9911796707
TMI Blog2019 (6) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as unexplained income of the assessee. Assessee has explained identity of loan creditor, genuineness of loan transaction as well as availability of funds in the creditor s account. During the A.Y. 2010-11 and 2012-13 under consideration, the assessee is not required to prove source of the source. See ARAVALI TRADING CO. VERSUS INCOME-TAX OFFICER [ 2007 (1) TMI 567 - RAJASTHAN HIGH COURT] Accordingly, we do not find any merit in the addition so confirmed by the ld. CIT(A). Similarly, in the A.Y. 2012-13, CIT(A) confirmed the addition of ₹ 1.00 lac U/s 68 by holding that source of giving loan to this extent is by cash deposit. However, while doing so he has not brought any evidence to prove that the cash amount deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs. In response to notice u/s 153A dt. 05.09.2016, assessee again filed the return on 03.10.2016 declaring Nil income. In the assessment framed u/s 153A, AO made addition/ disallowance u/s 40A(3)/ 68 of the Act. Before ld. CIT(A) assessee claimed that the disallowance made in the assessment framed u/s 153A is illegal bad in law as the assessment proceedings for the year under consideration was not pending as on the date of search. However, Ld. CIT(A) held that the processing of return u/s 143(1)(a) is not an assessment and therefore, disallowance made u/s 153A is valid. 4. It was argued by the ld AR of the assessee that the assessee filed the original return of income on 13.10.2010. The time limit for service of notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of unsecured loans taken in earlier years. 6. The ld AR of the assessee has relied on the decisions of the Hon ble Bombay High court in the case of CIT Vs. SKS Ispat and Power Ltd. (2017) 398 ITR 584 (Bom), CIT Vs. Gurinder Singh Bawa (2016) 386 ITR 483 (Bom) and the decision of Hon ble Gujarat High Court in the case of Pr.CIT Vs. Dipak Jashvantlal Panchal (2017) 397 ITR 153 (Guj), in support of the proposition that the scope of assessment U/s 153A is limited to the incriminating evidence found during the course of search in respect of years which are pending as on the date of search. However, in respect of assessment, which have already been completed or for which period for issuing of notice U/s 143(2) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the A.Y. 2010-11 assessee received amount of ₹ 16,50,000/- by account payee cheque from the following persons: - Name Date Amount Total Amount Arjun Khangar 17.8.2009 19.08.2009 2,50,000/- 6,00,000/- 8,50,000/- Suman Khangar 16.10.2009 3,00,000/- 3,00,000/- Shobhna Khangar 17.08.2009 15.10.2009 3,00,000/- 2,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs flew from the assessee, part of the cash credits cannot be treated as unexplained income of the assessee. 12. The Hon ble Rajasthan High Court in the case of Kanhaialal Jangid Vs ACIT (supra) has held as under: While it is the assessee's burden to furnish the explanation relating to cash credits, the assessee's burden does not extend beyond proving the existence of the creditor and further proving that such creditor owns to have advanced the amount credited in the account of assessee. However, the burden does not go beyond to put the assessee under an obligation to further prove as to wherefrom the creditor has got or procured the money to be deposited or advanced to the assessee. The explanation f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money was not acceptable to the AO, it cannot be presumed that the deposit made by the creditors is money belonging to assessee itself If the creditors explanation about the source of deposits is not found to be acceptable, the investment owned by such persons may be subjected to proceedings for inclusion of the amounts as their income from undisclosed sources or if they are found benami, the real owner can be brought to tax. In the absence of anything to establish that the sources of the creditors deposits flew from the assessee, the cash credits cannot be treated as unexplained income of the assessee. 14. Applying the proposition of law laid down by the Hon ble Jurisdictional High Court to the facts of the instant case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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