TMI Blog2014 (5) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... s u/s 131 of the Act to M/s Arhan Commercial Corporation, M/s Kiran Enterprises and M/s Unnati Enterprises, the parties presented themselves for personal verification before the AO - Their income-tax returns, PANs, confirmations and bank statements, etc., were duly furnished. The AO had taken the amounts as unexplained only because their confirmations, ITRs and bank statements had been posted from the nearest Speed Post centre, the confirmations were in the same hand and they contained similar/same recitals, which was not possible - the factum of the assessee having duly identified the lenders and that of the assessee having proved the loans to be genuine, by filing the primary details before the AO, was nowhere rebutted by the AO - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re dated 09.01.2009 and order sheet entry dated 20.10.2009, the assessee was asked to establish identity of the creditors, genuineness of transactions and creditworthiness of the creditors in respect of new unsecured loans/deposits accepted during the year including the squared up accounts as per the provisions of section 68 of the Act. 3. In response, the assessee, vide its submissions dated 29.06.2009 and 08.07.2009, submitted the confirmed copy of accounts of all creditors except M/s Unnati Enterprises. The copy of return of income for the Assessment Year 2007-08 and the copy of bank statements from which amount/loan has been taken by the assessee, explaining the source of credit entries therein was filed for all the parties except fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and filing the confirmations is deeply condoned. In case your goodself require us to file the affidavits from the said parties, which can be filed in due course but will take nearly one week. So we are filing copy of confirmation along with copy of their ITR's and Bank statements of:- Pankaj Jain Prop of M/s Unnati Enterprises Meghraj Surana Prop of M/s Kiran Enterprises Jhumar Devi Prop of M/s Arham Commercial Corp. This is to further bring to your kind notice that all the above said parties gave us the loan from their running businesses as well as loans of M/s Unnati Enterprises and M/s Arham Commercial Corp. was returned back within a very short span of time, during the same Assessment Year. As well as loan of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich amount/loan has been taken by the assessee, explaining the source of credit entries there, was filed in respect of remaining creditors except Deepak Gupta; Sunil Kr. Jain HUF and Reena Jain, from whom it had taken loans of Rs. 10,00,000/-; Rs. 2,25,000/- and Rs. 1,50,000/- respectively. 8. It was in this manner, that the AO made the addition of Rs.32,25,000/-. 9. By virtue of the impugned order, the ld. CIT (A) deleted the additions made by the AO, bringing the department in appeal before us. 10. Challenging the impugned order, the ld. DR has contended that while wrongly deleting the additions correctly made by the AO, the ld. CIT (A) failed to take into consideration the fact that the assessee had failed to establish the credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tements before the AO. This evidence was not disproved by the AO. From these documents, it was found that the creditors were duly identified. Also, their confirmations were available before the AO. Bank statements of the lenders were produced before and examined by the Ld. CIT (A). These were not filed before the AO during the assessment proceedings, since this being third party information, was not directly available to the assessee at that time. The AO, on his part, despite the confirmations being available with him, did not investigate the matter any further. Moreover, the loans of Rs.6 lac concerning M/s Arhan Commercial Corporation, Rs.3 lac concerning M/s Unnati Enterprises and Rs. 10 lac concerning Deepak Gupta, stood repaid during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO, was nowhere rebutted by the AO. The contents of the confirmations issued by the creditors and their bank statements also remained unquestioned by the AO. Too, the factum of the assessee having deducted TDS on the interest of the loans and having repaid the loans, as noted hereinabove, also remains undisputed. 13. Therefore, the addition made by the AO was made only on the basis of suspicion and nothing else. This, in law, is entirely untenable. As such, in our considered opinion, the ld. CIT (A) has correctly deleted the additions. Accordingly, the order passed by the ld. CIT (A) is hereby confirmed and the ground raised by the department is rejected. 14. In the result, the appeal filed by the department is dismissed. The orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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