TMI Blog2015 (3) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... and 10 Acres of agricultural land is irrigated. He also produced the sample receipts of the sale of TUR only the name of mentioned as Basavlingeshwhar Math. He also produced the sample sale of bills of sale of sugarcane to the Sidhheswar S.S.K. Solapur. It is true that he has not assessed to tax but if a person having substantial agricultural income but he is not having the non-agricultural income or non-agricultural income is below the non-taxable limit inference can be drawn that he is not capable to giving any loan as claimed. Thus there is a creditworthiness in respect of amount of ₹ 5,00,000/- given to the assessee. - addition deleted. - Decided in favour of assessee. In respect of Shri Pandurang Babu Shinde it is true that he has not assessed to tax but he has appeared before the Assessing Officer and confirmed that he has given the hand loan to the assessee. He also explained that the source of the said hand loan is from the agricultural activities. He also produced 7/12 extract of the agricultural land to demonstrate that in fact he is owner of agriculture land. He also claimed that he is taking crops like sugarcane, maize, jowar, harbhara etc. He also stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed that he has given the loan to the assessee. As per the facts on record and statement of the said person identity and genuineness cannot be doubted. It is also stated by him that he takes the agricultural produce in the form of grapes. He also produced documentary evidence in the form of sales bills of the dry grapes. Giving our anxious consideration to statement of the said person as well as the documentary evidence, we hold that the assessee has established identity, genuineness and creditworthiness of the said person. -Decided in favour of assessee. In respect of Sou Taramati S. Jadhav. Admittedly, the said loan creditor did not appear before the Assessing Officer. Admittedly, the assessee had filed only 7/12 extract to demonstrate that she is owner of land. It is claimed that she has paid ₹ 3,00,000/- to the assessee. In our opinion in this case, the identity, genuineness and creditworthiness are not proved. We, accordingly, confirm the addition. Decided against assessee. - ITA No. 135/PN/2014 - - - Dated:- 25-2-2015 - Shri G.S. Pannu And Shri R.S. Padvekar JJ. For the Appellant : Shri Rajesh Damor For the Respondent : Shri Naresh Kumar ORDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2009 Agriculturist and mathadhipati 3 Sou Taramati Suryabhan Jadhav, A/P Kurdiwadi Rs.3,00,000 01.11.2006 Agriculturist 4 Shri Pandurang Baburao Shinde,A/P Sayyad Varawade Tal. Mohol Rs.3,00,000 01.11.2009 Agriculturist 5 Shri Guruppa Saibanna Irranavvar, A/p Solapur Rs.3,00,000 01.11.2009 Agriculturist 6 Shri Irranna Rachppa Konapure, A/p Nagansur Rs.3,00,000 05.11.2009 Agriculturist 7 Shri Ravindra Shamrao Tambolkar, Solapur Rs.3,00,000 01.11.2009 Retired from service. 3. The assessee filed the confirmation letters from the above loan creditors. The Assessing Officer asked the assessee to produce the above persons for verification along with necessary proof such as 7/12 extract of lands, proof of identification, extract of all bank acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. In sum and substance the Assessing Officer declined to accept the creditworthiness of the said person to give the loan of ₹ 3,00,000/0 to the assessee. (II). Shri Rewansidhheswar Swamiji: It is stated that he is residing at Viraktamath, Tal-Akkalkot, Distt.- Solapur. He is 65 years old and is not assessed to tax. He is a Mathadhipati, Swarhijee of Viraktamath and also stated that he is doing agricultural activities. He further stated that he is a owner of 45 Acre agricultural land and out of said land 10 Acre land is irrigated. It appears that he has not produced 7/12 extract before the Assessing Officer at time of recording the statement but assured he would produce the same afterwards. As noted by the Assessing Officer he produced 7/12 extract but it was seen that he has the owner of 5.03 Hector of land. He also stated that he is taking crops like, Jowar, sugar cane, Tur etc. He further stated that he use to sale agricultural yield in Akkalkot Market. He also produced sample receipt for sale of TUR. He also filed the receipt of sugarcane sale to Sidhheswar S.S.K. Solapur. He also stated that he has bank account in Solapur District Co-op. Bank and Bank of India, Nag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said loan creditor also filed the copy of his bank account maintained in Solapur DCC Bank, Nagansur. He also stated that he is also having 5 buffalos and two cows from which he sales the milk to villages. He confirmed that he has given ₹ 3,00,000/- to the assessee from time to time during the period May 2006 to November 2006 in cash. The Assessing Officer declined to accept his creditworthiness as well as the genuineness of transaction. In the opinion of the Assessing Officer mere identification is not sufficient. (V ). Shri Gurrappa Saibanna Iranar: As noted by the Assessing Officer the said loan creditor is residing at Vijapur Road, Solapur. He is 75 years old. He is not assessed to tax. There are 6 members in his family including him. i.e his wife, one sons, who is running grocery shop and daughter in law and