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TMI Blog2004 (8) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... reditors at the time of recording of the statements, therefore, in my considered opinion, the learned CIT(A) is fully justified in view of the facts and the circumstances of the case to delete all the additions. Since no fresh material or evidence has been adduced nor any infirmity or flaw in the order of the learned CIT(A) came to my notice, therefore, while concurring with the findings of the learned CIT(A), I uphold his order and dismiss the appeal of the Revenue. As a result, the appeal of the Revenue gets dismissed. - HON'BLE U.B.S. BEDI, J.M. For the Appellant : S.C. Pahwa, Adv. For the Respondent : Sudhir Sehgal and A.K. Juneja, Advs. ORDER 1. This appeal of the Revenue is directed against the order passed by the learned CIT(A), Bhatinda, dt. 8th May, 2001, relevant to the asst. yr. 1998-99 whereby deletion of addition of Rs. 2,79,218 on account of unexplained cash credits made by the AO under s. 68 has been challenged. 2. The AO made the addition of Rs. 2,79,218 being unexplained cash credits under s. 68 and interest thereon. In appeal, it was argued that the assessee is a private limited company and carrying on the business of finance. The assessee is accepting depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order as under: 2.2 I have given careful consideration to the views expressed by both the sides. It is a fact that the creditor, Shri Jangir Singh, was produced before the AO who in turn has given statement before the AO that he has advanced the loan to the assessee amounting to Rs. 97,000 on 14th Feb., 1998. It is also a fact that the creditor has sold the land through registered deed for a sum of Rs. 1,50,000 on 26th Aug., 1997. It is also a fact that the AO failed to adduce any evidence to prove that the creditor utilised the sale proceeds of agricultural land of Rs. 1,50,000 somewhere else. It is also a fact that the creditor has filed an affidavit that he is an agriculturist and owns 15 acres of agricultural land. It is further seen that the creditor has paid the amount through bank draft of Rs. 97,000 which is duly debited to the bank account on 14th Feb., 1998. Keeping in view all these factors, I hold that the creditor, Shri Jangir Singh, has discharged the burden of proving the identity, source of creditor and also the transaction made. Accordingly, the addition of Rs. 81,610 made by the AO is not justified and stands deleted. 4. Similarly, second addition of Rs. 88,590 (R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Balkar Singh confirmed that he deposited Rs. 40,000 through payee's account pay order on 26th March, 1997, and he received this amount out of HUF funds from sale proceeds of ancestral agricultural land sold by his father. The AO, on the other hand, failed to prove that the sum of Rs. 3,00,000 was utilised by the creditors for some other purposes. Accordingly, the identity of the creditor, source of deposit and genuineness of transactions have been proved beyond doubt. I, therefore, hold that the addition of Rs. 88,590 made by the AO is not justified and the same stands deleted. 6. Similarly, next addition of Rs. 53,410 has been made on account of unexplained cash credit in the name of Shri Rajinder Singh and the Authorised Representative of the assessee argued that Shri Rajinder Singh deposited Rs. 49,900 through pay order purchased from Punjab Sind Bank, Extension Counter, Muktsar, on 11th June, 1997. Affidavit of the creditor was furnished and the statement of the creditor was recorded during the course of assessment proceedings. It has been explained that Shri Rajinder Singh along with his brother, Sukhchain Singh and sister-in-law (brother's widow) own 430 Kanals of ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement was recorded by the AO. She explained that she received Rs. 30,000 as gift from her father, Shri Jagjit Singh, on 1st June, 1997. She further explained that she owns 2 acres of agricultural land. She purchased the pay order out of gift of Rs. 30,000 from her father and balance from savings of agricultural income. An affidavit of Shri Jagjit Singh, father of Smt. Amritpal Kaur, along with the copy of Jamabandi as evidence of land owned by Shri Jagjit Singh was also furnished. Shri Jagjit Singh appeared before the AO and his statement was recorded. He confirmed the gift of Rs. 30,000. The assessee, therefore, proved the identity, capacity and source of the creditor whereas, on the other hand, the AO observed that no evidence regarding withdrawal of Rs. 30,000 by the father of the creditor has been furnished. In the absence of evidence, Rs. 49,000 paid by pay order have been treated as unexplained under s. 68 of the IT Act, 1961. 9. The learned CIT(A) while considering and accepting the plea of the assessee has concluded to delete the addition as per para 5.2 of the order as under: 5.2 I have given careful consideration to the views expressed by both the sides and hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the case law of difference Courts, other Benches and even Amritsar Bench to support the order of the learned CIT(A). 12. After hearing both the sides and considering the material on record as well as documentary evidence, which were filed before the lower authorities and copies placed before this Bench to which my attention was drawn, I find that the CIT(A) has rightly appreciated the facts in the light of the material available on record. The assessee has not only filed confirmation letters, affidavits of the creditors and also produced all the creditors who have admitted to have given the loans to the assessee-company and also furnished necessary evidence to prove their capacity to advance such loans, and in view of fact and circumstances of the case it is immaterial whether some amount is kept at home and deposited the same before issuing cheques, etc. Since source of such deposits has been proved by the assessee and the AO has not objected to the assertion made by the creditors at the time of recording of the statements, therefore, in my considered opinion, the learned CIT(A) is fully justified in view of the facts and the circumstances of the case to delete all the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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