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TMI Blog2014 (8) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding in the name of M/s. Nasreen Old Iron Traders, Khammam, under S.68 of the Act made by the Assessing Officer, disbelieving the genuineness of the transactions claimed by the assessee. 3. Facts of the case in brief are that the assessee, an individual engaged in trading of scrap in the name an style of 'Gayatri Steels', filed his return of income for assessment year 2005-06, admitting total income of Rs. 14,27,060. Assessment was completed on a total income of Rs. 56,03,060, vide order dated 28.12.2007 passed under S.143(3) of the Act. While doing so, the Assessing Officer made an addition of Rs. 41,76,000, being credit balance outstanding in the name of M/s. Nasreen Old Iron Traders, Khammam. In this regard, a sworn statement was rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance in the name of M/s. Nasreen Old Iron Traders, as also the version with regard to payment made subsequently by M/s. Sunil Castings Pvt. Ltd., a sister concern, of the assessee, opined that payment of Rs. 4,50,000 claimed by the assessee is not direct to Singareni Collieries. The Assessing Officer accordingly, made the addition of Rs. 41,76,000 treating it as unexplained cash credit under S.68 of the Act. 4. On appeal before the CIT(A), it was submitted that the Assessing Officer did not appreciate the confirmations submitted by Shri Jani Miya, Prop. of M/s. Nasreen Old Iron traders, Khammam and also eight other persons, who have advanced the money to Mr.Jani Miya and the alter payments and ignoring all the relevant facts and evidence s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of Rs. 4,50,000 by cheque to Singareni Colleries on behalf of M/s. Nasreen Old Iron traders on 31.7.2006 and Rs. 2,255 has been paid by cash and the balance through a sister concern namely, M/s. Sunil Castings Ltd. The said sister concern, M/s. Sunil Castings, has purchased a draft in favour of Singareni Colleries towards payment due by M/s. Nasreen Old Iron Traders. Assessee's counsel further submitted that the person who advanced money, i.e. M/s. Nasreen Old Iron Traders is a big contractor, with huge turnover, for supply of material and therefore the credit-worthiness of Ms. Naseen Old Iron Traders is not to be doubted. It was pointed out that M/s. Nasreen Old Iron Traders entered into a transaction of supply of material of more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue was explained by the Authorised Representative that this amount was paid to Singareni Colleries Ltd. through cheque on the same day through the same bank on behalf of M/s. Nasreen Old Iron Traders. Hence, the Authorised Representative contended that the evidence filed was not considered by the Assessing Officer in the remand proceedings, who simply relied on the assessment order framed by him. 8. We have considered the rival submissions and perused the material available on record. The only issue is with regard to the addition of Rs. 41,76,000 made under S.68 of the Act. The claim of the assessee is that the same is received from Shri Jani Miya Proprietor of M/s. Nasreen Old Iron Traders Khammam, and the amount was received though d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 10. With regard to other discrepancy of non-appearance of Rs. 4,50,000 claimed to have been paid by cheque trough IOB, it was demonstrated by the learned counsel before the CIT(A) that the said payment has been made to M/s. Singareni Collieries on behalf of M/s. Nasreen Old Iron Traders. Further, the person who has advanced the money, namely, Shri Jani Miya, is a man of substance, as he has bid for a tender of Rs. 8 crores, and is having a OD limit of Rs. 20 lakhs. Hence, his creditworthiness is beyond doubt. In any event, as far as the assessee is concerned, the source for the credit in question has been established, by discharging the onus of proving the identity of the creditor, his credit worthiness and also the genuineness of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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