TMI Blog2009 (3) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... liance on the assessment order with the submission that the assessee had failed to discharge its onus in establishing the identity, creditworthiness of the creditors and genuineness of the transaction hence the AO was justified in denying the claimed loan stated to have been taken from 13 persons. The learned CIT(A) was not justified in deleting the same. The learned Authorised Representative on the other hand has tried to justify the first appellate order with the submission that in the remand report called by the learned CIT(A), the AO after verifying the contents of the affidavit has reported that the creditors have confirmed the amount of fresh loan given to the assessee. Considering the same the learned CIT(A) has rightly deleted those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were also filed by them. All are assessed to tax and their PANs were also given. Copies of ledger and acknowledgement of IT returns were also filed in almost all the cases. In the case of Sanjana Kanungo, copy of PAN was filed along with the confirmation, affidavit, ledger as well as bank pass book. Since the AO had doubted the PANs, copies of their PANs were submitted before the learned CIT(A). The learned CIT (A) called for the remand report on the submission of the assessee from the AO and the AO vide letter dt. 12th March, 2008 has reported that the creditors have confirmed the amount of fresh loan given to the assessee. The AO has also reported that with a view to verify the capacity of creditors for advancing loan to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en pleased to hold that where identity of creditors is established and they have confirmed the credit by making statements on oath, this also satisfies the requirement of discharging the burden on the part of the assessee to prove genuineness of the transaction. However, capacity of the lender to advance money to assessee was not a matter which the assessee could be required to establish and that would amount to calling upon him to establish the source of source, hence addition cannot be sustained. In yet another recent decision in the case of Kanhaialal Jangid vs. Asstt. CIT (supra) the Hon ble jurisdictional High Court has been pleased to hold that the assessee filed confirmation from the creditors and having produced the creditors before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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