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TMI Blog2024 (10) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... e light of the ratio laid down by the Hon'ble Apex Court in case of Orissa Corpn. (P.) [ 1986 (3) TMI 3 - SUPREME COURT ] and the decision of this Tribunal in assessee s own case[ 2024 (7) TMI 1535 - ITAT KOLKATA] we find that the assessee has successfully explained the nature and source of the alleged unsecured loan and has proved the identity and creditworthiness of the cash creditors and genuineness of the transactions and therefore, we fail to find any infirmity in the finding of the ld. CIT (A) deleting the impugned addition u/s 68 of the Act and also deleting the interest disallowance made by the ld. AO. Accordingly, grounds of appeal raised by the Revenue are dismissed. - Dr. Manish Borad, AM And Shri Sonjoy Sarma, JM For the Assessee : Shri Sunil Surana, AR For the Revenue : Shri Pradip Kumar Biswas, DR ORDER PER DR. MANISH BORAD, AM: This appeal at the instance of the Revenue is directed against the order of National Faceless Appeal Centre, Delhi [the learned CIT (A)] dated 17th January, 2024, which is arising out of the assessment order under Section 143(3) of the Income-tax Act, 1961 (the Act) dated 26th April, 2021. 02. Brief facts of the case are that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - were not in his procession during the course of assessment proceedings. 2. That on the facts and circumstances of the case, the learned CIT (A) erred to give a relief of ₹ 22,99,882/- despite of the fact the Assessing Officer has added back the entire interest component of ₹ 42,19,262/- on the unsecured loan following genuineness and creditworthiness of the same were not in his procession during the course of assessment proceedings. 06. The Ld. DR vehemently argued supporting the order of the AO. and, on the other hand, the Ld. counsel for the assessee supported the order of the Ld. CIT (A). 07. We have heard the rival contentions and perused the records available on record. The Revenue is aggrieved with the finding of the ld. CIT (A) deleting the addition made by the ld. AO made u/s 68 of the Act for the alleged unsecured loan for ₹ 1,96,50,000/- and deletion of disallowance of interest of ₹ 22,99,882/-. The ld. AO during the course of assessment proceeding observed that the assessee, who is engaged in the business of saree and other dress material has taken unsecured loans from various parties to the tune of ₹ 7,32,58,026/-. The ld. AO was dissatis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, Cotton Street, Kolkata-07 AKCPT7646C 21. Sudha Agarwal 2,59,288 2G, Judges Court Road, Kolkata-27 ADAPA3682M 22. Sunil Kumar Keshwani 10,00,000 53, Kamla Nehru Marg, Freegunj, Madhavnagar, Ujjain MP ASPPK3783P 23. H.R. Fashion 35,00,000 0 10/1/C Kalakar Street, 2nd Floor, Kolkata-007 APZPS3812E Total 1,96,50,000 32,73,698 08. From perusal of the above details, it is noticed that the assessee has furnished the details of address and PAN no. of each of the parties. U/s 68 of the Act, assessee is required to discharge the primary onus casted upon it to explain the nature and source of the sum credited in its books of account by way of proving and explaining the identity and creditworthiness of the cash creditor and the genuineness of the transactions to the satisfaction of the ld. AO. Now, the assessee, who is into the business of sarees and dress material has taken unsecured loan for its business purposes. Assessee has been consistently taking and repaying unsecured loans from various parties and interest is duly charged there on and TDS if applicable is deducted and deposited. The books of accounts are regularly audited and in the tax audit report, details are furnished about the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some evidence on which a conclusion could be arrived at, no question of law as such arises. 14. It is common ground that the question on the penalty aspect depended on the quantum aspect. 15. In the premises it cannot be said that any question of law arose in these cases. The High Court was, therefore, right in refusing to refer the questions sought for. The appeals, therefore, fail and are dismissed with costs. 011. We further observe that in assessee s own case for the very same assessment year, where the addition confirmed by ld. CIT (A) were challenged before this Tribunal, this Tribunal after discussing the facts of each of the cash creditors has deleted the addition confirmed by Ld. CIT (A) observing as under: - 10. To summarize, we find that ld. CIT(Appeals) has confirmed the addition under section 68 of the Act either on account of wrong PAN or no PAN or just confirmed on the basis of analysis of ld. Assessing Officer. After going through the details, we are satisfied that the assessee has successfully explained the identity and creditworthiness of the cash creditors and genuineness of the transactions with sufficient evidences and that nature source of the alleged cash cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are dismissed. 11. Respectfully following the above decision as well as the other decisions referred herein above, we after thoroughly examining the details filed by the assessee are satisfied with nature and source of alleged cash credit and the same having been explained to our satisfaction and thus set aside the filing of ld. CIT(Appeals) and delete the impugned addition made under section 68 of the Act at Rs. 1,26,50,000/- and also delete the disallowance of interest of Rs. 9,45,564/- confirmed by the ld. CIT(Appeals), which was paid by the assessee to the alleged cash creditors. Thus Grounds No. 1 2 raised by the assessee are allowed. 012. In the light of the ratio laid down by the Hon'ble Apex Court in case of Orissa Corpn. (P.) (supra) and the decision of this Tribunal in assessee s own case and also examining the facts of the instant case in the light thereof, we find that the assessee has successfully explained the nature and source of the alleged unsecured loan and has proved the identity and creditworthiness of the cash creditors and genuineness of the transactions and therefore, we fail to find any infirmity in the finding of the ld. CIT (A) deleting the impugned a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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