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TMI Blog2020 (2) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... ear: 2010-11, 2011-12 & 2012-13) - - - Dated:- 27-12-2019 - SHRI PRAMOD KUMAR, VICE-PRESIDENT AND MS. MADHUMITA ROY, JUDICIAL MEMBER Assessee by: Shri J P Shah, AR Shri Manish Shah, AR Revenue by: Shri O P Sharma, CIT-DR ORDER PER MS. MADHUMITA ROY, JUDICIAL MEMBER: 1. This bunch of appeals filed by the assessee is directed against the common order dated 05.04.2016 passed by the Learned Commissioner of Income Tax (Appeals)-12, Ahmedabad, arising out of order dated 27.03.2014 issued by the Learned Deputy Commissioner of Income-tax, Central Circle 2(2), Ahmedabad for Assessment Years 2010-11, 2011-12 and 2012-13 respectively, arising out of a search action carried out under Section 132 of the Income-tax Act, 1961 (hereinafter referred to as the Act ) in the group cases of Ankur Dalal Group on 28.03.2012. Since all the matters pertain to the common search proceedings and relate to the same assessee, these cases are heard analogously and are being disposed of by a common order. 2. IT(SS)A No. 214/Ahd/2016 has been taken as the lead case. The brief facts leading to this case is that subsequent to the search proceedings carried out in the group case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vangiben R. Patel. Hence, the instant appeal before us. 3. At the time of hearing the instant appeal, the Learned Counsel for the assessee appearing before us submitted that the details as asked for by the authorities below were duly provided by the assessee, i.e. confirmation of accounts, bank statements and the confirmation of sources of source; the return of income along with the computation of the depositors including the source of deposit i.e. out of the amount received from various persons, which was exactly the same in respect of other parties who had extended loan to the assessee; and, upon consideration of those material and evidences, additions were deleted by the Learned CIT(A) except in the case of Smt. Kalpanaben. It was further pointed out by the Learned Counsel that the assessee is liable to disclose only the source and/or sources from where he himself received the credit and it is not the burden of the assessee to show source and/or sources of his creditors or to prove the creditworthiness of source of sub-creditors. Since the assessee had all along and all through provided the entire details of transactions with Smt. Kalpanaben Thakkar, thereby sought to justif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prove the creditworthiness has been sought to be complied with in its best possible manner. It may be a fact that sources of source could not be found even at the appellate stage as it appears from the remand report, but for the same the assessee cannot be made liable, neither the addition of such amount of loan extended to the assessee can be made in the hands of the assessee. It is a settled principle of law that, in terms of Section 68 of the Act, the assessee is only liable to disclose the source and/or sources from where he has received credit and it is not the burden of the assessee to show source(s) of his creditor, neither it is the burden of the assessee to prove the creditworthiness or source of sub-creditors. 5. We have further carefully considered the judgments relied upon by the Learned Counsel for the assessee; the judgment passed by the Hon ble Delhi High Court in the matter of Shiv Dhooti Pearls Investment Ltd (supra) where the identical issue was considered. The relevant portion of the said judgment is as follows:- 14. In Mod. Creations Pvt. Ltd. (supra) this Court negatived the case of the Revenue that the onus was on the Assessee to prove the sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n law for the Assessee to prove the genuineness and credit worthiness of the sub- creditor, which is in this case was TCL. 16. Consequently, the question (i) framed by the Court is answered in the affirmative, and questions (ii) and (iii) in the negative i.e., in favour of the Assessee and against the Revenue. 6. We have further considered the judgment passed by the Hon ble jurisdictional High Court in the case of D H Enterprises (supra), as cited by the Learned Counsel for the assessee wherein it has been categorically decided that in the event the concerned party does not appear before the Revenue irrespective of the summons being sent upon it, the transactions cannot be held to be non- genuine, particularly when the amounts have been extended through cheques in the ordinary course of business. The relevant observations of the Hon ble jurisdictional High Court in this regard is reproduced herein below:- 7. Thus, from the facts noted hereinabove, it is evident that the assessee had produced all relevant details in its possession, namely, names, permanent account numbers, income tax returns, and bank statements of all the investors. The amounts in question had b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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