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TMI Blog2018 (8) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and in the circumstance of the case and in law, the Tribunal was justified in sustaining addition of Rs. 2,40,00,000/as alleged cash credit [and further addition in respect of disallowance of interest thereon,] without appreciating that the assessee had sufficiently explained the credits, and the burden thereafter shifted to the AO to prove non-genuineness of the transaction? (b) Whether on the facts and in the circumstances of the case, and in law, the Tribunal was justified in confirming the additions u/s. 68 (and consequential addition of interest thereon) without appreciating that the assessee is not required to prove 'source of source'? (c) Whether on the facts and in the circumstances of the case and in law, the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ]. As the Appellant led a fresh evidence, the CIT(A) called for the remand report from the Assessing Officer. On consideration of the remand report, the CIT(A), held that the amounts received as loans from 12 companies (other than Khandar Group) was accepted and the addition on account of cash credit under Section 68 of the Act to the extent of Rs. 2.21 Crores by the Assessing Officer was deleted. However, so far the 9 companies (belonging to the Khandar Group), the CIT(A) held that their identity was established but was not satisfied with their credit worthiness and genuinenesses of the loan transactions. This, on the finding that these 9 Companies of the Khandar Group were not maintaining their books of account and had also not filed its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er further records that the statement of the representative of the 9 companies of the Khandar Group that as its affairs were in complete mess, the accounts could not be prepared and merely the fact that in the past, consequent to the search, a large amount was declared in A. Y. 2000-01 would not establish the capacity in the previous year relevant to subject Assessment Year. Thus, holding that the transactions were also not genuine. The submissions with regard to the non requirement of explaining the source of the source in the context of the over all facts of the present case, was also not accepted. 6. Mr. Lala, learned Counsel in support of the Appeal, seeks to invite our attention to the following decisions: (i) Pr. Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e conclusion that the Appellant-Assessee has failed to discharge its onus to establish the genuinenesses and credit worthiness of the 9 parties belonging to Khandar Group. The decision which are being relied upon are all in respect of credit worthiness of the lender. The decisions are rendered in the context of the facts before it and would not apply in the facts in this case, when taken cumulatively. It is true that this Court has been consistently taking a view that prior to amendment to Section 68 of the Act w.e.f. 1st April, 2013, it is not necessary to establish the source of the source. However, in the present case, both the authorities i.e. CIT(A) and the Tribunal have on facts found the transaction is not genuine. This was on the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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