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2017 (10) TMI 999 - AT - Income TaxAddition of unexplained cash credits - assessee-society has been granted registration under section 12A and 80G - Held that:- The assessee--society, in the present case, has been able to prove the identity of the investors, creditworthiness and genuineness of the transaction in the matter. A.Y. 2007-2008 - CIT(A) on examination of the evidence and material on record, found that all the lender companies are registered with ROC and regularly assessed to income tax and filed their PAN and copy of the acknowledgment of filing their return. Therefore, the identity of the lender companies have been proved. The Ld. CIT(A) also examined their balance sheet and other material on record to show that all the lender companies have regular source of income and they have sufficient funds with them to give loans to assessee-society. Their source are coming from earlier years and all the loans and advances have been given through banking channel. Therefore, all the lenders have sufficient capacity to give loans and advances to the assessee-society. The Ld. CIT(A) found that the loans and advances have been repaid in same year or in the next year through banking channel which would support the findings of the Ld. CIT(A) that the lender companies were genuine companies and have given loans/advances to assessee-society. The findings of fact recorded by the Ld. CIT(A) have not been rebutted by the Revenue department through any evidence or material on record. Since the statements relied on by Assessing Officer were not subjected to cross-examination on behalf of the assessee-society and both of them did not appear before A.O. at the assessment stage as well as at remand proceedings, therefore, even if assessee-society do not appear before Assessing Officer in the remand proceedings, the fact remains that their statements could not be subjected to crossexamination on behalf of the assessee-society. Therefore, their statements cannot be read in evidence against the assessee-society. Considering the totality of the facts and circumstances of the case in the light of finding of fact recorded in A.Y. 2008-2009 above, we are of the view that the Ld. CIT(A), on both appreciation of facts and material on record, correctly deleted the addition - Decided in favour of assessee.
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