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2019 (6) TMI 775 - AT - Income TaxAddition u/s 68 treating part of the unsecured loans as unexplained - HELD THAT:- The assessee has fully explained the loan received by it by furnishing the confirmation, ITR and bank statement of creditors. CIT(A) confirmed the addition to the extent of immediate cash deposited in their bank account. However, while doing so he has not brought any evidence to prove that the cash amount deposited in the bank account of these persons belongs to assessee. Thus, in the absence of anything to establish that the cash amount deposited in the bank account of the creditors flew from the assessee, part of the cash credits cannot be treated as unexplained income of the assessee. Assessee has explained identity of loan creditor, genuineness of loan transaction as well as availability of funds in the creditor’s account. During the A.Y. 2010-11 and 2012-13 under consideration, the assessee is not required to prove source of the source. See ARAVALI TRADING CO. VERSUS INCOME-TAX OFFICER [2007 (1) TMI 567 - RAJASTHAN HIGH COURT] Accordingly, we do not find any merit in the addition so confirmed by the ld. CIT(A). Similarly, in the A.Y. 2012-13, CIT(A) confirmed the addition of ₹ 1.00 lac U/s 68 by holding that source of giving loan to this extent is by cash deposit. However, while doing so he has not brought any evidence to prove that the cash amount deposited in the bank account of these persons belongs to assessee. Thus, in the absence of anything to establish that the cash amount deposited in the bank account of the creditors flew from the assessee, part of the cash credits cannot be treated as unexplained income of the assessee more particularly when assessee has repaid the loan in subsequent years. - Decided in favour of assessee.
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