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TMI Blog2015 (10) TMI 2436X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon’ble Rajasthan High Court Lakshman Swaroop Gupta & Bros (1972 (11) TMI 20 - RAJASTHAN High Court), the additions made by the Assessing Officer cannot be sustained as the unsecured cash credits doesn’t pertain to the year under consideration.- Decided in favour of assessee. Disallowance of interest - CIT(A) deleted the addition - Held that:- We have gone through the order of the ld CIT(A) and we do not feel any infirmity in the said order. Neither the revenue has brought any further facts to prove that this payment of interest to the creditors were not genuine or bogus - Decided in favour of assessee. - ITA No. 381/JP/2013 - - - Dated:- 7-9-2015 - The AO however held that The explanation submitted by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de for want of confirmation from the assessee, thus loans may be of earlier years but to find out the current status of the loans, it is necessary to have the confirmations on record. Merely for the reason that the loans are old and of earlier years, the sources with the assessee in form of unsecured loans cannot be accepted. 3.3 We have heard the rival contentions and pursued the material on record. Firstly, reference can be drawn to Section 68 of the Act wherein it is stated as under:- Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the [Assessing] Officer, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxing of an unexplained cash credit entry in the assessee's books of account, any option is available to the department to shift the opted previous year enabling it to rope in the unexplained entry? The answer is plainly in the negative. In this context a reference to section 69 would further illuminate the intention of the legislature. It provides that where in the financial year immediately preceding the assessment year the assessee had made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Income-tax Officer, satisfactory, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer u/s 68 of the Act has been examined in detail by the ld CIT(A) and he has given a clear finding that all the aforesaid cash credits were admittedly old and balances therein reflected only the brought forwarded balances. The Assessing Officer in his remand report has also not disputed this fact. In the light of these uncontroverted facts, these cash credits pertained to years prior to year under consideration. Further, in terms of section 68 and in the light to the decision of the Hon ble Rajasthan High Court Lakshman Swaroop Gupta Bros (supra), the additions made by the Assessing Officer cannot be sustained as the unsecured cash credits doesn t pertain to the year under consideration. We, accordingly, find no infirmity in the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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