9911796707
TMI Blog2017 (12) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... uine. Hence, this ground of assessee’s appeal is also allowed. - ITA No. 850/JP/2016 - - - Dated:- 13-11-2017 - SHRI BHAGCHAND, ACCOUNTANT MEMBER For The Assessee : Shri S.L. Poddar Ms. Isha Kanongo (Adv) For The Revenue : Smt. Poonam Roy (DCIT) ORDER PER: BHAGCHAND, A.M. This is an appeal filed by the assessee emanates from the order of the ld. CIT(A)-2, Jaipur dated 23/08/2016 for the A.Y. 2003-04. 2. The assessee is engaged in the business of manufacturing and trading of handicrafts items. The return of income was filed on 27/09/2003 declaring total income of ₹ 1,65,119/-. Notice U/s 148 of the Income Tax Act, 1961 (in short the Act) was issued on 30/03/2010. The assessment U/s 147/144 of the Act was made at an income of ₹ 23,21,850/- on 28/12/2010 and addition U/s 68 of the Act was made at ₹ 19,15,740/-, addition on account of interest disallowed of ₹ 2,02,673/- and addition U/s 69C of ₹ 38,315/-. 3. In the first round of appeal, the ld. CIT(A) dismissed the appeal of the assessee. The Hon ble ITAT vide its order dated 11/3/2014 while deciding the ITA No. 84/JP/2012, set aside the issue to the file of the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f unexplained cash credit after submitting the confirmations and other evidences of all the creditors in spite of specific direction of the Hon'ble ITAT. 2. Under the facts and circumstances of the case the Learned CIT(A) has erred in not deciding the ground relation addition of ₹ 2,02,673/- by disallowing of interest paid by the assessee. 3. Under the facts and circumstances of the case the Learned CIT(A) has erred in confirming the addition of ₹ 38,315/- u/s 69C on account of unexplained expenses on presumption basis. 5. In the ground No. 1 of the appeal, the issue is sustaining the addition of ₹ 15,07,240/- made U/s 68 of the Act. On this issue, while pleading on behalf of the assessee, the ld AR of the assessee has submitted that the assessee has submitted confirmation from all these depositors. The assessee has also submitted acknowledgement of returns, copy of PAN and in certain cases, copy of bank statements. He also submitted that the all these persons were assessed to income tax. They have confirmed the accounts of the assessee. The amounts were received by cheques. He submitted a chart whereby details regarding each and every deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aria, the assessee provided correct address, PAN, confirmation and income tax assessment records. From perusal of the confirmation, it is noticed that this amount was old outstanding and brought forward balance was reflected in the account. The amount was received by cheque. Confirmation was submitted, therefore, in this case also, the assessee was able to establish the identity, genuineness of transaction and creditworthiness of the depositor. Hence, this addition is deleted. Similarly in the case of Ashok Hansaria, the assessee has furnished full address, confirmation, copy of IT returns, PAN. All the transactions were through cheques. In this case also, the assessee was able to discharge the onus U/s 68 of the Act. Hence, the addition is deleted. In the case of Sita Ram Gupta, the assessee provided full address, his PAN. In the earlier occasion, there was a clerical mistake in providing PAN but subsequently, the assessee has submitted correct PAN of this depositor. All the transactions were through cheuqes. Therefore, I find no merit in sustaining the addition. In the case of Rajat Medical and provision, a proprietory concern of Radha Gopal Gupta. The assessee has furnishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the onus U/s 68 of the Act in respect of this depositor while establishing the identity of the person, genuineness of the transaction and creditworthiness of the depositor. In the case of Pushpa Holani, the assessee has submitted full address, alongwith PAN. He has also submitted confirmation. He has also submitted Income tax return and also copy of relevant account. From perusal of this, it is found that this amount was received through banking channels. The depositor has confirmed the deposit. He has also submitted IT return of the deposits with full address and PAN, therefore, in my considered view, the assessee was able to discharge the onus U/s 68 of the Act in respect of this depositor while establishing the identity of the person, genuineness of the transaction and creditworthiness of the depositor. In the case of Ram Babu Gupta, the assessee has furnished full address alongwith PAN and confirmation. All the transactions were through cheques. The assessee was able to discharge the onus U/s 68 of the Act by establishing the identity, genuineness of transaction and creditworthiness of the depositor. Hence, the addition is directed to be deleted. In the case of Krishn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JP/2009 dated 24.07.2009 Section 68 - Assessee obtained loan of ₹ 25 lac from 18 different persons. Assessee furnished confirmation and copy of Bank account in respect of 5 persons only. Assessing Officer required to produce all the creditors. Assessee fails to produce them. Assessing Officer issued summons to the creditors but none appeared, ultimately assessee surrendered the loan amount. CIT(A) confirmed the addition. Before the ITAT it was submitted that all the creditors are income tax assessee and confirmations and PAN were filed before the Learned Assessing Officer. Surrender was made to purchase peace of mind and to avoid litigation. Tribunal deleted the addition. In view of the above facts and circumstances, I delete the addition and this ground of assessee s appeal is allowed. 8. In the ground No. 2, the issue raised is sustaining the disallowance of interest paid by the assessee to the deposits of ₹ 2,02,673/-. 9. I have heard both the sides on this issue. Since I have deleted the addition made U/s 68 of the Act on which, interest was paid by the assessee. Since the depositors had been found genuine, therefore, in consequence of that the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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