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TMI Blog2017 (5) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... e creditor because after excluding the expenses incurred for earning agricultural income and household expenses , nothing would be left with the creditor because only Form (J) were filed for 5,73,843/- only in which also Ld.CIT(A) found certain defects. No other evidence has been produced to prove creditworthiness of the creditor. Assessee failed to produce the creditor before the AO for examination in order to find out the truth in the matter, therefore, the assessee deliberately withhold the creditor to be produced before the AO for examination. If the assessee was interested in producing the creditor for examination by the income tax authorities, the assessee should have made a request to the Ld.CIT(A) in this respect, therefore, the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... saction in the bank account except the amount shown as deposit in the name of the assessee. These amounts were deposited on the same date as cash including draft charges payable thereon. The details of these deposits in cash including bank charges are reproduced in the impugned order. It is stated that on 14.01.2008, the creditor deposited cash of ₹ 6,25,000/- and ₹ 1,000/-. On the same day, the creditor has issued Drafts (WDL) in favour of the assessee of the amount of ₹ 3,00,000/- & ₹ 3,25,000/- with bank charges. Again on 28.01.2008, the creditor deposited ₹ 5,02,000/- in cash in his bank account and on the same day ₹ 5,00,000/- with bank charges have been transferred through Draft (WDL) in the account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lender would have spent some amount for earning agricultural income and spent personal expenses, therefore, nothing is left with the creditor Sh.Balwant Singh. The AO also noted that there were no relationship between the assessee and the creditor and the cash deposits in the account of the creditor has not been proved. Therefore, Sh.Balwant Singh did not have capacity or creditworthiness to advance the loan. Further, genuineness of the transactions has not been proved, therefore, addition was confirmed and this ground of appeal of the assessee was dismissed. 7. After considering the rival submissions, we do not find any merit in the appeal of the assessee. Ld. counsel for the assessee reiterated the submissions made before the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of the creditor because after excluding the expenses incurred for earning agricultural income and household expenses , nothing would be left with the creditor because only Form (J) were filed for ₹ 5,73,843/- only in which also Ld.CIT(A) found certain defects. No other evidence has been produced to prove creditworthiness of the creditor. ITAT, Agra Bench in the case of Smt. Suman Gupta vs ITO 138 ITD 153 considered the identical facts in which there were small bank balances available in the account of the creditor before issue of cheque to the assessee and equal amount of the cash were deposited in the bank accounts for giving loan to the assessee. The Tribunal confirmed the addition u/s 68 of the Act. Hon'ble Allahabad High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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