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TMI Blog2021 (12) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 4,42,46,9727- made u/s. 68 of the Income Tax Act, 1961 on account of unexplained cash credit, without appreciating the following factual and legal aspects:- a) Though the unsecured loans of Rs. 4,42,46,9727- were not received in the A.Y. 2010-1 1, if any sum is found to be credited in the books of accounts of an assessee maintained for any particular year, the assessee should prove the identity, genuineness and creditworthiness of the creditors. b) The statute has not differentiated between unsecured loans received during the year and carried forward unsecured loans from the previous year. The intention of the legislature is that the identity, g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned Assessing Officer made an addition under section 68 of the Income-tax Act with respect to a sum of Rs. 94,50,000/- received from three parties, a sum of Rs. 3,93,47,000/- from six parties and Rs. 2,11,96,970/- from five parties. Further addition of Rs. 75,38,000/- was also made under section 69 of the Income-tax Act with respect to cash deposit in the bank account. Assessing Officer also disallowed interest expenditure of Rs. 16,57,379/-. Accordingly, the assessment order under section 143(3) of the Act was passed by the learned Assessing Officer on 19/03/2013 determining total income of Rs. 8,03,63,470/-. 06 Assessee, aggrieved with the order of the learned Assessing Officer, preferred appeal before the learned Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. 09 The learned authorized representative submitted that the learned Assessing Officer has made the addition under section 68 of the Income-tax Act of sum of parties who have given advances to the assessee for purchases. He submitted that in most of such cases, the assessee has also submitted before the learned Commissioner of Income tax (Appeals), the account confirmation letters and the copies of cheques received along with bank account, permanent account numbers of the parties. He further submitted that when the sum is not credited in the books of the assessee during the previous year, the same could not have been added under section 68 of the Act and, therefore, that addition was deleted. He supported the deletion of addition to tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,970/-. However, the learned Assessing Officer is challenging the deletion of the addition of Rs. 4,42,46,970/-. The learned Assessing Officer, as per ground 1(b), has stated that even the carry forward of unsecured loans are required to be added under section 68 of the Act. On plain reading of provisions of section 68 of the Act, we do not agree with the above contention. Furthermore, the learned departmental representative stated that the learned Commissioner of Income tax (Appeals) should have given a direction for making an addition of the above sum in the year in which such sum was received. We fail to appreciate this argument because of the reason that the learned Assessing Officer raises no such ground of appeal. Even otherwise, what ..... X X X X Extracts X X X X X X X X Extracts X X X X
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