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TMI Blog2019 (11) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing officer. In respect of these two creditors, we have no doubts that these are duly explained creditors being the financial Institution/bank, hence, the addition are deleted. With respect to Renu Verma, we had already mentioned that the deposit in the bank account of Renu Verma was duly explained by her in the return of income filed by her. Further, she had also explained that the said amount was duly given by her to her husband. In our view, the assessee had discharged his onus and therefore, the addition made by the AO qua Renu Verma was uncalled for. AO was asked by the assessee during the assessment proceedings to summon all these creditors including Renu Verma, but theAO failed to exercise his powers under the Act. Hence, for this reason also, this addition is deleted. Creditor Arun Chaddha, the confirmation of account was placed by the assessee in the paper book at page 129 and 130. The amount of ₹ 5 lacs was paid by Shri Arun Chaddha through cheque drawn on Shreyas Gramin Bank, SB 791. The above said fact was not disputed by the Assessing Officer in the remand report. In view of the above, the addition made by the assessing officer on account of cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of applicability to proviso to section 40(a)(ia) is covered in favour of the assessee by the decision of Hon ble High Court in the matter of Ansal Land Mark, [ 2015 (9) TMI 79 - DELHI HIGH COURT] wherein Delhi High Court has followed the decision of Agra Tribunal in the matter of Rajeev Agarwal [ 2014 (6) TMI 79 - ITAT AGRA] - ITA No. 274/Agra/2013, C.O. No.22/Agra/2013 (A.Y. :2009-10) - - - Dated:- 4-9-2019 - Shri Laliet Kumar, Judicial Member And Dr. Mitha Lal Meena, Accountant Member Appellant by Shri Waseem Arashad, Sr. DR Respondent by Shri S.C. Jain And Shri S.K. Bajpai, CA ORDER Per Laliet Kumar, J.M: Present appeal and cross objection are being filed by the Revenue and the assessee, feeling aggrieved by the order of the ld. CIT(A)-II, Agra for the assessment year 2009-10. The following grounds have been raised by the Revenue in ITA No.274/Agr/2013: 1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of ₹ 62,13,500/- out of addition of ₹ 63,63,500/- made by AO on account of cash Deposit in bank accounts without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yee cheque on 21-04-2008, wrongly entered in the account of Mr. Bharat Bansal. 3) That the learned CIT(A) has erred in law and on facts of the case in affirming addition of ₹ 46,794/- U/S 36(l)(iii) in respect interest paid to Syndicate Bank. 4) That the learned C1T(A) has erred in law and on facts of the case in affirming addition of ₹ 92,626/- in respect of interest paid to Barklay Finance with out deduction of TDS u/s 40(a)(ia). 5) That the departmental appeal is bad in law as well as on facts and is liable to be dismissed. 6) For the reasons discussed above and to be argued at the time of hearing , respondent pray for relief. 7) The respondent craves leave to add or amend any ground of cross objection. Assessee submission ITA No. 274/Aera/2012 1. First Ground relates to deletion of ₹ 62,13,500.00 out of total addition of ₹ 63,63,500.00 made by the learned AO, the learned AO totaled the cash deposits in various 7 bank accounts at ₹ 63,63,500.00 and added the same in the income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , sister in law of the assessee and thereafter loan taken from Renu Verma. CIT Appeal thereafter in para 4.5 considered this remand report and deleted the additions. 5. In respect to amount withdrawn cash from safe, the assessee has filed the copy of audited balance sheet for the period ending 31.03.09 at page 47 and audit report ending 31.03.09 at page 74 of the Paper Book which will show that assessee has filed the copy of audited balance sheet for the period ending 31.03.2008 at page 47 - 73 and for the period ending 31.03.2009 page 74 - 104 at page 69 Paper Book, there is a capital a/c for the period ending 31.03.08 on 30.03.08, there is a debit of ₹ 20 lakhs cash in safe in the capital a/c of the assessee and thereafter at page 101 this ₹ 20 lakhs drawn on 30.03.08 has been credited in the capital account on 1st April,08 has brought in the capital a/c. Thus the credit of ₹ 20 lakhs on 01.04.2008 is out of withdrawal of ₹ 20 lakhs on 30.03.2008. This is a regular feature of assessee whenever cash is excess in cash in hand, it is kept in the safe on the last day accounting year and deposited in the 1st day of next year again. