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2022 (8) TMI 735 - ITAT AHMEDABADAddition u/s 68 - unexplained cash credit - HELD THAT:- The assessee has filed the details related to repayment of loans to the said parties which shows that the assessee has taken these loans from the parties and subsequently repaid the said loans. The Credit worthiness of M/s Sudarshan Enterprise was stated to be not doubted by the AO as per the observations of the CIT(A) but the findings of the AO clearly shows that the creditworthiness of the parties was in doubt. In respect of M/s Jupiter Business Limited also the creditworthiness was in doubt. The parameter of creditworthiness is determined from various documents including the return of income along with Profit & Loss account of those parties taken by the assessee has to see whether those parties are having sufficient amount to lent the same to the other parties. From the perusal of records and the bank statement, it is seen that the assessee is showing only the bank statement related to the transfer of amount from these parties to the assessee and not that of the actual balance of M/s. Jupiter Business Limited and M/s. Sudarshan Enterprise - The first parameters of creditworthiness was never established by the assessee during the remand back proceedings before the AO and the CIT(A) has not properly appreciated the evidences and without verifying the creditworthiness granted relief to the assessee which is not just and proper. Hence, ground no.1 of the Revenue’s appeal is allowed. Disallowance related to expenditure - AO disallowed the expenditure that business of the assessee was not commenced - CIT(A) deleted this addition - HELD THAT:- The assessee has demonstrated before the Assessing Officer as well as before the CIT(A) that the purchase of land is actually shown in the trading account and was never capitalised during the year and the same is evident from the Profit & Loss account furnished before the AO during the assessment proceedings. In fact, from the perusal of the cases as well as from the observations of the Tribunal, it is seen that the assessee has actually commenced in F.Y. 2007-08 relevant to A..Y under appeal and, therefore, the CIT(A) has rightly deleted this addition. Ground no.2 is dismissed
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