TMI Blog2015 (10) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... We are of the view that only that cannot be a ground for making the addition and treating the cash credit as unexplained credit. There is no bar against any person on depositing cash in his bank account. Deposit of cash in the bank account can raise a doubt in the mind of Assessing Officer and on that basis, he is supposed to carry out further investigation to take issue to the logical end. This loan is reflected in the books of the CSR Electronics Pvt. Ltd. Further the bank statement of CSR Electronics Pvt. Ltd. reflects that there are various debits and credits through cheques. Assessing Officer’s allegation is that there is a deposit of cash in the bank account of the creditor but we find that all the money has not been deposited i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Jain, Advocate For The Revenue : Shri Sunil Bajpai, CIT ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : This appeal filed by the Revenue emanates from the order of the CIT(Appeals)-I, New Delhi dated 13.12.2012 for the Assessment Year 2003-04. 2. The revenue has taken the following grounds of appeal :- 1. The order of the Ld. CIT (Appeals) is not correct in law and facts. 2. On the facts and in circumstances of the case the Ld. CIT(A) has erred in law, fact and in circumstances of the case in deleting the addition of ₹ 10,00,000/- made by AO on unexplained unsecured loan received from M/s CSR Electronics P. Ltd. since the genuineness of transaction and creditworthiness of the company was not proved. 3. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmation, copy of the income tax return as well as the bank statement of the CSR Electronics Pvt. Ltd. The Assessing Officer was not satisfied with the explanation of the assessee company and added a sum of ₹ 10 Lakh as unexplained credit and also interest of ₹ 22,027/- paid to this creditor during the year under consideration. The allegation of the Assessing Officer was that there is a deposit of ₹ 5 Lakh in cash before the payment of ₹ 5 Lakh to the account of the assessee company. 5. Aggrieved by the order of the Assessing Officer, the assessee came in appeal before the CIT(A). The CIT(A) has deleted the addition by holding as under:- 5.3 I have carefully considered the assessment order and the submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee having failed to prove the source and genuineness the CIT(A) was not justified in deleting the addition. 7. As against this, the Ld. AR submitted that the addition has been rightly deleted by the CIT(A). It was submitted that it is a case of reassessment under section 153A and nothing incriminating was found during the course of the search. It was further submitted that the assessee has fully discharged its onus in respect of the loan under section 68 of the Act. It has submitted the income tax return of the CSR Electronics Pvt. Ltd. It has filed the balance sheet of the said company and also copy of account duly confirmed with PAN and complete address. The payment has been received by cheque in the month of January, 2003 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed to income tax and it has confirmed having made the payment. The Assessing Officer s only allegation as emerging from the assessment order is that there is a cash deposit in the bank account of the CSR Electronics Pvt. Ltd. We are of the view that only that cannot be a ground for making the addition and treating the cash credit as unexplained credit. There is no bar against any person on depositing cash in his bank account. Deposit of cash in the bank account can raise a doubt in the mind of Assessing Officer and on that basis, he is supposed to carry out further investigation to take issue to the logical end. This loan is reflected in the books of the CSR Electronics Pvt. Ltd. Further the bank statement of CSR Electronics Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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