TMI Blog2013 (10) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... not maintain any books of account. Nowhere their capacity to raise such amount for drawing cheque of sizable amounts was established - Very genuineness of the transaction was not established. This therefore, is not a case where the Revenue makes addition on the assessee failing to establish source of the source. All issues are essentially based on facts and appreciation of evidence on record. No question of law arises – Decided against the Assessee. - TAX APPEAL NO. 16 of 2013 - - - Dated:- 13-3-2013 - AKIL KURESHI AND SONIA GOKANI , JJ. For the Appellant : Udayan P. Vyas. ORDER:- PER : Akil Kureshi Assessee is in appeal against the judgement of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 29.12.2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity and creditworthiness of the depositors was not proved. It was observed that there is no such type of cash deposits before or after the cash transactions in case of such depositors other than loan amounts, as appeared in their account. He concluded that the assessee did not prove the genuineness of the transaction as also the capacity and creditworthiness of the creditors. 4. The assessee carried the issue in appeal. The Commissioner(Appeals) re-examined the entire issue at length. He observed as under : "5. I have carefully considered both the positions. I have also examined the relevant documentary evidences furnished by the AR including account confirmations, copies of Income-tax returns of the depositors, their balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan. 6. Coming to M/s. Nirav Gems, who claimed to have given a loan of Rs.1,50,000/- the situation was exactly the same. Cash of Rs. 1,50,000/- was deposited on 8.11.2004 and the loan was given on the very next day. Before the deposit, the balance in its account with Dena Bank, Rampura Branch was only Rs. 4,008.87. He also build up his capital by showing diamond brokerage income of approximately Rs. 3,000 per month. Once again, this is another case of accommodation entry being provided to the assessee. Shri Nirav M Mehta who claimed to have given a loan of Rs. 1 lakh to the assessee, cash was deposited on 6.11.2004 in his bank account with Dena Bank and the loan was given to the assessee on 9.11.2004. His account shows similar tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered that a large number of bogus returns and bank accounts are opened for providing such entries, the practice of which in Surat is almost an industry, apart from the textile and diamond industries. On the face of it the transactions were made look absolutely genuine as the loans were taken by account-payee cheques, the depositors had filed their returns of income, had prepared their accounts, had their own bank accounts and four of them had even appeared before the Assessing Officer. Unfortunately, a deep scrutiny into the pile of documents furnished by the AR and the assessee, both in asst. proceedings and in appellate proceedings clearly reveal that the manipulations, the manner in which cash was deposited in the bank accounts of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o giving such loans. There were no other transactions between the said two parties either before or after giving of such loans. It was noticed that after giving the loan, very small amounts remained in the account of depositors. Depositors had not maintained any books of accounts. Though all creditors were maintaining their book accounts, nothing has come on record why the transactions were conducted in cash. Tribunal therefore, held that the evidence produced by the assessee should not be accepted in view of surrounding circumstances and natural probabilities. The Tribunal therefore, came to the conclusion that assessee could not establish the creditworthiness of the depositors and genuineness of the transactions. 6. Learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as the conclusion of the Tribunal. When one reads the order of the Assessing Officer, that of the Commissioner(Appeals) and also of the Tribunal, inescapable conclusion one arrives at is that the Revenue authorities as well as the Tribunal found the entire transaction not genuine. There was sufficient evidence on record to suggest that in case of all the depositors, their bank accounts contained meager balance shortly before sizable amount of Rs. 1 lakh and upward were given to the assessee through such account. In such bank accounts, cash amounts were credited and immediately entire amounts were withdrawn through issuance of such cheques in favour of the assessee. It was noticed that such creditors did not maintain any books of accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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