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TMI Blog2014 (7) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, had no option but to hear the appeal in the absence of the assessee. We have also examined the grounds of appeal and we find that the appeal can be adjudicated on merit even in the absence of the assessee. Accordingly, the Revenue was heard. 3. Having carefully examined the orders of the authorities below, we find that the Assessing Officer has noticed cash credit of Rs. 27,99,139/- in the books of account of the assessee. The assessee was asked to furnish confirmatory letters and other evidence to prove the creditworthiness of the creditors. In response thereto, assessee furnished relevant information. The Assessing Officer was convinced with the explanation furnished by the assessee with regard to major cash credit of Rs. 17,01,75 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was held that in order to discharge the onus under section 68 to show that the cash credits do not present the Income, the appellant has to prove - i) identity of creditor ii) credit worthiness of the creditor iii) genuineness of the transaction 5(3) In the impugned assessment, the appellant discharged the onus by giving the identity of the persons from whom the money was received by furnishing the PAN numbers and where ever possible, the copies of Voters ID card or Driving License etc. The transactions with the creditors are through cheques and interest has been paid to the creditors. The creditors who have advanced loans to the appellant have given their conformations which were filed with the AO. I am therefore of the opinion that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such amount of money or part thereof from the creditor, by way of cheque in the form of loan and in such a case, if the creditor fails to satisfy as to how he had actually received the said amount and happened to keep it in the bank, the said amount cannot be treated as income of the assessee from undisclosed sources." 4(4) Another crucial point to note is that the assessee made payment of interest to creditors which were accepted by the AO as no corresponding disallowance has been made. The issue has been discussed in the case of Rohini Builders as under - Rohini Builders vs. DCIT 76 TTJ 521(Ahmd.) Income- Cash credit - Burden of proof - Assessee furnished complete addresses of all the creditors along with GIR numbers/ PAN as well as con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law arises -appeal of the department dismissed. C. CIT vs. Rohini Builders 254 ITR 275 Supreme Court dismissed the SLP filed by the revenue against the judgement dated 19-3-2001 of the Gujarat High Court in Tax Appeal No. 65 of 2001, whereby the high Court dismissed the appeal of the revenue on the ground that no substantial question of law arose. The assessee was a firm engaged in the business of dealings in land. The assessee had taken loans from various parties and at the time of assessment proceedings, the assessee had furnished confirmations giving the addresses of all the depositors. The Assessing Officer passed a detailed order treating the cash credit of Rs. 12.8 lakhs as unexplained. The Tribunal relying on 237 ITR 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh credit. Section 68 of the Ac: makes it clear that in respect of a cash credit entry the explanation offered by the assessee can be rejected by the Income Tax Officer on cogent grounds. When such grounds themselves are based on no evidence, the question of presumption against the assessee does not arise. 4(6) I find from my examination that the assessee established the identity of the creditors, the confirmations have been filed and so have the PAN numbers of the creditors. The transactions are through banking channels and there is payment of interest to several creditors which has been accepted by the AO. It is evident therefore from the above that once the existence of the creditors is proved and such persons own the credits which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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