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TMI Blog2024 (3) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... e, accordingly, delete the same and allow this ground of appeal. Unexplained cash credit u/s 68 - AO was not satisfied with creditworthiness of the lender and made addition - HELD THAT:- We find that Shri Ajay Gupta was having a pre-existing deposit with M/s Unitrade Service and by making recoveries therefrom, made loans to assessee. Thus, there should be any doubt so far the availability of funds with the lender Shri Ajay Gupta is concerned. Ld. CIT(A) has made an observation that the assessee has taken loan from M/s Unitrade Service but as can be seen the correct position is different. It is true that funds have originated from M/s Unitrade Service but Ld. AR has shown by reference to documents in Paper-Book that Shri Ajay Gupta made a recovery from M/s Unitrade Service for giving loans to assessee. We do not find any weakness in this explanation of assessee which is fully supported by documents. Consequently, we are satisfied that Shri Ajay Gupta has made loans to assessee from funds available with him and there is no reason to treat the loans taken by assessee as unexplained. Disallowance of Charity Donation Exp - assessee submitted that impugned donations are in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order was served upon him on 05.06.2023 but on that day, the assessee s shop was closed. Therefore, he received the post but thereafter he had to go out of Bhopal for attending some urgent work and missed to deliver to assessee. Subsequently, he delivered post to assessee on 10.08.2023. This way, the impugned order dated 19.05.2023 was effectively served upon assessee on 10.08.2023 and thereafter the assessee filed present appeal on 09.10.2023 which is within prescribed time-limit. Ld. AR made a specific mention that Shri Brijesh Pandey has no relationship with assessee and his submission is correct and bonafide. Ld. AR submitted that there is no delay in filing this appeal but still if the Bench considers it as a delay, the same deserves to be condoned due to sufficient cause. Ld. AR very humbly submitted that there is no deliberate lethargy, negligence, mala fide intention or ulterior motive of assessee in making delay and the assessee does not stand to derive any benefit because of delay. Ld. DR for Revenue left the matter to the wisdom of Bench. We have considered the explanation advanced by assessee and in absence of any contrary fact or material on record, the assessee is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after obtaining remandreport from AO. However, the CIT(A) upheld addition making these observations : (i) The assessee has given address and filed A/c Confirmation and Bank Statement of the lender which proves identity but does not prove creditworthiness of lender; (ii) The assessee claimed to have repaid loan on 29.10.2012 but the bank statement was filed for the period 14.10.2009 to 30.03.2011 only; (iii) In remand-report, the AO has pointed out that the repayment was made through crossed-cheques and not through a/c payee cheques; (iv) The assessee has not paid any interest to lender. 8. Before us, Ld. AR for assessee made following arguments to show that the creditworthiness of the lender as well as genuineness are proved: (i) The assessee has taken a total loan of Rs. 6,00,000/- through cheque No. 526311 526312 each of Rs. 3,00,000/- both dated 18.01.2010, drawn on lender s a/c with Bank of Baroda. Copies of cheques are filed at Page 39 of Paper-Book. (ii) There is a credit of Rs. 6,20,000/- in lender s bank a/c through Cheque No. 19448 on 27.11.2009 which made up a credit balance of Rs. 9,11,622/- in lender s a/c on that date. The credit balance continued for about 2 months t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was a credit entry of Rs. 6,20,000/- in the a/c of lender which made up a sufficient balance for about 2 months from which the lender gave loan to assessee. It is not a case where there is any cash deposit in lender s bank a/c before giving loan to assessee. Thus, the source or creditworthiness of lender qua the giving of loan to assessee is proved. The A/c Confirmation, which is basically in the form of a certificate of lender, also makes a clear confirmation of giving loan to assessee as well as receipt of repayment subsequently from assessee. So far as the point raised by CIT(A) that the repayment has been made via cross- cheque and not a/c payee cheque, the assessee has filed complete bank statement at Page No. 43 of Paper-Book showing debit entries of payments which have a clear mention of the repayment having gone to Reshma Qureshi , lender. Therefore, any doubtful apprehension by CIT(A) in this regard is dislodged. Thus, taking into account entire conspectus, we are of the view that the assessee has filed sufficient evidences to prove the creditworthiness of loan; therefore the addition made by AO should not stand. We, accordingly, delete the same and allow this groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.2009, which is very much clear from Ledger A/c of Shri Ajay Gupta extracted from books of account of M/s Unitrade Services (Paper-Book Page 23), Debit entry in Bank Statement of M/s Unitrade Services (Paper-Book Page 25) and Credit/Debit entries in Bank Statement of lender with Axis Bank (Paper-Book Page 22) and Bank Statement of Assessee (separately filed). For the source of second tranche of Rs. 15,00,000/-, Ld. AR submitted that M/s Unitrade Services issued a Cheque No. 245085 from their Bank A/c directly in favour of assessee and the same was credited in assessee s bank a/c on 26.11.2009, which is very much clear from Ledger A/c of Shri Ajay Gupta extracted from books of account of M/s Unitrade Services (Paper-Book Page 23), Debit entry in Bank Statement of M/s Unitrade Services (Paper-Book Page 25) and Credit entry in Bank Statement of Assessee (Paper-Book Page 26). Thus, the funds of Rs. 5,00,000/- and 15,00,000/- have originated from M/s Unitrade Services in the a/c and on behalf of Shri Ajay Gupta and have reached to assessee. This is so because M/s Unitrade Services was a partnership firm of Shri Ajay Gupta s brother and Shri Ajay Gupta was having a deposit with M/s Uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta as extracted from books of M/s Unitrade Services which are filed in the Paper-Book and also analysed before us during hearing, we find that Shri Ajay Gupta was having a pre-existing deposit with M/s Unitrade Service and by making recoveries therefrom, made loans to assessee. Thus, there should be any doubt so far the availability of funds with the lender Shri Ajay Gupta is concerned. Ld. CIT(A) has made an observation that the assessee has taken loan from M/s Unitrade Service but as can be seen the correct position is different. It is true that funds have originated from M/s Unitrade Service but Ld. AR has shown by reference to documents in Paper-Book that Shri Ajay Gupta made a recovery from M/s Unitrade Service for giving loans to assessee. We do not find any weakness in this explanation of assessee which is fully supported by documents. Consequently, we are satisfied that Shri Ajay Gupta has made loans to assessee from funds available with him and there is no reason to treat the loans taken by assessee as unexplained. Being so, we are inclined to delete the addition made by AO and we do so. This ground of assessee is also allowed. Ground No. 4: 19. In this ground, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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