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TMI Blog2015 (5) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Appellate Tribunal pertaining to the assessment year 2006-07 by which the learned Tribunal reversed an order passed by the CIT (Appeals) concurring with the views of the assessing officer in so far as the addition under section 68 of the Income Tax Act was made. The revenue has come up in appeal. The following questions have been suggested. " (I) Whether the Income Tax Appellate Tribunal was correct in law in deleting the addition of Rs. 41,15,000/-, which was made by the Assessing Officer under Section 68 of the Income Tax Act, 1961, and which was upheld by the Commissioner of Income Tax (Appeals) by ignoring the facts recorded by the Assessing Officer as also the Commissioner of Income Tax (Appeals) and whether in such view of the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has set aside the order of the CIT (Appeals) for the following reasons:- " We have considered the rival submissions. A perusal of the paper book as filed by the assessee shows that the assessee has provided Permanent Account Numbers and the confirmation of the loans by all the loan creditors. Further a perusal of the paper book clearly shows that all the creditors are assessed to income tax and they have filed their returns on income for the assessment year 2006-07 in March, 2007. The assessment in the case of the assessee has been initiated only after March, 2007, so obviously it cannot be assumed that the returns had been filed by the creditors after the initiation of the assessment proceedings in the case of the assessee. Further a per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d:- " It is for the assessee to prove the identity of the creditors, their creditworthiness and the genuineness of the transactions. In our view, on the facts of this case, the Tribunal did not take into account all these ingredients which have to be satisfied by the assessee. Mere furnishing of the particulars is not enough. The enquiry of the Income-tax Officer revealed that either the assessee was not traceable or there was no such file and, accordingly, the first ingredient as to the identity of the creditors had not been established. If the identity of the creditors had not been established, consequently the question of establishment of the genuineness of the transactions or the creditworthiness of the creditors did not and could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence in support of the loans he had obtained which the assessing officer refused to give. It is in that case that the Tribunal and the High Court had held in favour of the assessee and the Supreme Court refused to interfere. The views expressed by the Supreme Court in paragraph 13 are as follows;- " 13. In this case the assessee had given the names and addresses of the alleged creditors. It was in the knowledge of the Revenue that the said creditors were income tax assessees. Their index number was in the file of the Revenue. The Revenue, apart from issuing notices under Section 131 at the instance of the assessee, did not pursue the matter further. The Revenue did not examine the source of income of the said alleged creditors t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o produce any books of account or other documents or evidence pertinent to the explanation if one was furnished, and examine the evidence and the explanation. If the explanation showed that the receipt was not of an income nature, the department could not act unreasonably and reject that explanation to hold that it was income. If, however, the evidence was unconvincing then such rejection could be made. The department cannot by merely rejecting unreasonably a good explanation, convert good proof into no proof. " For the aforesaid reasons, we are of the opinion that the view taken by the learned Tribunal is not sustainable. The first question is answered in the negative and in favour of the revenue. The second question need not be answered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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