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The submissions of the assessee were sent back to the AO for sending the remand report. The Assessing Officer in remand report has examined the submissions and the documents furnished thereto. In the remand report, in para-3 at page 32 33 of the paper book, it was mentioned as under : 3. Unsecured Loans- On perusal of balance sheet, it was noticed that assesses has shown unsecured loans from the following persons namely Shri Arun Chadda, Bharat Bansal, Surendra Poddar, Nisha Agrawal, Renu Verma, sachidanand Nayak, Sudha bansal Friends, relatives others amounting to ₹ 51,88,2377-. The assessee was required to produce all the above persons along with their copy of income tax return, computation of income and bank pass book. The assessee has submitted only their confirmation but not furnished copy of ITR, Computation of income and bank statements. Hence the amount of ₹ 56,00,000/- was treated as income of the assessee from income from other sources and added to his income. As per the details furnished before your goodself, the opening balance as on 1.4.2008 ₹ 32,53,2507-, credit during the year ₹ 26,74,559/- and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,57,875 3,00,000 2. Nisha Agrawal Opening Balance 3,68,375 3,68,375 17.6.2008 Intt Paid 13,125 1.07.2008 credit 1,00,000 1,00,000 17.6.2008 debit 31,500 Closing balance 4,68,375 4,50,000 From the above, it is clear that- 1. In the case of Bharat Bansal, the assessee has shown fresh unsecured loan of ₹ 3 lacs while the loan of ₹ 1.50 lacs was confirmed by the party. The closing balances of unsecured loans is ₹ 3,00,000/- while the assessee in his books of account sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Arun Chadha 500000 500000 12 Axis Bank 0860101163454 117500 481933 364433 13 Barkley Finance 169000 942626 773626 14 Renu Verma 150000 150000 15. Shree Timber Co. 200000 200000 Total 3253250 739572 2674559 5188237 13. The CIT(A), after consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of credit of ₹ 3.00 lakhs i.e. 1.5 lakhs + 1.5 lakhs, he has confirmed only credit of ₹ 1.5 lakhs, hence ₹ 1.5 lakhs remained unexplained. 18. We have heard the rival contentions of the parties and perused the record. The Assessing Officer in the remand report had confirmed the opening balance as on 01.04.2008 pertaining to these creditors were ₹ 32,53,250/- and the creditor during the year were ₹ 26,74,559/-. The creditors during the year were as under : Sl. No. Name Amount 1. Bharat Bansal 3,00,000 2. Nisha Agarwal 1,00,000 3. Sh. Arun Chadda 5,00,000 4. Axis Bank 4,81,933 5. Barclay Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove, we do not find any reason to uphold the action of AO and accordingly, the amount of ₹ 468375/- is deleted. 23. In respect of Shree Timber, the assessee has placed at page 146 to 188 the confirmation from shree Timber through its proprietor sh. Akhil Bansal for an amount of ₹ 2,00,000/-. Even the return of income was placed on record for the relevant assessment year. Since the identity, capacity and creditworthiness of the creditor are beyond the shade of doubt, therefore, the deletion made by the CIT(A) is required to be upheld. Ground No. 2 of the Revenue appeal and ground -2 of C.O. 24. In respect to Bharat Bansal, the ld. DR has brought to our notice the copy of the confirmation filed by the assessee before the Assessing Officer and it was submitted that in the confirmation filed by the assessee, only an amount of ₹ 1,50,000 was shown as credit in the books of account of Shri Bharat Bansal and the amount of ₹ 1,50,000/- was received on 1st December, 2008. 25. In rebuttal, the ld. AR had submitted that the Bharat Bansal is a regular income-tax assessee and is maintaining mercant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was submitted that the assessee has invested from its capital to M/s. Ganesh Oxygen, Sai Om Developers, Bajaj Alliance, FDR, shares in Sahara and thus, the own funds were not available for transferring the amount to M/s. Sai Ram CharitableTrust. 30. Per contra, the ld. AR has submitted that the assessee s own capital was ₹ 61,94,824/- and unsecured interest free loans of ₹ 17,83,000/- were also available. The said amount was utilized by the assessee for making the investment in Sai Charitable Trust. The ld. AR had also relied on the decision of Hon ble Supreme Court in the matter of Hero Cycles Pvt. Ltd. vs. CIT, 379 ITR 347 and Ors. 31. We have heard the rival contentions and perused the record. In our view this ground and the other grounds adjudicated by us hereinabove in the appeal of the Revenue were not required to be decided on merit, as by the Circular dated 08.08.2019, the Board has instructed to withdraw all the appeals having tax effect of less than ₹ 50 lacs before the Tribunal. In view of the above, we are leaving this issue open and we are not deciding this issue in the present appeal. Accordingly, this ground of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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