9911796707
TMI Blog2019 (10) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... AHMED, ACCOUNTANT MEMBER Assessee by: Shri Chetan Agarwal, A.R Revenue by: Shri Nilabhra Dasgupta, Sr.D.R ORDER PER BENCH: The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-7, Ahmedabad dated 10/01/2017 (in short "Ld. CIT(A)") arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (herein- after referred to as "the Act") dt.17/02/2015 relevant to the Assessment Year 2012-2013. The assessee has raised the following grounds of appeal. The Authorities below have erred in law and facts by Disallowing sum of ₹ 6,50,000/-on account of unexplained cash credit, even though the assessee has submitted all necessary details called for by the Id.Authorities, moreover in some cases the statements of the creditors were also recorded, assessee has fulfilled all the criteria mentioned under section 68 of the Income Tax act. The Ld.Authorites below have erred in km and facts by adding sum of ₹ 50.716/- on account of interest paid to unsecured loans. The assessee had submitted the return copies and bank statement of the concerned partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. ii. He has a family consisting of 5 members i.e. himself, wife, daughter (married) and 2 sons who are studying. The annual income of the wife from miscellaneous work is of ₹ 12,000 only. In case of Mahendra P Shah i. He has filed return of income for the year under consideration showing total income of ₹ 1,53,117/- and had a small bank balance of ₹ 27,238/- before the issue of cheque to the assessee. As such he had no creditworthiness as well as he was not the man of means to advance such loan to the assessee. ii. He has admitted in the statement furnished to the AO that his annual salary is of ₹ 90,000/- only. iii. He also admitted that he has given advance to several parties amounting to ₹ 14.10 lakhs. iv. The AO was of the view that the impugned party is an entry provider. In case of Bhavarlal L. Patel i. He has not filed return of income for the year under consideration and had a small bank balance of ₹ 991/- before the issue of cheque to the assessee. As such he had no creditworthiness as well as he was not the man of means to advance such loan to the assessee. In case of Niranjan Jain i. He has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the parties. Being aggrieved by the order of the learned CIT (A), the assessee is in appeal before us. 4. The learned AR before us filed a paper book running from pages 1 to 55 and submitted that the assessee has filed confirmation along with bank statement, PAN of all the parties. 4.1 The deposit of cash prior to the issue of cheque to the assessee by the parties in their respective account does not make the impugned transaction as unexplained and non-genuine. 4.2 The statement was recorded by the AO in case of 2 parties namely Dineshkumar L Patel and Mahendra P Shah but the same was not provided to the assessee for the cross-examination. 4.3 There was no enquiry conducted by the AO from the other parties namely Shri Bhavarlal L Patel, Ganeshlal Lumbaram Patel and Lumbaram Patel despite the fact that the assessee has furnished all the requisite details about the parties. 5. On the other hand, the learned DR vehemently supported the order of the authorities below. 6. We have heard the rival contentions of both the parties and perused the materials available on record. The facts of the case have already been elaborated in the preceding paragraph and therefore we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their creditworthiness. Mere payment by account payee cheque was not sacrosanct nor could it make a non-genuine transaction genuine." 6.3 Admittedly the assessee has discharged his onus by furnishing the necessary details such as a copy of PAN, bank details, etc. in support of identity of the parties. There is also no dispute that all the transactions were carried out through the banking channel. Therefore, we are conscious of the fact that the assessee has discharged the onus regarding the identity of the parties. 6.4 There is no doubt that the transaction of the loan was carried out through the banking channel. Therefore there cannot be any doubt about the genuineness of the transactions. In this regard, we find support and guidance from the judgment of Hon'ble High court of Bombay in the case of CIT Vs. Green Infra Ltd reported in 78 taxmann.com 340 wherein it was held as under: 'So far as the genuineness of the transaction of share subscriber is concerned, it concludes as the entire transaction is recorded in the books of account and reflected in the financial statements of the assessee since the subscription was done through the banking channels as evidenced by bank sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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