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TMI Blog2019 (2) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmations which proved that they were regular assesses both the creditors having died and shifted to new addresses which were also supplied." 3. Facts of the case, in brief, are that the assessee is an individual and the original assessment was completed u/s 153A on 28.12.2007 at an income of Rs. 8,72,120/- against the returned income of Rs. 1,22,120/- wherein addition of Rs. 7,50,000/- was made as undisclosed income u/s 68 of the IT Act on account of unexplained loan. The assessee had shown to have received loans from two parties i.e. Rs. 2,50,000/- from Shyam Gopal & Sons, 367-A, Katra Hussain, Khari Baoli and Rs. 5,00,000/- from Prem Lata. Against order of the Assessing Officer, the assessee filed an appeal before the CIT(A) who conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pector was deputed by the Assessing Officer to serve notice u/s 133 (6) and to verify the presence of the said parties. It was reported that no such persons are found at the given address. On being asked by the Assessing Officer to produce the above parties before him, there was no compliance from the side of the assesee. Due to the failure of the assessee to substantiate the credit worthiness of the loan creditors and genuiness of the transactions, the Assessing Officer invoking the provision of section 68, added the amount of Rs. 7,50,000/- to the total income of the assesee. 3.2 Before CIT(A) it was submitted that assessee had substantiated the identity and credit worthiness of the loan creditors and the genuiness of the transactions b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amounts are already returned back no addition is called for. 5. However, the Ld. CIT(A) was not satisfied with the arguments advanced by the counsel for the assessee and upheld the action of the Assessing Officer by observing as under :- "7.6 I have carefully considered the facts of the case and the submission of the Appellant. Before the Assessing Officer, the Appellant filed an affidavit sworn in by him, confirmation from Smt. Prem lata of her account with R. L. Traders, cheque issued by Smt. Prem Lata, slip showing deposit of cheque, confirmation from Shyam Gopal & Sons , copy of the bank account showing receipt of two loans and copy of the bank account showing return of cheque to Smt. Prem Lata. 7.7 If the above documents are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourts have held that mere proof of identity of creditor or that transaction was by cheque, is not sufficient to satisfy the requirement of section 68. 7.9 Similarly, in the following cases, the Apex Court has held that the onus of proving the source of a sum of money found to have been received by an Assessee is on him. 1. Roshan Di Hatti vs. CIT, 107 ITR 938 (SC) 2. Kale Khan Mohammad Hanif vs. CIT, 50 ITR 1 (SC) 7.10 The peculiar facts of this case are different from the case of Sh. Sunil Kumar Bhatia for AY 2003-04. The Assessing Officer has diligently conducted the inquiry to verify the facts of the case and to look beyond the apparent. I do not agree with the contention of the Appellant that the parties could not be produced as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not possible to trace out whereabouts of the legal heirs of Mr. Shyam Gopal. He submitted that the three storey building owned by Late Sh. Shyam Gopal substantiates his standing in the society to extend the loan of Rs. 2,50,000/- Similarly, Smt. Prem Lata had given the money out of the loan returned to her by M/s. R. L. Traders to whom the loan was given earlier. He submitted that assessee had filed full details to substantiate the identity and credit worthiness of the loan creditors and genuiness of the transactions. Therefore, the additions made by the Assessing officer and sustained by the CIT(A) is not justified. 8. The Ld. DR on the other hand strongly relied on the order of the CIT(A). He submitted that the onus is always on the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details furnished by the assesee in the paper book it can be verified that the loans were obtained through banking channels and has also been returned to the loan creditors in the subsequent years. The confirmations and the affidavits were given earlier before the Tribunal for which the Tribunal had set aside the issue to the file of the Assessing Officer for denove assessment. I find force in the submission of the ld. Counsel for the assesee that both the loan creditors have expired in the meanwhile and therefore it is not possible on the part of the assesee to produce above two parties. The assessee before the Assessing Officer had filed the copy of the account of Mrs. Prem Lata for financial year 2001-02 with M/s. R. L. Traders to whom l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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