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TMI Blog2018 (12) TMI 1452X X X X Extracts X X X X X X X X Extracts X X X X ..... ality therefore as the AO nowhere raised any objection in earlier assessment years. We notice that taxpayer has placed on record not only his creditors confirmations but also their entire detailed evidence in the nature of income tax returns, computation, capital account, balance-sheet, bank statement, affidavits etc. All of them are stated to be assessed in the same jurisdiction. The assessee has also repaid the impugned loans in eight cases in full / part alongwith interest involving TDS deduction. We take into account all these voluminous debtors to conclude that the CIT(A) has rightly deleted the impugned unsecured loans and interest as the assessee satisfied all the relevant particulars of identity, genuineness and creditworthine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was ₹ 7,80,609/- and TDS made was ₹ 70,160/-. (iv) Aggregate ;loan repayments was ₹ 54,76,409/- and (v) Aggregate closing balance of loan was ₹ 57,30,292/- It prima-facie appears that the AO made additions on account of some such loans which were repaid during the year. For example, excepting Ms. Rehmi Golcha, other three new loans were repaid with interest. The AO also disallowed some such interests which were attributable to brought forward loans, without assigning any reason. From the assessment order it also appears that the AO pointed out some alleged discrepancies in the accounts of five cases, but disallowed entire fresh loans [four new loans and five addition to loans] aggregating to ₹ 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 3,45,494/- and having capital balance of ₹ 8.79 lakhs could not provide loans is preposterous. Loans also can be given by taking loans from others. The AO though pointed out about some suspicious transaction in his bank account, but no specific discussions has been made. On the other hand, assessee has given explanation for each and every credit amounts (in the books of lender) used for providing loans with supporting evidences. Thus, the addition made in this regard is not maintainable. 6.2 Shri Rajendra Kumar Golcha: Sri Golcha had given fresh loan of ₹ 7,43,000/- as mentioned by the AO Ld AR has stated that fresh loans of ₹ 5,08,000/- were given [three were two returned cheques totaling to ₹ 2,35,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 50,000/-. Here also AO raised doubt that a person having total income of ₹ 51,030/- could not provide loans. Loans also can be given by taking loans from others and from accountable capital. The AO though pointed out about some suspicious transaction in his bank account, but no specific discussion has been made. On the other hand, assessee has given explanation for each and every credit amounts (in the books of lender) used for providing loans with supporting evidences. Thus, the addition made in this regard is also not maintainable. 6.5 Smt. Reshmsi Golcha: The assessee had taken new loan of ₹ 3,35,000/- from Smt. Reshmi Golcha. Source was explained as accumulated cash gifts received in her marriage ceremony. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition/disallowance as made were all correct. Law is settled that the fate of the assessee cannot be decided by the revenue on the basis of surmises, suspicion or possibilities. 6.6 In the light of above discussion, entire addition of ₹ 62,00,000/- made U/s 68 of the Act is not maintainable hence deleted. Consequently, addition of ₹ 7,80,609/- made by disallowing interest on such loans is also deleted. 3. We have given our thoughtful consideration to rival contentions. Mr. Choudhury vehemently contends during the course of hearing that the assessee s creditors in issue have megure source of income and there are many factual inconsistencies as well as so far as 10 families members / creditors including three HUFs are con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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