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2015 (10) TMI 536 - ITAT AHMEDABAD

2015 (10) TMI 536 - ITAT AHMEDABAD - TMI - Unexplained cash credits - CIT(A) deleted the addition - Held that:- CIT (A) while deleting the addition in respect of the addition made on account of loan from Ankur Diamond has noted that Ankur Diamond is a creditor for goods of M. Kantilal & Co., of which assessee is a partner and that the amount of credit is fully explained and is only a book entry. However before us no material in the form of evidence like copies of bill, ledger account as appearin .....

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hirubhai Savani, on pursing the copy of Balance sheet of Dhirubhai Savani, which has been placed at page 31 of the paper book, it is seen that the amount is stated to be receivable from “Pravinbhai M. Patel”. There is no material on record to show that whether Pravinbhai M. Patel that is reflected in the Balance sheet of Dhirubhai Savani refers to the assessee or it refers to some other person. Considering the totality of the aforesaid facts and more so the indifferent approach of the assessee, .....

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08-2009 for Assessment Year 2006-07. 2. The relevant facts as culled out from the material on record are as under. 3. The assessee is an Individual stated to be a partner of M/s. Kantilal Exports and M/s.Vipul & Co., and deriving income by way of share of profit from the aforesaid firms and interest. The assessee filed his return of income for Assessment Year 2006-07 on 15-02-2007 declaring total income of ₹ 43,78,465/-. The case was selected for scrutiny and thereafter assessment was .....

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Ld. CIT (A) has erred in law and on facts in deleting the addition of ₹ 39,52,05,409/- made on account of unexplained cash credits by accepting the genuineness and creditworthiness of loan creditors. 2. The Ld. CIT(A) has erred in law and on facts in accepting the creditworthiness of these loan creditors even when the assessee did not give any details about the loans taken and sundry creditors of these loan creditors which would have explained the sources of loans given to the assessee and .....

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the A.O. 4. On the date of hearing none appeared on behalf of the assessee nor was any adjournment application filed on their behalf. Before us Learned D.R. submitted that on earlier hearing that was held on 17-3- 2015, it was brought to the notice of the Hon ble Bench which was headed by Hon ble V.P. as Senior Member that the assessee was in the habit of seeking adjournments on frivolous grounds. She submitted that after considering the submissions of D.R. Tribunal had adjourned the case to 10- .....

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. about the status of payment of cost of ₹ 1,000/- that was imposed on assessee by the Bench on previous occasion to which Ld. D.R. submitted that she was not aware as to whether the assessee has paid the cost as directed by the co-ordinate Bench. On perusal of the records, we find that the order of the Bench dt. 17-3-2015 (with respect to imposing cost of ₹ 1,000/- and it being the last adjournment) was communicated to the assessee by the Registry. Before us the assessee has not pla .....

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to the additions on account of cash credit. 6. During the course of assessment proceedings and on perusing the balance sheet, Assessing Officer noticed that the assessee has obtained cash credits of different amounts from various persons, (the list of which is reproduced by the Assessing Officer at page-5 of the order) and the aggregate amount of such loan was ₹ 38,52,05,409/-. Assessing Officer asked the assessee to furnish the confirmations, agreement with the creditors if any, names an .....

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68 of the Income tax Act and accordingly made addition of ₹ 32,32,05,409/-. 7. Aggrieved by the order of Assessing Officer the assessee carried the matter before Ld. CIT (A) who deleted the addition by holding as under:- 3. I have considered the facts and the submissions. I agree with the appellant s view. The Hon ble Gujarat High Court in the case of CIT vs. Rohini Builders reported at 256 ITR 360, held as under: Cash credit - assessee furnished complete addresses of all the creditors alo .....

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redit-once the existence of the creditors if proved and such persons own the credits which are found in the books of the assessee, the assessee s onus stands discharged and the latter is not further required to prove the source from which the creditors could have required the money deposited with him either in terms of section 68 or on general principle- In the absence of anything to establish that the sources of the creditors deposits flew from the assessee, the cash credits cannot be treated a .....

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sessee is a partner. On 31-03-2006, the entry for transfer of ₹ 12,22,83,985/- was passed in the books of M/s. M. Kantilal Exports by debiting account of M/s. Ankur Diamond N.V. and crediting account of Shri Pravinbhai Mohanbhai Kheni. Thus, it is only a book entry and fully explained. The entry in respect of Megh Mayur Reality Pvt. Ltd., is from sale of land, in respect of which, the assessee has filed details. In view of the facts, and the case laws discussed above, in my view, the loans .....

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submitted that it is for the assessee to prove the identity of the creditors, their creditworthiness and genuineness of the transactions which the assessee has failed. She thus supported the order of the A.O. 9. We have heard the Ld. D.R. and perused the material on record. On perusal of the paper book that has been filed by the assessee we find that though as per the index to paper book which is certified by the assessee, that it has pages from 1 to 360 but in fact in both the copies of paper b .....

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emand report are also not on record and therefore we do not have the benefit of perusal of the documents not filed by the assessee though stated to have been filed. We are therefore of the view that the conduct of the assessee whereby he is certifying and stating about filing all the documents but in fact not filing all the papers, not appearing before the Tribunal and seeking repeated adjournments, not filing of evidence of payment of cost that was levied by the Tribunal shows the conduct of th .....

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r account as appearing in their respective books etc. has been placed on record by assessee which could get support to the findings of Ld. CIT (A). Similarly in respect of deletion of addition of amount received from Megh Mayur Reality Pvt. Ltd., CIT (A) has held that the entry is from sale of land and is fully explained. We however find that apart from other details which could support the findings of Ld. CIT (A) the translated copy of sale deed is not on record. With respect to loan of ₹ .....

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