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TMI Blog2023 (3) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid loan was also repaid back by the company to Shri Shivlal Manjibhai and copy of account statement reflecting the repayment to Shri Prakashbhai Shivbhai has also been produced before us. Accordingly, assessee has been able to substantiate identity, creditworthiness and genuineness of transactions in respect of unsecured loan taken from Shri Prakashbhai Shivbhai. Second creditor Shri Shivlal Manjibhai, we observe that the assessee has filed various details like copy of confirmation from Shri Shivlal Manjibhai before ld. CIT(A), copy of agricultural forms Shri Shivlal Manjibhai, copy of confirmation from Smt. Laxmiben Manjibhai dated 10- 06-2021 to the effect that he had advanced a sum of Rs. 97,000/- to Shri Shivlal Manjibhai, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. 3. Before we go into the merits of the case, we observe that there is delay of 164 days in filing of appeal. The counsel for the assessee submitted that the order was passed by ld. CIT(A) u/s. 250 of the Act and was served electronically on the assessee on 17-09-2021. The limitation period being 60 days would have expired on 16-12-2021. However, owing to the Covid Pandemic and considering the effect of order passed by Hon ble Supreme Court in the case Re: Cognizance for Extension of Limitation, Suo Moto Writ (Civil) No. 3 of 2020, the period till 28-02-2022 would have excluded in computing the limitation period. Accordingly, in view of the above, there is no delay in filing of appeal by the assessee. In view of the above contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the ld. CIT(A) rejected the contentions of the assessee and dismissed the appeal of the assessee with the following observations:- 1. DECISION:- The order u/s 143(3), statement of facts and the submission furnished by the appellant have been considered. 2. In this case, the appellant received unsecured loan amounting to Rs. 4,79,000/- from three parties. Out of which, the A.O. disallowed Rs. 2,29,000/- as the credit worthiness of the transaction could not be established and added back the same to the total income of the appellant. 3. In respect of loan taken from Prakashbhai Shivlal Koringa amounting to Rs. 1,29,000/- , it is seen that he has a total annual income of Rs. 2,50,000/- only. From his bank account, it is se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the additions in respect of the two depositors were added without any basis in the hands of the assessee. In respect of the first depositor, Shri Prakashbhai Shivbhai, the assessee submitted that Shri Prakashbha Shivbhai is a mechanical engineer and was working with M/s. Ajanta India Ltd. for a long time. His yearly salary was about 2,50,000/-. He is having PAN No. CURPK2255A and had filed return of income for assessment year 2016-17 2017-18 even though his income was below taxable limit. The counsel for the assessee submitted that Shri Prakashbhai Shivbhai was receiving salary in cash from the company and he was handing the salary to his father Shri Shivlal Manjibhai who is an agriculturist. At the time of demonetization, his father gav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut has also furnished proof of source of source of money received by the creditor from which the above amount of Rs. 1,00,000/- was advanced to the assessee. Copy of bank passbook of the depositor/creditor, copy of confirmation of depositor Shri Shivlal Manjibhai, copy of confirmation of Smt. Laxmiben Manjibhai, details of possession of agricultural land by Shri Shivlal Manjibhai have all been furnished. Accordingly, the ld. CIT(A) has erred in confirming addition of Rs. 1,00,000/- in the hands of the assessee firm from Shri Shivlal Manjibhai. In response, the ld. Departmental Representative relied upon the observations made by the ld. CIT(A) in the appellate proceedings. 7. We have heard rival contentions and perused the material on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10- 06-2021 to the effect that he had advanced a sum of Rs. 97,000/- to Shri Shivlal Manjibhai, copy of agricultural forms of Shri Shivlal Manjibhai were also furnished before ld. CIT(A) during the course of appellate proceedings. Further, before us, the counsel for the assessee has also produced extracts of the bank statement reflecting repayment of the above amount back to Shri Laxmiben Manjibhai which was repaid through banking channel. In the light of the above facts, we are of the considered view that the assessee has been able to establish identity, creditworthiness and genuineness of the transaction in respect of both the unsecured loans. Accordingly, in the light of the above facts, we are of the considered view that in the instant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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