9911796707
TMI Blog2014 (1) TMI 922X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) erred in deleting the addition of Rs. 14,60,876/- made by the Assessing Officer on account of unexplained cash credit without appreciating the fact that the assessee has failed to prove the creditworthiness of Shri Chandrakant C. Shah, HUF from whom he has taken loan directly and through Shri Pramod Wagle. ii) The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the AO be restored." 3. Facts necessary for disposal of the appeal are stated in brief. The assessee is proprietor of M/s. Wagle's Alap Electronics. Assessee was engaged in the business of dealing in electrical and consumable items. For the year under consideration the assessee declared total income of Rs. 1,58,996/-. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shah, HUF to the extent of Rs. 9.25 lakhs, which was routed through the bank account of the assessee and again this amount was transferred to the books of the assessee by account payee cheque. Therefore, the entry in the capital account merely mentions that the amount was received by account payee cheque; therefore, there was no reason to treat it as unexplained cash credit. 6. With regard to the addition of Rs. 4,92,176/- the assessee contended that confirmation was already filed and hence there is no case for making an addition under section 68 of the Act. According to the assessee it was a loan taken during the financial year 2004-05. 7. The learned CIT(A), while dealing with both the additions, did not specify as to how the sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loan of Rs. 10 lakhs was in connection with the addition of Rs. 4,92,176/- and the loan of Rs. 9.25 lakhs was to explain the source of Rs. 9,68,700/-. Similarly, unless it is clear as to whether the assessee has taken loan or given loan to Shri Pramod Wagle it cannot be appreciated as to whether the initial onus lay upon the assessee stood discharged. 9. The learned CIT(A) was of the opinion that if the loans were taken through account payee cheques and if no adverse remarks were made by the AO the burden placed upon the assessee under section 68 of the Act stands discharged and in the absence of proving that there was income from undisclosed sources no addition can be made by the AO. In this regard he observed that the AO, in his rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by the learned CIT(A) with regard to the balance amount. Similarly, he also highlighted the confusion created with regard to the loan in the name of Shri Pramod Wagle. He thus submitted that the order passed by the learned CIT(A) deserves to be quashed and the issue may be set aside to the file of the AO for reconsideration. 11. None appeared on behalf of the assessee. We have carefully considered the submission of the learned D.R. and also perused the record. Having regard to the facts highlighted by the learned D.R. we are of the view that the learned CIT(A) set aside the addition without properly analysing the facts of the case. Therefore, in the interest of justice we set aside the order of the learned CIT(A) and direct the AO to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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