9911796707
TMI Blog2020 (2) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) erred in deleting the addition made u/s 68 of the Act even though in the assessment order as well as in remand report major discrepancies on the issue of identity and credit worthiness of the lender, have brought in" 03. "On the facts and circumstances of the case and in law, the Id. CIT(A) failed to appreciate the fact that in the assessment order as well as in remand report the AO has clearly established the unexplained cash credit and accordingly, the interest expenditure," 04. "The appellant prays that the order of the CIT(A) on the above grounds be set aside and that of the Assessing Officer be restored. 05. "The appellant craves leave to amend or to alter any ground or add new grounds, which may be necessary." 3. The brief facts of the case are that the assessee is engaged in the business of running resorts, filed its return of income for AY 2013-14 on 30/09/2013, declaring total income at Rs. Nil. The case was selected for scrutiny and during the course of assessment proceedings, the Ld. AO noticed that the assessee has taken unsecured loan to the tune of Rs. 1,75,00,000/- from Mr. Ajeet N. Barshikar. Therefore, he called upon the assessee to file necessary evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and also, an amount of Rs. 98,250/-, towards unexplained cash credit u/s 68, in respect of amount received from M/s. Gartner India research 5. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assesee has filed detailed written submissions along with certain additional evidences, which has been reproduced at para 4 of the ld. CIT(A) order. The Ld.CIT(A), during the appellate proceedings has forwarded additional evidences filed by the assessee to the Ld.AO for examination and verification. The Ld. AO vide his remand report dated 29/06/2018 commented upon additional evidences filed by the assessee and their admissibility. The Ld.CIT(A) after considering relevant submissions of the assessee and also taken note of remand report of the Ld. AO, admitted additional evidences filed by the assessee under Rule 46A(1), on the ground that the additional evidences submitted by the assessee are crucial to the ground raised in appeal. Further, the impugned order and remand reports do not contains any details to controvert the assertion of the assesee, nor do they bring on record anything to establish that the assessee willful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pression the assessee offers no explanation means the assessee offers no proper, reasonable and acceptable explanation as regards the sums found credited in the books maintained by the assessee. The opinion of the AO for not accepting the explanation offered by the assesses as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on the record. The opinion of the AO is required to be formed objectively with reference to the material on record file. While considering the explanation of the assessee, the AO has to act reasonablyapplication of mind is the sine qua non for forming the opinion. Phrase appearing in the section - nature and sources of such credits - should be understood in right perspective, so that genuineness of the transaction can be decided on merits and not on prejudices. The evidence produced by the assessee cannot be brushed aside in a causal manner. ln the matters related to section 68 burden of proof cannot be discharged to the hilt. Such matters are decided on the particular facts of the case as well as on the basis of .preponderance of probabilities. Credibility of the explanation, not the materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly, addition made by A.O. cannot be sustained. Therefore, A.O. is directed to delete the addition of Rs,1,75,98,753/-, This ground is allowed. 7. Insofar as, additions made by the Ld. AO towards unexplained expenditure being interest paid on loan taken from Mr. Ajeet N. Barshikar, the Ld.CIT(A) held that since, the loan transaction has been considered as genuine, consequent interest paid thereon cannot be disallowed as unexplained expenditure. Accordingly, directed the AO to delete additions. Insofar as, additions made by the Ld. AO towards cash deposits found in ICICI bank account, the Ld.CIT(A) held that although, the assessee has filed necessary details during the remand proceedings, but the Ld. AO did not found any discrepancy in the documents. Therefore, directed the Ld. AO to delete additions of Rs. 56,535/-. Similarly, the Ld.CIT(A) has deleted additions made by the Ld. AO towards amount received from Gartner India Research for Rs. 98,250/-, on the ground that the assessee has explained the transactions with evidences. Aggrieved by the Ld.CIT(A) order, the revenue is in appeal before us. 8. The Ld. DR submitted that the Ld.CIT(A) was erred in deleting the addition on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A). 10. We have heard both the parties, perused the material available on record and gone through orders of the authorities below. We find that the Ld.CIT(A) had recorded categorical findings, in light of various evidences filed by the assessee, including confirmation letters and corresponding bank statement of Mr. Ajeet N. Barshikar to come to the conclusion that loan transactions between the assessee and the loan creditor is genuine transaction, which is supported by necessary evidences. The Ld.CIT(A) has also negated observations made by the Ld. AO with regard to discrepancy in certain documents filed by the assesse with regard to loan creditor and noted that said discrepancy in the documents is nothing to do with the transactions with the assessee. We further noted that the assessee has filed a paper book explaining the transactions between the assesee and the loan creditor. We find that the assesee has filed complete set of documents with regard to each and every amount of loan given to assessee right from 03/01/2012 to 02/11/2012 and also explained corresponding source of income for amount transferred to the assesse. We further noted that the loan creditor has explained t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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