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TMI Blog2015 (12) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... tion letters contained the address of the creditors and also their respective PAN. Thus, we notice that the creditors having received back the loans from the assessee did not mind to co-operate with the assessee by way of appearing before the AO, since the transactions were 10 years old. We also notice that the AO also did not enforce the attendance of these creditors by issuing summons to them and he did not verify their income tax returns also, even though the assessee has filed necessary details. Under these set of facts, we are of the view that tax authorities could not draw adverse inference in respect of inability of the assessee to produce the creditors.In the peculiar facts and circumstances of the case, we are of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the Vijay Group. Consequent thereto, the present assessment was completed u/s 153A of the Act. During the course of assessment proceedings, the AO noticed that the assessee did not file balance-sheet along with the return of income filed u/s 139(1) and also under section 153A of the Act. On being called by the AO, the assessee filed the balance sheet wherein unsecured loans was shown to the tune of ₹ 1,37,36,115/- and hence the AO called for the details relating thereto. Since the details were not forthcoming, the AO assessed the entire amount of unsecured loans as unexplained cash credit under section 68 of the Act. 3. In the appellate proceedings, the assessee furnished the details relating to unsecured loans and hence the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey have failed to appear before the AO despite the request made by assessee. The ld. AR also submitted that the assessee has discharged these loans in the subsequent years through account payee cheques. Since the matter was very old and since the assessee had already repaid the loan, they did not cooperate with the assessee. The ld. Counsel for the assessee further submitted that the assessee has otherwise discharged the initial burden placed upon him by furnishing necessary evidences. Since the assessee could not enforce the attendance of these parties, which was beyond the control of the assessee, the Ld A.R submitted that the tax authorities are not justified in taking adverse view against the assessee. Accordingly, he prayed that the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the transactions were 10 years old. We also notice that the AO also did not enforce the attendance of these creditors by issuing summons to them and he did not verify their income tax returns also, even though the assessee has filed necessary details. Under these set of facts, we are of the view that tax authorities could not draw adverse inference in respect of inability of the assessee to produce the creditors. A careful perusal of the provisions of sec. 68 would show that the addition on account of unproved cash credit is not automatic, but it gives discretion to the AO not to make any addition, since the expression may is used in sec. 68 of the Act. In the peculiar facts and circumstances of the case, we are of the view that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee gave certain explanations and also claimed that most of the deposits are recorded in the books of account. The ld. CIT(A) gave definite finding that the deposits to the tune of ₹ 15 lakhs stands explained and accordingly directed the AO to delete the addition of ₹ 15 lakhs. The assessee explained that a sum of ₹ 9,39,935/- was earned by him as commission income. It appears that the assessee has explained the sources of balance amount of deposits as his commission income. Accordingly, the ld.CIT(A) restored the matter to the file of the AO with a direction to examine the claim of the assessee and make the addition, if the commission amount was not offered as income. The revenue is aggrieved by the said direction gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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