9911796707
TMI Blog2003 (7) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... not produce supporting evidence. In the course of further proceedings, the assessee-filed affidavits of some persons in support of unsecured loans on 25th March, 1996. The AO did not accept affidavits or letters of confirmation allegedly filed on behalf of the creditors and treated the following' cash credits as assessee's income from undisclosed sources. This-way, he made addition of Rs. 95,000 to the income of the assessee: ----------------------------------------------- "S.No. Name of person Amount (Rs.) ----------------------------------------------- 1. Sh. Suba Singh 19,000 2. Sh. Subhash Jain 19,000 3. Sh. Laxman Singh 15,000 4. Sh. Manoj Kumar 15,000 5. Sh. Mangla Ram 12,000 6. Sh. Tirlok Kumar 15,000 ---------- Total: 95,000" ---- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o many opportunities. Assessee's intentional avoidance to produce all such persons further strengths my observations. Therefore, keeping in view the overall facts, the above cash credits are held to be in genuine as the assessee has failed to prove their genuineness and given any evidence to prove the capacity of the alleged persons. It is also, therefore, held that all the above amounts represent assessee's own income from undisclosed sources which he has introduced in his books of account in the garb of cash credits. Accordingly, total amount of all the above squared up cash credits is added towards the taxable income of the assessee." 3. The assessee impugned above addition in appeal before the CIT(A) who noted the date of receipt of lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he requirements to establish genuineness of cash credits were satisfied in this case and, therefore, the impugned order of CIT(A) should be upheld. 6. I have given careful thought to the rival submissions of the parties. The AO had asked the assessee to produce creditors for his examination. This was not doen. This failure was condoned on appeal on the ground that sufficient time was not allowed to the assessee to prove cash credits. The assessee had alternatively filed affidavits of creditors in support of cash credits. It is, therefore, necessary to refer to affidavits. For example, the affidavit of Sh. Subhash Jain S/o Kishan Kumar is as under: "AFFIDAVIT I. Subhash Jain S/o Kishan Kumar, aged, about 46 years. Resident of Booth No. 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68 of the IT Act, the assessee has also to establish credit worthiness of the creditor. The assessee has to show that creditor had the capacity to advance loan. In my view, credit worthiness of creditors in this case has not been established, and affidavits do not advance assessee's case. The alleged creditors are uneducated labourers. Some are earning income from brokerage. No detail of their total income is available to show that these persons had capacity to advance loan to the assessee. It is not the law that every affidavit is to be accepted on its face value. Affidavit's colour should match with other material on record and should fit in the facts and circumstances of the case. Only then affidavit has evidentiary value. Affidavits in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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