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TMI Blog2020 (1) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... total income of Rs. 67,07,650/-. During the course of assessment proceedings, the AO noted that the assessee has received a loan of Rs. 27 lakhs from M/s Ram Alloy Casting Pvt. Ltd. The assessee filed photo copy of confirmation along with copy of bank account and ITR. From the details so furnished by the assessee, the AO noticed that the credit worthiness of the lender is not satisfactory and transaction is doubtful as the income returned by the lender was Rs.nil. Therefore, it is difficult to accept the advance given by the lender to the assessee. On perusal of the bank account, he noted that there were transfer entries and cash deposit which shows the possibility that the lender was providing accommodation entry to the assessee. He, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A), the assessee is in appeal before the Tribunal raising the following grounds:- "On the facts and in the circumstances of the case and in law, the ld.CIT(A) erred in: 1. Confirming the additions made by the Assessing Officer on account of loan from M/s Ram Alloy Casting Pvt. Ltd. By treating the same as unexplained cash credit in a sum of Rs. 27 lacs; 2. Confirming the addition made by the Assessing Officer on account of purchases of paddy husk & wheat straw to the extent of 2% of cash purchases as against 5% disallowed by the Assessing Officer. Both the above actions being arbitrary, erroneous, misconceived and unjust must be quashed with directions for relief." 4. The ld. Counsel for the assessee strongly challenged the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. AR has filed only one page of bank statement (Paper Book Pg. 50), it is the copy of PNB bank statement of depositor starting from 12.08.2011 upto _.08.2011 (date is not clear). The first entry in this bank statement is of Rs. 20 lacs issued to appellant. The source of the credit in the bank is not available as it is the very first entry. Thereafter, on 16.08.2011, there is a cash deposit of Rs. 4,19,500/-, the source thereof is also not known. The last but one entry in the bank statement is of Rs, 7 lacs issued to appellant and the source of immediate preceding credit entry of Rs. 7 iacs is also not apparent. It appears that the bank statement has been given for such a limited period so as not to enable anyone to examine and whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The authority of, CIT VS. ANURAG AGAWAL 229 TAXMAN 532 (ALL.), is for the proposition that if the genuineness of the transactions stands proved, Sec. 68 has no applicability. In the present case, the AO is not satisfied with the genuineness of the transaction, hence, the ratio of this case is also not applicable. In the case of CIT VS. MARK HOSPITALS (P) LTD. 373 ITR 115 (MAD.), the assessee had produced the evidences to prove the credit worthiness and the genuineness of the transaction, in this case the assessee has failed to produce relevant evidence and failed to discharge it's onus and in the light of these facts, it was held that the assessee had fulfilled requirements of Sec. 68. Hence, this authority is also inapplicable. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e attracted on the amounts representing the purchases made on credit. This authority is also not on the issue under consideration. The reliance placed on these authorities is misplaced. Under these facts, I am of the considered opinion that the appellant has not been able to discharge his onus w.r.t. the requirements of Sec. 68 and specially in proving the genuinnity of the transaction and the credit worthiness of the cash creditor. In vide of above discussion, I am of the considered opinion that the AO has been justified in making addition of Rs. 27 lacs U/s. 68 of the l.T. Act. In the result this ground fails." 5. He submitted that given an opportunity, the assessee is in a position to substantiate the credit worthiness of the same lende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the ld. Counsel for the assessee that given an opportunity, the assessee is in a position to produce the said party along with necessary documents to substantiate their credit worthiness. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the AO with a direction to give one final opportunity to the assessees to substantiate its case by producing the said party before him. The AO shall decide the issue as per fact and law. The AO, while deciding the issue, shall keep in mind the various decisions relied on by the ld. DR. We hold and direct accordingly. The first ground raised by the assessee is accordingly allowed for statistical purposes. The ld. Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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