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TMI Blog2023 (7) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and circumstances of the case as well as law on the subject, the learned CIT (Appeals) has erred in sustaining an addition of Rs. 71,94,139/-, in view of Section 68 of the Act, on account of unexplained cash credits. 2. It is therefore prayed that the above additions made by assessing Officer and confirmed by learned CIT (Appeals) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 3. Before us, the counsel for the assessee submitted that Ld. CIT(Appeals) has confirmed the additions under section 68 of the Act amounting to Rs. 71.94 lakhs, on account of unexplained cash credits. However, out of the above amounts confirmed by Ld. CIT(Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted in the unsecured loan account. Apart from the immediate deposits and transfer no substantial balance was noted in fee account of Shri Gaurav Viradia. During the remand proceedings appellant was requested to produce Shri Gaurav Viradia for examination and verification and also notice was issued u/s 133(6). But Gaurav Viradia has neither attended before the AO nor produced any details or explanation with regard to immediate deposit of amounts in his accounts. Therefore, the genuineness and creditworthiness of this transaction is not proved. The onus is cast upon the appellant to prove the genuineness and creditworthiness of transaction reflected in his books, which he failed to discharge. The appellant's rejoinder to remand report on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rav Viradia were furnished before Ld. CIT(Appeals) and also before the AO in the remand proceedings. The counsel for the assessee submitted that all transactions took place though the banking channels and further the return of income of Shri Gaurav Viradia were also placed on record. Besides the above, the confirmation of Shri Gaurav Viradia and the bank account of Shri Gaurav Viradia were also placed on record, which established the identity and creditworthiness of the lender. The counsel for the assessee drew our attention to pages 42-43 of paper book dated 05-01-2023 and submitted that the assessee had received a total amount of Rs. 33 lakhs from Shri Gaurav Viradia and had returned an amount of Rs. 4 lakhs to the above party. The counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia did not cause appearance in person, does not lead to the inference that the identity of lender or his creditworthiness has not been established by the assessee. In view of the above facts, we are of the considered view, that no addition under section 68 of the Act is called for in the case of Shri Gaurav Viradia. 6.1 So far as the other lender, Shri Alpesh Patel (Rs. 8 lakhs) is concerned, Ld. CIT(Appeals) made a specific observation that cash was deposited in the bank account of the lender, immediately before extending the loan to the assessee. Further, even perusal of the bank statement of the lender shows certain apparent discrepancies, for which no plausible explanation has been given by the assessee. Therefore, in the instant facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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