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TMI Blog2022 (10) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... icion and before ld. AO, he could not explain the source of the said cash deposit in his bank account. Therefore, assessee failed to prove the creditworthiness of the cash creditors advancing loan to the assessee. Decided against assessee. Disallowance of deduction u/s 54F - expenditure incurred on construction of residential building - HELD THAT:- Finding of ld. CIT(A) which remained uncontroverted from the assessee s side by placing any material on record and also under the given facts and circumstances of the case where two of the parties from whom the assessee purchased the material have denied to have made any such transaction with the assessee and the inspector deputed by ld. AO on enquiry found that the bills drawn were not genuine, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surmises only inasmuch as the said transactions were through proper banking channel, loanees are assessed to tax since past and the said loans were duly reflected in their respective balance sheets. 1c. That, the Ld. CIT(A) further erred in upholding the addition of 42,10,000/- u/s.68 without considering that the loanees had appeared in person before the A.O. and submitted their details of source of such loans out of the gifts received from their parents, bank statements showing deposits of the said gifted amounts and confirmations of loans given to the appellant, thus establishing their identities, creditworthiness and genuineness of the transactions. 1d. That, despite providing all requisite details and supporting evidences in support of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of lawful deduction u/s.54F on that ground is without any valid reason and bad in law. 2d. That, the Id. revenue authorities further erred in disallowing deduction u/s. 54F solely on the irrelevant consideration that purchases of building materials were made from far distant place when the same were locally available at Haldia itself without mentioning any legal bar for such purchase at a cheaper rate. 3. That, as the order of Ld. C.I.T.(A) on the above issues suffer from illegality and is devoid of any merit, the same should be quashed and your appellant be given such relief(s) as prayed for. 4. That, the appellant craves leave to amend, alter, modify, substitute, add to, abridge and/or rescind any or all of the above grounds. 3. From ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A). 9. We have considered the materials placed before us and also carefully gone through the submissions made by ld. D/R. As regards the 1st issue, for addition for unexplained cash credit u/s 68 of the Act at Rs. 42,10,000/-, we find that the alleged loan comprises of two amount of which Rs. 12,10,000/- is received from Arun Kumar Bhowmik and Rs. 30,00,000/- from Bandana Bera Bhowmik. Identity of the cash creditors is not in dispute as both the alleged cash creditors acknowledged to have given the loan to the assessee. However, the other two limbs of Section 68 of the Act i.e. genuineness and creditworthiness of the transaction remained in doubt. Though, considerable efforts were made by ld. AO by making enquiry on many occasions which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prove the creditworthiness of the cash creditors advancing loan of Rs. 42,10,000/- to the assessee. We, thus, fail to find any infirmity in the finding of ld. CIT(A) and dismiss ground no. 1a, 1b, 1c 1d of the assessee s appeal. 11. As regards the second issue of deduction claimed u/s 54F of the Act for the expenditure incurred on construction of residential building, we find that ld. CIT(A) confirmed the action of ld. AO observing as follow: I have considered the submission of the AR of the appellant in the backdrop of the assessment order. In the remand report submitted by the AO it is observed that even after considerable opportunities were provided by the AO the appellant could not prove the genuineness of the expenses incurred for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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