two granddaughter. He stated that he is owner of 8 Acre agricultural land. The said person also produced 7/12 extract of all his agricultural lands. He stated that he has cultivated sunflower, tur and jowar in his land. He further stated before the Assessing Officer that he sales his agricultural produce at Basavat Bagewadi and Vijapur market through the ADDTYA ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-irrigated and the person had cultivated Tur, sunflower and jowar etc. the Assessing Officer raised the question mark on the genuineness of the claim of the assessee that he has taken an interest from advance or loans from the above 7 persons for the purpose of staring the civil construction business after his retirement. The Assessing Officer made the entire addition of ₹ 23,50,000/- which was cash deposited by the assessee in the Bombay Mercantile Co-op. Bank Ltd., Solapur Branch for failure of the assessee to satisfactorily explain sources. 4. The assessee challenged the addition before the Ld. CIT(A) but without success as addition was confirmed. Now, the assessee is in appeal before us. 5. We have heard the rival submissions of the parties and perused the record. The assessee has filed the Paper Book in which the copies of statement of the 6 loan creditors recorded by the Assessing Officer are placed. The assessee also filed the copies of 7/12 extract of the loan creditors to demonstrate that whatever the statement was given before the Assessing Officer was correct. The Ld. AR for the assessee vehemently argues that the present addition is made by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and it cannot be said that those persons do not have any income to lend the money to the assessee. He submits that in respect of 2 loan creditors they were employees and they also got retirement benefits. The inference drawn by both the authorities below in respect of 6 loan creditors is totally on the presumptions and surmises. He argues that one a source is explained by the assessee, the Assessing Officer cannot expect the assessee to explain the source of the source. He pleaded for deleting the additions made by the Assessing Officer in respect of (i) Shri Ravindra Shamrao Tambolkar, (ii) Shri Revansidheswar Swamiji, (iii) Shri Pandurang Babu Shinde, (iv) Shri Irrappa Rajappa Konapure, (v) Shri Gurrappa Saibanna Iranar and (vi) Shri Basavraj Ambadas More. In respect of 7 loan creditor i.e. Sou Taramti S. Jadhav, he submits that the said loan creditor also filed the confirmation as well as documentary proof of the land record in the form of 7/12 extract. He submits that even if the said loan creditor does not appear before the Assessing Officer but at the same time she filed the confirmation letter. He pleaded for accepting the said loan creditors a genuine one. 6. Per contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipal Corporation and has received the retirement benefits. He confirmed that he has given the personal loan to the assesse of ₹ 3,00,000/- and out of that he has received back ₹ 2,50,000/- during the period October/November, 2007. In the case of this person, he has not stated that he was having any agricultural income but at the same time as per the statement given by the said Shri Ravindra Shamrao Tambolkar on oath before the Assessing Officer, it is seen that he has sufficient funds with him to lend sum of ₹ 3,00,000/- to the assessee. There is no dispute that this person appeared before the Assessing Officer and deposed also so. Hence, the identity and genuineness cannot be doubted. Now, the only aspect to be looked into is the creditworthiness of the said person. In our opinion on the cursory look on the facts noted by the Assessing Officer creditworthiness of the said loan creditor cannot be disputed for giving the personal loan of ₹ 3,00,000/- to the assessee. We, accordingly, delete the addition in respect of Shri Ravindra Shamrao Tambolkar of ₹ 3,00,000/-. 9. In respect of Shri Revansidheswar Swamiji, he has also stated in the clear terms t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ralist and owner of 4.5 Acre agricultural land which was irrigated. He also cultivated and takes the sunflower and jowar and sales his agricultural produce. He has also stated that he has 5 buffalos and two cows from which he sales the milk to villages. He also confirmed that he has given ₹ 3,00,000/- to the assessee from time to time during the period May 2006 to November 2006 in cash. He also filed the confirmation letter. As per the facts noted by the Assessing Officer in our opinion the identity and genuineness cannot be doubted. So far as the creditworthiness is concerned he has explained the source of his income. In our opinion that his source is sufficient to lend some of ₹ 3,00,000/- to the assessee. We, accordingly, delete the addition. 12. In respect of Shri Gurrappa Saibanna Iranar is concerned, he is old person and he is not assessed to tax. As noted by the Assessing Officer as per his statement he is owner of 8 Acre agricultural land. He is also produced 7/12 extract of all his agricultural lands. The said person also explained where as he sales the agricultural produce. He also confirmed that he has given the loan to the assessee. It appears that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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