TMI Blog2006 (11) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... ben S. Shah and ( ii ) Dr. Asim V. Shah satisfactorily. 3. The Assessing Officer observed that Smt. Vimlaben S. Shah is an old lady of 80 years and having no independent source of income except small amount of interest does not have the capacity to give loan to the extent of Rs. 10,00,000, therefore, her creditworthiness is not proved at all. As regards Dr. Asim Shah, he observed that the assessee has not given any reply regarding alleged loan of Rs. 1,10,000 and therefore, the source of the aforesaid loans has not been established. He accordingly made addition of Rs. 11,10,000 (Rs. 10,00,000 + Rs. 1,10,000) to the income of the assessee. The CIT(A) deleted the addition by observing; in para 2.4, as under : "2.4 I have carefully consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding the sources of funds in the hands of Mr. Vinod Shah for advancement of the above gift and loans to Smt. Vimlaben S. Shah. The observations of the Assessing Officer that there was opening balance of only Rs. 3,127 in the bank account on 1-4-1999, is of not much relevance for the reasons that the manner in which funds accumulated in the bank account of Smt. Vimlaben S. Shah are duly explained in the relevant bank passport and it is seen that on 13-11-1999, when Smt. Vimlaben S. Shah advanced a loan of Rs. 10,00,000 to the appellant company through a cheque, there was sufficient balance in the bank account. In fact the Assessing Officer has himself narrated on p. 5 of the assessment order as to how the funds were accumulated in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an amount of Rs. 11,10,000 from Smt. Vimlaben S. Shah and Dr. Asim V. Shah was duly explained by the appellant inasmuch as the identity of the creditors were duly established, the sources of funds in their hands were also duly explained and that all the relevant transactions were through banking channels. I. thus, do not find any merit in the addition of Rs. 11,10,000 made by the Assessing Officer and the same deserves to be deleted particularly by following the decision of Hon ble Gujarat High Court in the case of Dy. CIT v. Rohini Builders ( supra ). The Assessing Officer is accordingly directed to withdraw the addition of Rs. 11,10,000 and grant appropriate relief to the appellant. This ground of appeal is accordingly treated as allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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