Bhagwati Trust has been given on 05.08.2008 and this amount has been made available to M/s. Bhagwati Trust from the OD account no.080653800000152 maintained with lDBI Bank by Shri Gyan Prakash Mittal on 05.08.2008. Similarly, the second loan of Rs. 4 lac from M/s.Bharat Trust has been provided after transferring of this amount from OD bank account no.080653800000170 maintained with IDBI Bank by Shri Ashish Mittal on 05.08.2008. The third unsecured loan o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the remand report furnished by the AO, I find that identity and creditworthiness of the lenders in whose name these unsecured loans have been shown are established because the AO has not doubted the correctness of statement given by Shri Gyan Prakash Mittal who is trustee in all the three trust and have control over them and he himself has given a loan of Rs. 3 lac to the appellant in his individual capacity. Therefore, genuineness of unsecured loans under consideration does not remain under dispute after submission of the remand report by the AO. Since during appellate proceeding, after necessary inquiry and examination has been made by the AO, the identity, creditworthiness and genuineness of the unsecured loans has been established, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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