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2012 (7) TMI 116 - HC - Income TaxInclusion of any sum u/s 68 in the hands of the assessee - assessee had received loans from various partners - the trial balance so submitted by assessee showed credits of unsecured loans from different parties aggregating to Rs. 4,54,07,931 and debits of Rs. 1,09,46,081 - Tribunal directed the AO to take note of only those credits where the lenders have confirmed for having lent monies to the assessee - Held that:- As it is reveled from the material on record that the assessee has maintained two books of account, but for the search, the kachcha books would not have come to light. The entries in the kachcha books are not reflected in the regular books of account maintained by the assessee and merely because the kachcha books are found during investigation and that the assessee owns the said books and also contends that the entries found therein are true and correct, it is not safe for the authorities to act on such entries - If the assessee wants to have the benefit of the entries in the said books, as he did not produce voluntarily it is for him to substantiate it by such acceptable evidence as to the correctness of those entries - As no explanation is forthcoming for not examining those creditors who in the normal course would have come forward and conformed those entries the Tribunal was justified in excluding those credit entries which are confirmed by the creditors and those entries which are not supported by creditors directing the AO to accept the cash credits wherever the lenders have confirmed for having lent the monies to the assessee and not in other cases - against assessee. Treatment of the unsecured loans - Tribunal considered it as genuine and bona fide - Held that:- Merely because the transactions are through bank channels, the assessee would not be entitled to the benefit - without conducting an enquiry with regard to the identify of the payer i.e. creditors, creditworthiness of the said payer and the genuineness of the transaction it cannot be considered bonafide - in favour of the revenue
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