TMI Blog2013 (7) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of Rs 80 lakhs PAN of the loan creditor is AAAHY3767N and the same is evident from the face of acknowledgement of the return of his income. AO merely suspect the loan transaction and otherwise, AO has no evidence against the assessee to conclude that the loan is not genuine as the said amount of Rs 80 Lakhs appears in the books of accounts of the assessee as well as the Sumati Corporation. It is also an undisputed fact that the impugned cash credit has been repaid by the assessee later in time. Further, it is a settled issue that the assessee is prevented from examining the issue of source of the source of Rs 80 lakhs in the assessee's case. The decision of the CIT (A) on this issue does not call for any interference. Claims of pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant facts of the case are that the assessee is an individual, carrying on business in the name style of Proprietary concern M/s. Pramanik Metal Corp. It is a proprietorship concern and it is engaged in running the business of wholesalers and extractors in Ferrous Non-ferrous Metal. Assessee filed return of income declaring the total income of Rs. 4,34,790/-. Assessment was completed u/s 143(3) of the Act quantifying the assessed income at Rs. 1,77,04,040/-. In the assessment, AO made addition of two cash credits amounting to Rs. 1.7 Crs, involving two parties ie M/s. Shreeji Corporation (Rs. 90 lacs) and M/s. Sumati Enterprises (Rs. 80,00,000/-). The relatable interest of Rs. 2,69,250/- accrued on the said cash credits was also disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terprises in Rajasthan, the PAN was issued in Mumbai jurisdiction. The same is proper and there is nothing unusual about the same. Therefore, there is no discrepancy. On other aspects regarding identity, creditworthiness and genuineness of transactions assessee gave written submissions which are narrated in para 4.4 of the impugned order. After examining the same, CIT (A) granted relief in respect of both the cash credits involving M/s. Shreeji Corporation and M/s. Sumati Enterprises. Consequently, interest portion disallowed by the AO was also restored. Para 4.5 to 4.7 of the impugned order are relevant in this regard. Aggrieved with the same, Revenue filed the present appeal before the Tribunal with the above mentioned grounds. 5. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ji Corporation: Before the CIT(A), the assessee explained that the PAN of M/s Shreeji Corporation is AAFHA6145K as evident from the acknowledgment of the return of income. PAN: ABMPC1644D is the PAN of the karta of the Shri Anil Rikabhchand Choradia, HUF. Therefore, the doubt regarding identity of the creditor in the mind of the AO is clearly misplaced. The same has been sorted out as evident from the contents of para 4.5 of the impugned order. "4.5. I have carefully considered the issue. It is very apparent from the assessment order and the submissions made by the Ld. AR of the appellant along with documentary evidence filed by him that the only reason which led the Ld. AO to make the addition is that the PAN of the two lenders did not m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the assessee is prevented from examining the issue of source of the source of Rs 90 lakhs in the assessee's case. Considering the above stated facts as well as the speaking order of the CIT (A), in our opinion, the decision of the CIT (A) on this issue does not call for any interference. Accordingly, relevant grounds of the revenue's appeal are dismissed. 9. Regarding the cash credit of Rs 80 lakhs: Similarly, the discrepancy with reference to the PAN and the jurisdiction of M/s. Sumati Enterprises, the CIT (A) has discussed the same in para 4.6 and 4.7 of the impugned order and the same are reproduced here under:- "4.6. Exactly similar situation obtains in the case of the other creditor namely M/s. Sumati Enterprises. The loan c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan transaction and otherwise, AO has no evidence against the assessee to conclude that the loan is not genuine. Further, we have also considered the fact that the said amount of Rs 80 appears in the books of accounts of the assessee as well as the Sumati Corporation. It is also an undisputed fact that the impugned cash credit has been repaid by the assessee later in time. Further, it is a settled issue that the assessee is prevented from examining the issue of source of the source of Rs 80 lakhs in the assessee's case. Considering the above stated facts as well as the speaking order of the CIT (A), in our opinion, the decision of the CIT (A) on this issue does not call for any interference. Accordingly, relevant grounds of the revenue's a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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