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2018 (11) TMI 1893 - AT - Income TaxAddition u/s.68 and on account of commission - Bogus accommodation entries - HELD THAT:- In the case of Dy. CIT vs Rohini Builders [2001 (3) TMI 9 - GUJARAT HIGH COURT] held that where loans were received by the assessee by account payee cheques and the repayment of loans have also been made by account payee cheques along with interest in relation to those loans and that the assessing officer having allowed the interest claimed/paid by the assessee in relation to the cash credits cannot treat the cash credits as not genuine. The assessee had discharged the initial onus which lay on it in terms of Section 68 by proving the identity of the creditors by giving their complete addresses, PAN nos. and copies of assessment orders wherever readily available and that has also proved the capacity of the creditors by showing that the amounts were received by the assessee by account payee cheques drawn from the bank accounts of the creditors. It held that the assessee is not expected to prove the genuineness of the cash deposited in the bank accounts of those creditors because under law the assessee can be asked to prove the source of the credits in its books of accounts but not the source of the source. After considering the various judicial pronouncements with reference to the factual matrix of the case the CIT(A) concluded that assessee has discharged the primary onus with respect to the identity, genuineness and creditworthiness of the loan creditors. As brought to our notice that the loan so taken by the assessee has been repaid in the next assessment year 2010-11 by the account payee cheque. The confirmations filed by all the loan creditors are also placed on record acknowledging the repayment of loans. AO had passed scrutiny assessment order in assessee’s case for the A.Y.2010-11 dated 25/03/2013, wherein there is no adverse observation with regard to the repayment of loan already taken by the assessee to the respective loan creditors. CIT(A) has recorded categorical findings to the effect that the assessee has discharged the burden cast on him with regard to the identity of the loan creditors, genuineness of the transaction and creditworthiness of loan creditors. The detailed finding so recorded by CIT(A) are as per material on record which has not been controverted by learned DR by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the findings so recorded by CIT(A). - Decided against revenue.
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