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TMI Blog2020 (1) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... ch repayments were routed back to the payer, the transaction becomes genuine and therefore, there is no need for suspecting the same. The transaction becomes so genuine more so when the payments and repayments are done through the banking channels. AO is directed to examine whether the repayments are properly appropriated by the creditors, if not routed back into the accounts of assessee. Reasonable opportunity of being heard to the creditors is to be given in case such enquiries are undertaken. Thus, keeping all the issues open relating to the addition - Grounds remanded back to the file of AO. Appeal of assessee is treated as allowed for statistical purposes. - I.T.A. No. 1337/HYD/2017 (Assessment Year: 2012-13) - - - Dated:- 4-12-2019 - SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER For Assessee: Shri P.Murali Mohana Rao, AR For Revenue: Shri Nilanjan Dey, DR ORDER PER D. KARUNAKARA RAO, A.M. : This appeal of assessee is directed against the order of the Commissioner of Income Tax (Appeals)-6, Hyderabad, dated 10-04-2017, for the AY.2012-13. 2. At the outset, referring to the Grounds of Appeal, Ld.Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Sushma Agarwal 8,00,000 9. Champa Devi 3,00,000 10. Shankardevi 10,00,000 11. Benet Ibrahim 5,00,000 12. Jigna Mehta 5,00,000 13. Rajiv Ratna 3,00,000 Accordingly, CIT(A) granted part relief to the assessee. 5. Aggrieved with the said order of the CIT(A), the assessee filed this appeal before the Tribunal with the Ground mentioned above. 6. Ld.Counsel for the assessee submitted that it is the case where the loans are repaid in subsequent period. Based on this fact, Ld.Counsel mentioned that these repayment details were not placed before the lower authorities. Therefore, this additional information if considered, assessee is likely to get relief substantially. Further, Ld.Counsel furnished a Written Submission in this regard. Relevant lines from the Written Submissions are extracted as under: In this regard, it is humbly submitted that all the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27.09.2019 It is to submit that in all the above cases, affidavits/confirmations are filed from the creditors acknowledging the transactions and the sources. In order to establish the identity of the creditors, copies of PAN Cards were also submitted. Apart from that, copy of bank statements were also submitted. Further, copies of Income Tax Returns of the lenders, except in respect of those mentioned at Sl.nos.6,7 11 above for the assessment year under consideration have also been supplied to the Assessing Officer and the amounts lent by them to the assessee are also reflected in the statement of affairs filed by the lenders before the Income Tax Department for the assessment year under consideration. However, without considering all these details, the Assessing Officer made the addition. During the appellate proceedings, the Ld. CIT(A) remanded the issue to the Assessing Officer for examination of the creditors. In the remand report dated 15.02.2018, the Assessing Officer after examining the creditors has stated that in the case of the creditors of Sri. U. Vijay Kumar and Smt.Seema Bucha, the assessee has proved their identity, genuinenes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee . 6.1. Further, Ld.Counsel submitted that the assessee discharged initially the onus, which is required u/s.68 of the Act. If accepted, the fact of repayment of the loans to the creditors should help the AO to decide in favour of the assessee. Further, Ld.Counsel explained the provisions of Section 68 of the Act. Eventually, Ld.Counsel argued that the entire addition is required to be deleted. Without prejudice, Ld.Counsel also submitted that since the facts of repayment are not placed before the lower authorities, the issue can be remanded to the file of AO for fresh adjudication, after considering the fact of repayment of the loans to the creditors. 7. Per contra, Ld.DR for the Revenue relied heavily on the order of AO and the CIT(A). Ld.DR further submitted that this is the case where creditors do not have creditworthiness to lend so much of loans to the assessee. The facts relating to the depositing of cash before the cheques are issued in their hands and also the fact relating to withdrawal of action, after repayment is made would also go against the assessee. Referring to the additional evidences placed at Pgs.81 to 83, Ld.DR submitted that the said evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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