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TMI Blog2024 (10) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. AR. Upon perusal of the same, it could be seen that in many cases, the assessee has repaid the loan back to the lenders. All the loan creditors have confirmed the transactions. As against this, Ld. AO rejected the same without any cogent reasons. AO, while accepting a part of the loan from a particular lender has rejected the other part of the loan which is without any logic or justification. It could also be seen that no independent enquiries whatsoever has been conducted by Ld. AO to verify the claim of the assessee. No notice u/s 133(6) has been issued to any of the lenders. Once the assessee has furnished the requisite documents to support its case, the onus would shift on Ld. AO to controvert the same. No investigation is shown to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as under: - 1. The order of the learned CIT(A) is contrary to law, facts and circumstances of the case. 2. The learned CIT(A) erred in holding that the appellant furnished the details of source of fund towards payments made for purchase of property whereas the assessee has furnished merely the address, PAN, ITR Acknowledgment of the loan Schedules etc., required for proving the credit worthiness of the creditors and also the genuineness of the transaction? 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restored. As is evident, the sole issue that arises for our consideration is addition made by Ld. AO on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statements of respective parties / lenders / loan creditors duly highlighting the transactions. All the loans were stated to be received through banking channels. By furnishing the same, the assessee submitted that it had duly established the identity, creditworthiness and genuineness of the loan creditors. The assessee obtained loans of Rs. 1309.59 Lacs from various parties, the details whereof has been extracted in para-9 of the assessment order. 2.4 However, Ld. AO made following observations with respect to these parties: - 9.1 The assessee has not submitted evidences regarding unsecured loans in respect of parties mentioned at Sr.Nos.2,3,6,7,12,17,20,35,36,38,40 and 41. Therefore, source of investments has not been proved to the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investment made by the assessee during this year was tabulated as under: - Total value of transaction entered by the assessee as stated by your good self on page no. 16 of the show-cause notice Rs.14,97,69,500 Less: Transaction relating to agreement to sale and which were subsequently cancelled. Rs.7,39,65,000 Value of sale deed executed Rs.7,58,04,500 Value of amount paid by the assessee during A.Y 2016-17. Rs.8,69,97,338 2.6 However, rejecting the submissions of the assessee, Ld. AO held that out of investment of Rs. 1497.69 Lacs, the assessee could prove sources to the extent of Rs. 109.17 Lacs only. Therefore, the balance amount of Rs. 1388.52 Lacs was treated as unexplained credit and added to its income u/s 69. Appellate Proceedings 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during this AY was Rs. 869.97 Lacs only. The assessee already submitted date-wise details of payments. The properly transaction with Mr. Rose and Mr. Prem Kumar took place over a period of three years from F.Y. 2014-15 to F.Y. 2016-17. All the payments except for an amount of Rs. 18.75 Lacs were paid through banking channels only. During the course of assessment proceedings, the assessee had furnished copies of all documents, i.e., sale deeds and agreements to sale entered into by the assessee during the year. Almost all the agreements to sale entered by it during the year were cancelled during the next year due to various reasons. The same was evident from encumbrance certificates. 3.4 It was further noted that the assessee had furnished t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee also furnished the confirmation of accounts along with copies of Income Tax Returns (ITR-V) and bank statements of all the loan creditors. Under these circumstances, it could very well be said that the assessee had duly discharged the onus as casted under law i.e., to establish identity of the lender, their creditworthiness and the genuineness of the transactions. All loans have come through banking channels. The assessee has paid interest thereon and deducted applicable TDS against the same. The loans have duly been confirmed by all the lenders. The complete documents of all the loan creditors have been placed by Ld. AR in the paper-book on Page Nos. 1 to 115. Upon perusal of the same, it could be seen that in many cases, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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