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TMI Blog2022 (11) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ot comply with the summons issued under Section 131 of the Act, the addition has been made. Non-compliance with the summons issued u/s 131 of the Act can be for various reasons. However, that cannot be the solely criteria to treat the loan received as unexplained cash credit u/s 68. Unfortunately, learned first appellate authority has decided the issue in a very cryptic manner without independent application of mind. When the transaction has been carried out through banking channel by way of account payee cheque, it is not understood how there can be an issue regarding the genuineness of the transaction. Nothing prevented the departmental authorities to exercise the statutory powers vested in them to get to the root of the matter, irr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount under Section 68 of the Act. Though, the assessee contested the addition by filing an appeal before the learned Commissioner (Appeals), however, the addition was sustained. 5. I have considered rival submissions and perused the material available on record. 6. It is evident, the assessing officer treated the deposit of Rs.10,00,000 made in the bank account as unexplained cash credit for the reason that the assessee was unable to explain the source and nature of such deposits. However, in course of proceedings before learned first appellate authority, the assessee furnished his explanation explaining the source and nature of the deposits. It was submitted by the assessee, the amount was received from Shri Joginder Singh throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.10,00,000 was deposited by cash in the bank account. Thus, prior to the issue of cheque to the assessee, the lender had sufficient fund available with him. From the aforesaid evidences available on record, the following facts emerge, firstly, the identity of the creditor has been established, secondly, the transaction has been made through banking channel by way of account payee cheque and thirdly, the lender has funds available with him to advance the amount. As could be seen, only because the lender did not comply with the summons issued under Section 131 of the Act, the addition has been made. Non-compliance with the summons issued under Section 131 of the Act can be for various reasons. However, that cannot be the solely criteria to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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