TMI Blog2010 (5) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... ke the addition u/s 68. We found considerable force in submissions made by the ld. counsel of the assessee that the addition of ₹ 10,00,000/- was made on doubt and suspicion and the Learned CIT(A) has given cogent reason for deleting the same. We, therefore, incline to uphold the order of Learned CIT(A). In the result, the appeal filed by the Revenue is dismissed. - Shri T.K. Sharma, J.M. Shri A.N. Pahuja, A.M. Appellant by : Smt. Neeta Shah, Sr. D.R. Respondent by : Shri R.K. Malpani ORDER Per Shri T.K. Sharma, Judicial Member : This appeal filed by the Revenue is against the order dated 01.11.2007 of Learned Commissioner of Income Tax(Appeals)-1, Surat deleting the addition of ₹ 10,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.03 and has been repaid by cheque between 17.6.05 and 11.10.03. These transactions are reflected in the bank account. The appellant has filed the intimation u/s. 143(1) of Uday Overseas Pvt. Ltd. issued by Ward 6(4) of Income Tax Department, Kolkata. The A.O. has brought no material on record to prove that the loan was in fact bogus. The appellant has established creditworthiness by filing intimation u/s. 143(1) and the balance-sheet shows that the source of funds of the lender company are quite high. Hence, the addition of ₹ 10 lacs made by the A.O. is deleted. This ground of appeal is, therefore, partly allowed . Aggrieved by the order of Learned Commissioner of Income Tax(Appeals) deleting the addition of ₹ 10,00,000/-, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount. However, on the same date, similar amounts of cash withdrawal was reflected therein. The balance in this account immediately before and after these transactions is very meager. 3.2. Continuing her submission, the ld. D.R. pointed out that on verification of cash book of the assessee, the Assessing Officer noticed that on various dates through the year, there are huge cash withdrawals from the bank account by way of self cheques. Further, after a period of time, the cash balances appearing in the books of account have been deposited back into the bank account of the assessee. The cash book of the assessee shows huge cash balances for a considerable period of time. These cash balances have never been utilized for any official expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 10,00,000/- under section 68 can be summarized as under :- (i) From the copy of balance-sheet of Uday Overseas Pvt. Ltd., it cannot be ascertained that loan of ₹ 10 lacs was given by the said company to the assessee. The schedule containing such details is not furnished by the assessee. (ii) On verification of the bank account statement of Uday Overseas Pvt. Ltd., it is seen that the cheque of ₹ 10 lacs was given by it to the assessee company on 29.4.03. This transaction is preceded by a credit entry of similar amount on 26.4.03. The balance in the said account immediately before and after the transaction was ₹ 11,171/- only. Therefore, it is seen that there are hardly any transactions in the bank accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies made in this regard the identity and the genuineness of such credit cannot be ascertained. The creditworthiness of these parties also could not be established because there is nothing in the bank statement before or after the transactions . 6. The Learned Commissioner of Income Tax(Appeals) on appreciation of entire facts noticed that the amount was received by account payee cheques. These were repaid by account payee cheques. The loans were taken in the previous year relevant to the assessment year under appeal and the same were paid in the said financial year. The mere fact that prior to issue of cheque, there is some cash deposit, in our opinion, this alone is no ground to make the addition under section 68 of the Income Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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