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TMI Blog2015 (6) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... nies through RTGS to the assessee and the assessee in fact repaid half of the loan to the lender company. It is not in dispute that assessee has not provided confirmations in the course of assessment proceedings. In fact, Assessing Officer has given a finding that assessee also provided confirmation letters from the creditors including M/s. Aditicon Services India Pvt. Ltd. This confirmation letter was not placed before the lower authorities where the lender has given new address. Therefore, subject to verification of the Assessing Officer, as to whether the lender is operating from the said address and this confirmation letter is given by one of the directors of the lender, we uphold the order of the CIT (Appeals) treating the loan tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal, Commissioner of Income Tax (Appeals) deleted the addition against which Revenue is in appeal before us. 3. Departmental Representative submits that M/s. Aditicon Services India Pvt.Ltd. is not functioning from the address provided by the assessee. In fact, inspector who visited the premises found that no such company was there at the address given. The Assessing Officer required the assessee to produce directors, but the assessee could not produce any of the directors of the lender company. Enquiries were also made before the Registrar of Companies and the ROC provided certificate of incorporation, memorandum of articles of association of the company. Departmental Representative submits that lender is not filing any return of incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x(Appeals) in deleting the addition. 5. Heard both sides. Perused orders of lower authorities. In the course of assessment proceedings, at the time of hearing, assessee gave confirmation letters from creditors including M/s. Aditicon. Services India Pvt. Ltd and explained before the Assessing Officer that amount has been transferred through RTGS to assessee s bank account. Though the Assessing Officer required the assessee to file profit and loss account and balance sheet of the lender company, the assessee could not furnish the same. In the course of assessment proceedings, the Assessing Officer issued letters to lender company to the address given by the assessee requesting for confirmation. However, there was no response from the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the address given and which matters were beyond the control of the assessee and the same cannot lead to the conclusion that loan is not genuine. The Commissioner of Income Tax (Appeals) has also taken note of the fact that assessee has repaid 50% of the loan amount i.e. ₹ 25,00,000/- through demand draft on 30.04.2013. Therefore, Commissioner of Income Tax (Appeals) accepted the submissions of the assessee that the said loan amount cannot be treated as unexplained credit and he held that all three conditions of proving cash credit including identity, creditworthiness and genuineness of the transaction are proved. Before us, the assessee filed confirmation from the lender company stating as under:- Aditicon Services (India) Pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er was also provided. The lender company also provided its bank account establishing that loan was transferred through RTGS. All these go to show that lender has advanced monies through RTGS to the assessee and the assessee in fact repaid half of the loan to the lender company. It is not in dispute that assessee has not provided confirmations in the course of assessment proceedings. In fact, Assessing Officer has given a finding that assessee also provided confirmation letters from the creditors including M/s. Aditicon Services India Pvt. Ltd. This confirmation letter was not placed before the lower authorities where the lender has given new address. Therefore, subject to verification of the Assessing Officer, as to whether the lender is op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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