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TMI Blog2025 (1) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... channel.
The provisions of Sec.68 would still be attracted to the assessee in both the cases. In fact, the assessee is debarred from accepting loans in cash beyond specified limits as laid down u/s 269SS.
Therefore, these arguments stand rejected. Considering the fact that the assessee has failed to discharge the onus of establishing the creditworthiness of the 12 parties, we provide another opportunity to the assessee to substantiate the same before Ld. AO. Accordingly, the issue of impugned addition stand restored back to the file of Ld. AO for fresh consideration with a direction to the assessee to substantiate the loan creditors. Appeal stand allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... ng channels, that it had nothing to do with the returns of income as such and hence the addition sustained is untenable in law. 6. The CIT(A) further failed to appreciate that in the absence of action in terms of section 269SS, the genuineness of transaction was proved per se and hence the CIT(A) ought to have deleted the addition. As is evident, the sole issue that arises for our consideration is confirmation of addition of Rs. 36.50 Lacs u/s 68. 2. The Ld. AR advanced arguments and drew attention to the documents furnished by the assessee before lower authorities to substantiate the creditors. The Ld. Sr. DR also advanced arguments and supported the addition as sustained in the impugned order. Having heard rival submissions and upon p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tabulation in the impugned order, it could be seen that in most of these 12 cases, the assessee has not filed copy of ITR. In few cases, ITRs have been filed but the income is not commensurate with the loans granted by the lenders to the assessee. Therefore, the creditworthiness of these creditors could not be established by the assessee. The Ld. AR has stated that source of source could not be enquired into by Ld. AO. Further, the provisions of Sec.68 could be invoked only if there was cash credit in the books of accounts whereas in the present case, the transactions have happened through banking channels. However, both these arguments are to be rejected. In our considered opinion, the onus was on assessee to establish the creditworthin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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