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TMI Blog2017 (7) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... om the Alay Hassan educational society of ₹ 13,75,000/-without verifying the creditworthiness of the society as well as the genuineness of the transaction. In the result ground, No. 1 of the appeal of the revenue is allowed accordingly. Addition on account of claim of loan from Mod. Ilyas - proof of identity and creditworthiness of credit and genuineness of the transaction - Held that:- Merely holding of the land do not justify the credit less of the depositor unless there are evidences of produce of the agricultural and it sale. When the depositor has deposited the sum through account payee cheque it is also important to verify about the source of such cheques and whether they are received on sale of agricultural produce or otherwise, The Ld CIT (A) has not examined this himself and nor directed ld AO to do so. The Ld. CIT appeal has without verifying any such evidences which justifies the creditworthiness and genuineness of the about transaction has deleted the addition. Further the amount of addition is made by the assessee is ₹ 24 Lacs whereas the addition and conformation received from the depositor is just 12 lakhs therefore there is a mismatch in the amount st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explained cash deposits on the evidences filed without allowing the AO opportunity to examine them under Rule 46A . 2 . That the ld CIT ( A ) has erred in deleting the addition of Rs . 2400000 /- on account of claim of loan from Mohd Ilyas by accepting the identity and credit worthiness of creditor and genuineness of transactions . 3 . The ld CIT ( A ) erred in deleting the addition of Rs . 2923500 /- made by the AO on account of unexplained cash deposits in bank account on the grounds that the sources are past withdrawals . 3. The brief facts of the case are that the assessee is an individual who is a director in M/s JMA appliance private limited. It derives only the salary income and income from other sources. For the impugned assessment year he filed his return of income on 31st of March 2008 declaring an income of ₹ 124565/ . However, during the course of assessment proceedings it was noticed by the Ld. assessing officer that the assessee as income such a short term capital gain, interest income and dividend income, which was not shown by him in his return of income. It was also noted by the Ld. assessing officer that he has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) and submitted that after carefully considering the evidences placed has deleted the addition. He submitted that with respect to addition of ₹ 1375000/- in case Alay Hasan Education Society, he has completely examined the evidences. Therefore, there is no error in the order of the ld CIT (A). 6. We have carefully considered the rival contentions. On perusal of para No. 9 while deleting the addition of ₹ 1375000/- on account of Alay Hasan Education Society the ld CIT (A) has examined certain new evidences, which are listed there. We do not find any reference to the application made by the assessee for not submitting these details before the Assessing Officer and therefore any request before him to admit these evidences and adjucate. Even otherwise, he has not obtained the comments of the Assessing Officer with respect to these evidences. In para No. 9 the ld CIT(A) has held as under:- 9 . I have gone through the assessment order and written submissions of the appellant . I have also perused the documents and details filed during the course of appellate proceedings and case laws relied upon by the appellant . The Assessing Officer has made certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not show the amount was paid in cash or by cheque. The reason for advancing loan to appellant who is a secretary of the society as stated that the amount was given to secretary in cash for the purpose of purchase of plot at Noida and greater Noida. However, no details were available which plot was identified and what was the price of that plot etc and why consideration was required to be paid in cash only. Furthermore looking to the dates of the transaction it is apparent that on 24 /4/ 2006 a sum of ₹ 4 Lacs was provided in cash to the assessee by that society and immediately on 26/04/2006 a sum of ₹ 5 lakhs has been repaid by the appellant to that society. It is interesting to note that if the plot is not purchased then the sum was used by the assessee up to 18th may 2006 when ₹ 3 lakhs was repaid and on 3/2/2007 ₹ 5.75,000/- was repaid. The time between the sum paid by the society to the appellant and the sum repaid by the assessee to the society does not inspire confidence about the genuineness of the transaction. Similarly, another conformation was provided by the assessee that is from St Xavier School but signed by some chairman there also the permanen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t all established because the assessee is merely submitted the copy of election card and the revenue records. Both of these evidences do not establish anything. He therefore vehemently supported the order of the Ld. assessing officer. 10. The Ld. authorized representative relied upon the order of the Ld. CIT appeal and submitted that assessee has submitted a copy of the conformation which is placed at page No. 20 of the paper book which confirms the transaction of ₹ 12 lakhs given by account payee cheques. He held as under:- Md . Ilyas - ( i ) Copy of Election card no - UP / 06 / 025 / 627399 . , ( ii ) Copy of Kisan Bahi ( Revenue Record ) of Sh . Md Ilyas . From the above documents his existence and genuineness residential address is proved . As an agriculturist his Identity Credit worthiness are also established . The Assessing Officer has only considered all the cash deposits and treated it as unexplained cash deposits and income from undisclosed sources . The Assessing Officer has failed to consider the withdrawal from these three bank accounts on different dates, prior to the deposit dates and has arriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mismatch in the amount stated. Therefore in the interest of Justice the addition of ₹ 2 400000/-is once again set aside to the file of the Ld. CIT appeal with a direction to verify the creditworthiness and genuineness of the transaction and then decide the issue on merit. In the result ground No. 2 of the appeal of the revenue is allowed with above direction. 12. Ground No. 3 of the appeal of the revenue was against deletion of the addition of ₹ 2 923500/- made by the Ld. assessing officer on account of unexplained cash deposits in the bank account on the ground that the sources are past withdrawals. 13. Ld. departmental representative submitted that there is no evidences available of anything produced before the Ld. CIT appeal which even remotely justify the deletion of the balance amount of ₹ 2 923500/ . He referred to the submission of the assessee at para No. 7 and 8 of the order of the Ld. CIT appeal as well as the his decision at para 9. From this is submitted that without any reference to the same the Ld. CIT appeal has deleted the whole addition of ₹ 6698500/-. 14. The Ld. authorized representative submitted that a complete explanation was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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