TMI Blog2008 (7) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... edit by placing on record before the AO sufficient material/evidence. Not only the identity of the creditor has been established by producing the record of the assessee in which those transactions have been duly accounted for, but the assessee has also discharged its onus in explaining the nature of source and the cash credit. It is also well settled that the assessee can be made to explain the source of the credits in the books of account, but not the source of the source, i.e., source of the creditors. In our view, the CIT(A) as well as the Tribunal while taking into consideration the material and documents and appreciating the evidence available on the record, have recorded a pure finding of fact which cannot be interfered by this cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were treated as undisclosed income under section 68 of the Act by the Assessing Officer. The Assessing Officer vide its order dated 31-3-2003 made certain additions/disallowances, including the aforesaid addition. On appeal by the assessee, the Commissioner of Income-tax (Appeals) vide its order dated 23-2-2005 partly accepted the appeal of the assessee and deleted the aforesaid addition, while observing as under:- The issue has been examined. I have carefully gone through the records which include the statement on oath of the various persons, bank accounts, Income-tax details, affidavits and confirmations and hold that the Assessing Officer was not justified in treating any of the aforesaid sums as undisclosed income of the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case, the Hon ble ITAT was right in law in not appreciating the fact that the cash deposits were made into bank account of creditors immediately prior to advancing the loan ? (ii)Whether on the facts and circumstances of the case, the Hon ble ITAT was right in law in deleting the addition of ₹ 17,84,000 in respect of alleged loan credits, though creditworthiness of the loan creditors was not established by the assessee ? 4. We have heard the counsel for the appellant and perused the record of the case. In this case, the assessee had taken loan of ₹ 25,49,000 from 18 parties, the details of which are available in the assessment order. The Assessing Officer accepted the loans taken from three persons, i.e., ₹ 7,65, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case, a perusal of the impugned order passed by the Tribunal reveals that in the instant case the assessee has discharged its onus to prove the genuineness of the cash credit by placing on record before the Assessing Officer sufficient material/evidence. Not only the identity of the creditor has been established by producing the record of the assessee in which those transactions have been duly accounted for, but the assessee has also discharged its onus in explaining the nature of source and the cash credit. It is also well settled that the assessee can be made to explain the source of the credits in the books of account, but not the source of the source, i.e., source of the creditors. 7. In our view, the Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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