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2015 (4) TMI 1095 - AT - Income TaxAddition u/s 69 - unexplained source of the credits made in the four undisclosed bank accounts - contention of the assessee is that the accounts were held jointly with other relatives - CIT(A) deleted the addition - Held that:- There is no dispute with regard to the fact the account Nos.9427,61506, 61175 & 61095 with the Surat Peoples Co-operative Bank Ltd., Bhgatalao Branch, Surat, were not disclosed by the assessee to the Income Tax Department while filing the return. The explanation of the assessee in respect of these accounts was that the accounts were jointly held with other persons and the amount credited therein was out of the savings, loan and maturity of mutual funds. In our considered view, if any, credit entries found in the accounts of the assessee, it is incumbent upon him to explain the source of such credit. In the present case, the assessee has merely made a sweeping statement that these amounts were out of loans from friends and relatives, cash deposits, interest income and from maturity of mutual funds. The assessee also furnished certain confirmations from Jayshreeben Parmar, Chandan Parmar, Hansaben Parmar and Bhudarji Mithal. However, the assessee has not furnished the proof of creditworthiness of such creditors. Therefore, the ld.CIT(A) was not justified in deleting the addition being the loan received from friends and relatives without any supporting evidences of the creditworthiness of such creditors. Further, the ld.CIT(A) observed that there was an opening cash balance of ₹ 10 lacs which he presumed that amount might have been used for depositing in the bank account. Before us, the assessee could not point out as to whether the amount of ₹ 10 lacs shown as cash on hand related to the account declared by the assessee. These accounts are not the recorded accounts. The assessee was required to demonstrate with evidence as to how this cash was generated. Therefore, we cannot affirm the order of the ld.CIT(A), same is hereby set aside. The ld.CIT(A) ought to have passed a speaking order in respect of genuineness of the transactions and creditworthiness of depositors. It is also not clear whether the transactions in question had been reflected by other persons or not in their respective books of accounts. And also whether such transactions were reflected in their respective income-tax returns of the parties, if not what action has been taken in their hands. Under these facts, we restore this issue back to the file of ld.CIT(A) for decision afresh in the light of our observation made hereinbefore. - Decided in favour revenue for statistical purposes.
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