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TMI Blog2024 (11) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... manner. No comments have been made by the AO on the documents submitted by the Assessee to establish the genuineness of the loans and creditworthiness of the lenders. There is no material whatsoever on record to establish that the loan transactions were not genuine; in fact, no attempt has also been made by the AO to that end. As observed from the assessment order, there is no enquiry made by the AO from any of the lenders from whom the Assessee had received unsecured loans. CIT(A) has rightly deleted addition. Decided against revenue. - Shri A.D. Jain, Vice President And Shri Krinwant Sahay, Accountant Member For the Assessee : Sh. Kapil Goyal, Advocate For the Revenue : Smt. Kusum Bansal, CIT, DR ORDER PER A.D. JAIN, VICE PRESIDENT: Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not proved any other intent of the donors. The receipts issued by Assessee to donors in regular course highlight the nature of donations as CORPUS which has been overlooked by A.O. There is no cogent material brought on record by the A.O. to support his action in treating the amount of corpus donation received by the Assessee under specific directions. The ultimate utilization of the donations was wrongly not taken into consideration by the Assessing Officer. 5. The books of account of the Assessee are audited, in which, corpus is directly credited to the balance sheet. There are copies of receipts issued by the Assessee to the donors, available on record, which specify that the impugned transactions are corpus donations. There is no materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e observations have righty been arrived at by the ld. CIT(A) and the Department has not been able to successfully challenge them before us. Therefore, the A.O. acted merely on assumptions without bringing any positive material to reject the explanation offered by the Assessee. Further, there is no material on record to show that the Assessee indulged in any other activity, to which, generation of the undisclosed money could have been attributed. 8. Also, while rejecting the A.O. s observations, the ld. CIT(A) has rightly held that the onus of proof is not a static one. Though in Section 68 proceedings, the initial burden of proof lies on the assessee, yet once the Assessee proves the identity of the creditors/share applicants/donors by eith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound No.1 is rejected. 11. Regarding Ground No. 2, the A.O. in his order has observed that: A show cause notice was issued to the assessee on 28.11.2019 for compliance by 02.12.2019 vide which it was specifically conveyed that in absence of reply the case will be assessed on the basis of material facts available on record. The show cause is reproduced as under: As per Schedule 'B' of Balance sheet, you have shown unsecured loans amounting to Rs. 1,81,55,000/- raised from certain individuals/ entities. Please furnish the details as per format given below: 3.4 The reply to point No. ii) of show cause notice regarding 'unsecured loans' amounting to Rs. 1,81,55,000/-is not acceptable as the assessee could not established creditw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o scope for an in between finding in an adhoc manner. Furthermore, no comments have been made by the A.O. on the documents submitted by the Assessee to establish the genuineness of the loans and creditworthiness of the lenders. There is no material whatsoever on record to establish that the loan transactions were not genuine; in fact, no attempt has also been made by the A.O. to that end. As observed from the assessment order, there is no enquiry made by the A.O. from any of the lenders from whom the Assessee had received unsecured loans. 16. The ld. CIT(A) has rightly relied on the following decisions: i) PCIT vs. Hi-Tech Residency (P.) Ltd. , (2018) (Delhi HC) 157 Taxmann 390 (SLP of Revenue dismissed in Supreme Court); ii) CIT v. Orissa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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