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TMI Blog2020 (1) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... erusal of the bank statement of the creditor filed by the assessee, it is observed that nowhere it is shown that the assessee has any other income routed through the bank. From the above, it can be inferred that the creditor is a man of means and the creditworthiness of the lender is not substantiated by furnishing the required details as called for by the Assessing Officer as per section 68 of the Income tax Act. In our considered view, the AO is justified in making the addition and ld CIT(A) is fully correct in confirming the same. Penalty u/s 271(1)(c) - HELD THAT:- Penalty order is based on furnishing of inaccurate particulars but the notice is not specifying exactly on which limb the penalty u/s 271(1)(c) has been initiated. From the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal but the sole issue involved is that the ld CIT(A) erred in confirming the addition of ₹ 8,00,000/- on account of unexplained cash credit u/s.68 of the Act. 4. Facts in brief as emanated from the orders of lower authorities are that during the course of assessment proceedings, the Assessing officer noticed that the assessee has shown unsecured loans of ₹ 43,04,368/-. The Assessing Officer required the assessee to furnish its bank accounts and the details of all the loan creditors with sources of cash deposits in their bank accounts. Before the AO, the assessee furnished its bank statement with both the loan creditors namely, Shri Basanta Bihari and M/s. Kalinga Minerals. On perusal of bank statement of Shri Basanta Bihari, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the creditor Shri Basanta Bihari is one of the Director of the assessee company having PAN No.AGNPB 9280 C and regularly filing the income tax returns showing the source of income. Ld counsel submitted that the loan transaction of ₹ 8,00,000/- is not a single transaction but Shri Bihari has given advances on several occasions to the assessee being a Director of the assessee company. Thus, the assessee discharged its burden and it was thereafter for the Assessing Officer to show by bringing material on record that cash creditor was not genuine or that the cash creditors did not have creditworthiness to advance the money to the assessee. He argued that no such material has been brought on record by the Assessing Office a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the creditor for the said assessment year is taken into consideration then, there will be no surplus in hand to advance the money to the assessee. On other hand, the assessee was unable to submit that there is any interest has been paid on this loan to the lender in the impugned year or in the subsequent year. It was for the assessee to prove that the loan creditor had advanced the money out of the income of any other source like his capital i.e. saving of earlier years or receipt from any other person from which the loan creditor could have advanced the loan. The observation of the Assessing Officer while making the addition u/s.68 of the Act is that the loan creditor has deposited the amount in cash of ₹ 7,90,000/- before issui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the said notice deserves to be set aside. The Ld. AR relied upon the decision of the Hon'ble Karnataka High Court in the case of CIT vs. Manjunatha Cotton & Ginning Factory reported in 359 ITR 565 and also the decision of the Hon'ble Apex Court in case of CIT Vs. SSA's Emerald Meadows (2016) 73 Taxman.com 248 (SC). The Ld. AR accordingly submitted that the order of the CIT(A) be set aside and the penalty levied u/s 271(1)(c) be deleted. 12. On the other hand, the Ld. DR strongly supported the orders of the authorities below. 13. We have heard the rival submissions and perused the material available on record, inter alia, notices u/s.274 read with section 271(1)(c) of the Act dated 12.3.2014. We find the only issue to be decided in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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