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TMI Blog2014 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,69,700/on account of unaccounted cash credit u/s 68 of the Act? (2) Whether on facts and circumstances of the matter and law on the subject, the Tribunal is right in law in going about the directions of predecessor in first round of appeal? (3) Whether on facts and circumstances of the matter and law on the subject, the Tribunal is right in law in not considering its own order on the ground that date is not apparent and Tribunal order copy is not certified copy?" 2. The short issue pertains to addition of Rs.13,69,700/under section 68 of the Income Tax Act 1961 made by the Assessing Officer. Briefly stated facts are that the Assessing Officer finding certain cash credit unexplained by the assessed, made certain additions. CIT(App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuineness of the loan received by the appellant by furnishing various documents as additional evidences; hence, the addition made on this account is hereby deleted and this ground of appeal is allowed." 3. The Revenue thereupon approached the tribunal. The tribunal reversed the decision of the CIT(Appeals) in the impugned judgement making the following observations : "2.4 From the above para of the order of Ld.CIT(A), we find that Ld. CIT(A) has mentioned the evidences produced by the assessee in the first round of appeal being copy of 7/12 extract, loan confirmation, copy of DD purchase by the creditor, copy of voter ID card and addresses to prove the genuineness of the loan. In para 3 of his order, Ld CIT(A) stated that additional ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of such loan credited and since it is reported by the AO in the remand report that the loan creditors have not produced total agricultural income earned by them, Ld. CIT(A) was not justified in saying that nothing extra has been brought on record by the AO in the remand report and we do not understand the basis of his decision that the creditworthiness of the loan creditors was established when the details of agricultural income is not furnished in respect of loan creditors. Before us also, no such detail is furnished by the Ld. AR establishing the creditworthiness of loan creditors, which is one of the essential ingredient for compliance of the requirement of section 68 and in the absence of any material on record regarding creditworthi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for afresh decision and no ratio has been laid down in that tribunal order that if repayment has been made subsequently addition cannot be made u/s 68. Moreover, even if the repayment is made subsequently, it cannot satisfy the requirement of three ingredients of Section 68 as per which, the assessee is duty bound to establish the identity and creditworthiness of loan creditors and genuineness of loan transaction and these ingredients are not satisfied by subsequent repayment. Hence, we do not find any merit in this contention also and the same is rejected. We also find that in that case, the objection was only this that the assessee has not proved the genuineness of loan transaction and this was not the objection in that case that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no further elaboration was made about their creditworthiness. The tribunal held and observed and correctly so in our opinion that the CIT(Appeals) decided the issue in favour of the assessee without pointing out as to which additional evidence admitted by the tribunal and considered by him had clinched the issue in favour of the assessee. Equally and importantly, the CIT(Appeals) observed that from the remand report, it is quite obvious that Assessing Officer failed to verify the identity, creditworthiness and genuineness of loan despite being given opportunity to do so. Thus the CIT(Appeals) in essence shifted the burden of establishing such facts on the Revenue rather than on the assessee. His later observations therefore, that in his o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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