TMI Blog2014 (11) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue upon the creditors failure to present themselves in enquiry, from such simple fact of omission on part of the creditors, it would be remote and farfetched conclusion that the creditors lack identity. The revenue could not contradict the explanation furnished by the assessee - The omission on part of the creditors to subject themselves to enquiry being initiated by the revenue or non-furnishing of accounts by them would, not lead to the conclusion that the creditors lacked identity without any other contradiction of facts and particulars of the transactions between them furnished by the assessee being uncontroverted - Tribunal had discussed seven instances of loan threadbare and deleted the addition had held in substance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 2005-06 on the following questions: 1. Whether on the facts and in the circumstances of the case, the Learned ITAT erred on fact as well in law in deleting the addition of ₹ 96,34,237/- made as undisclosed income on account of loans pertaining to five alleged creditors and interest thereon, without appreciating that the addition was sustained by the learned Commissioner of Income Tax (A) for the detailed reasons given in her order highlighting that the creditworthiness of the creditors and genuineness of transactions were not proved at all and even in some cases the identity of the creditors remained unestablished and for that matter, the learned ITAT s order is perverse ? 2. Whether the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was unjustified. He relied on two judgements, one of the Hon ble Supreme Court in the case of CIT V. Daulat Ram Rawatmull (SC) : 87 ITR 349 and the other of the Allahabad High Court in CIT v. Jauharimal Goel : (2005) 147 Taxman 448 (Allahabad) in support of his submission. From the judgement in Daulat Ram Rawatmull (supra) we find the Hon ble Supreme Court had held that a person can still be held to be the owner of a sum of money even though the explanation furnished by him regarding the source of that money is found to be not correct and from the simple fact that the explanation regarding the source of money furnished by him, in whose name the money is lying in deposit, has been found to be false, it would be a remote an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as income of the assessee from undisclosed source. We do not find the revenue could contradict the explanation furnished by the assessee. The omission on part of the creditors to subject themselves to enquiry being initiated thereof by the revenue or non-furnishing of accounts by them would, as aforesaid, not lead to the conclusion that the creditors lacked identity without any other contradiction of facts and particulars of the transactions between them furnished by the assessee being uncontroverted. We find the learned Tribunal had discussed seven instances of loan threadbare and while deleting the addition had held in substance with regard to each of those loan transactions, that the revenue had failed to bring any other material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpiry of the accounting year, relevant to the assessment year under consideration, that is it has been paid in the month of April, 1995. There is no material on record to show that the amount had actually been paid by the assessee to the share broker the end of the current year. The subsequent payment made in April, 1995 has not been found to be bogus or non-genuine. It is, therefore, clear that there was an outstanding liability of ₹ 49,08,825 on account of amount payable against the purchase of shares. The CIT (A) as well as the AO have made the additions only on suspicion and surmises disbelieving the assessee s contention and presuming that no share broker would keep the amount outstanding for such a long time. The transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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