TMI Blog2015 (7) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, creditor having appeared before the Assessing Officer in response to the summons issued u/s.131 of the Act before the Assessing Officer and confirmed by filing of confirmation letter, the transaction cannot be doubted. The assessee discharged onus placed upon them by establishing the identity of the creditor, his credit worthiness, genuineness of the transaction. Being so, in our opinion the addition made in this case u/s.68 is unwarranted. The same is deleted. - Decided in favour of assessee. - ITA No. 2314/Mds/2013, ITA No. 2315/Mds/2013 - - - Dated:- 19-6-2015 - Chandra Poojari, AM And V. Durga Rao, JM,JJ. For the Appellant : Shri S P Chidambaram, Adv For the Respondent : Shri N Madhavan, IRS, JCIT ORDER Per: Chandra Poojari, Accountant Member These two appeals by different assessees are directed against different orders of Commissioner of Income Tax (Appeals), Tiruchirapali, for the above assessment years. Since issue in these appeals are common in nature, these appeals are clubbed together, heard together, and disposed of by this common order for the sake of convenience. 2. The facts of the case with regard to Shri. Subbiah Ramanathan are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or immovable property. Further the Assessing Officer held that only a transaction through account payee cheque for such huge sum cannot be considered as genuine. In the above circumstances, the amount of ₹ 43,90,000/- said to be obtained from Shri. R. Balasubramanian was treated by the Assessing Officer as unexplained cash credit of the assessee u/s. 68 of the Act and was added to the income returned. 2.1 The facts of the case in respect of R.M.Janaki is that she was deriving salary income from firm and income from tailoring filed her return of income on 21.12.2009, for the year under consideration, admitting income at ₹ 1,85,000/- alongwith agricultural income of ₹ 1,52,000/-. The case was selected for scrutiny through CASS to examine the source for investment in property as per the AIR information, the assessee has purchased immovable property jointly at a cost of ₹ 50,00,000/- on 02.07.2008, registered with Sub-Registrar, Anna Nagar, Chennai. Appropriate notices were issued and the assessment was completed on 21.12.2011. In the return of income filed, the assessee declared salary income from partnership firm, income from tailoring and agricultural inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this effect these assessees filed a confirmation letter from him. Further, he submitted that Shri. R. Balasubramanian had availed loan from Mahalakshmi Estates, Chennai who has confirmed the loan by way of letter which was filed before the lower authorities and also placed on record in paper book and he drew our attention to the said letter. According to the ld. Authorised Representative for assessees, the assessees have received the above loans by way of banking channel. Further, he submitted that the said amount has been repaid by crossed demand draft for which he had filed xerox copy of demand draft which was placed on record. Thus, he submitted that the assessee has proved the source of credit and also proved source of source of credit i.e. Shri. Balasubramanian had advanced the amount out of loan proceeds received from Mahalakshmi Estates, Real Estate Consultants and Flat Promoters, No.1, Srinivasapillai Street, West Mamalam, Chennai who was assessed to tax and its PAN No. AAIFM 2345L. According to the ld. Authorised Representative for assessees, identity of party is proved and the transaction is genuine as it is through banking channel and the creditworthiness is also pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory of demand draft taken by some other third party was reasoned as given by shri R.Balasubramanian. Over and above, in the return of income filed for the assessment year 2009-10 on 04.03.2010 the assessee has not disclosed these transactions of purchase of property and the borrowal of loan of ₹ 43,90,000/-. Since the source of money for lending has not been proved along with the identity of the creditor and creditworthiness as well as genuineness of the transaction has not been proved by the assessee to the satisfaction of the Assessing Officer, the addition made by the Assessing Officer was thus justified. The alleged lender was only a salary employee not assessed to income tax. The Commissioner of Income Tax (Appeals) in agreement with the reasoning taken by the Assessing Officer that a demand draft can be taken from any bank by any person in anybody's name. Thus there was no truth in the contention of the Authorised Representative for assessee that Shri R.Balasubramanian has taken a demand draft and lend the money to the assessee was only a coloured transaction to show it as genuine transaction when the lender was a man of no means and also without charging any intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue can be determined after evaluation of the surrounding circumstances. There cannot be one general or universal proposition of law which could be the guiding hardstick in the matter. In the present case, the assessees filed confirmation letter from Shri. R. Balasubramanian who had advanced the impugned money to these assessees. It was also stated by him in his sworn statement recorded by the Assessing Officer that he has advanced money to these assessees which was borrowed from M/s. Mahalakshmi Estates, Real Estate Consultants and Flat Promoters, No.1, Srinivasapillai Street, West Mamalam, Chennai through Demand Draft and the same was passed on to these assessees as loan. Further, M/s. Mahalakshmi Estates also confirmed that they have advanced money to Shri. R. Balasubramanian whose PAN No. has also been given. Inspite of this, lower authorities were not ready to accept the transaction as genuine. There was a doubt in the mind of the Assessing Officer regarding genuineness of the transaction. In the present case there is positive evidence like (1) Existence of Creditors. (2) Their PAN Nos. (3) The confirmation letter from them. The creditors given loans to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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