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TMI Blog2018 (6) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... e un-secured loans stated to be from six persons to an extent of Rs. 29,50,000/-. It was submitted that assessee has approached the said parties for finance and they have given cheques but unfortunately, those cheques have been bounced as such no loan has been taken from the above parties. The entries in the books of account are squared up entries which are nothing but entries made for cheque deposit and consequent bouncing of the same. AO, however, was of the view that bank has credited the amount in the bank account and accordingly, they were to be considered as cash credits and since assessee has not proved the identity of the creditors, the amount of Rs. 29,50,000/- was added to the income of u/s. 68 of the Act. 2.1. In addition to tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue deposit and consequent bouncing of the same', which is amply proved by the necessary entries in the bank account statements and ledger copies of the parties in the appellant books of accounts. It is the procedure of the bank as and when a cheque is deposited gives a suspense credit in the statement and when the cheque which was deposited bounced, the bank debits the account. The above entries which the AO has added are reflected both in the debit and credit side as contra when deposited and bounced. As the cheques have bounced, the above amounts were not received by the appellant and hence, the same cannot be treated as unexplained credits and hence the further onus to prove the identity of the creditors, genuineness of the credits a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture was not doubted by the AO but only raised doubts about the genuineness of the expenditure and hence, the conditions of Section 69C are not applicable to the case of the appellant. Therefore, both by facts and in law, I am satisfied with the explanation of the appellant and hence, delete the addition of Rs. 38,26,873/-". iii. On the issue of addition of Rs. 27,91,627/-: "7.3 I have carefully considered the submissions of the appellant and find force in the contention and agree with the explanation of the appellant, who has filed all details along with TDS Certificates. The appellant paid the amount of Rs. 27,91,627 to the ten parties towards car hire charges vide account payee cheques and given their addresses. As rightly contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS Certificates. The appellant paid the amount of Rs. 11,68,383 to the six parties towards car hire charges vide account payee cheques. The AO opined that the details of cheques were not furnished. When the books and bank statements were available with the AO during the entire period of the assessment proceedings and the AO has gone through the same in detail, his contention that the details of cheques were not furnished is not tenable. The appellant also submitted TDS Certificates issued to the two parties viz Syed Kaleemuddin and Shaik Md Aqueel along with PANs and deducted TDS on the payments and remitted the same to the Govt. Account. However, the appellant had not submitted TDS Certificates in respect of the other four parties mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case in granting relief in respect of disallowance made towards unexplained expenditure under Sec.69C of the I.T. Act. 1961. 4. The CIT(A) ought to have considered the fact that the claim of assessee that he had hired the vehicles was failed to be established since none of the parties to whom letters addressed by the Assessing Officer resulted in non-compliance, apart from assessee's failure to prove the correctness of the claim. 5. Any other ground that may be urged at the time of hearing". 5. In the course of present appellate proceedings, DR was directed to furnish the authorization given by the CIT with reference to the grounds raised before us. The grounds originally filed by the ACIT, Circle-4(1) were revised and revise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintaining books of account under Mercantile System of Accounting, both the deposit of cheques and bouncing of the cheques are bound to be recorded in the books of account. Under what circumstances, AO considered that these amounts as unexplained credits u/s. 68 of the Act is not explainable. Ld.CIT(A) examined the issue and very clearly stated that this cannot be considered as unexplained cash credits u/s. 68. Inspite of that, both in the original grounds of appeal and revised grounds of appeal, this issue is contested. We are not sure whether the Senior Officers like CIT are applying their mind to the facts of the issue before preferring appeals. It reflects sorry state of affairs. This forum has time and again cautioning that at least w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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