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TMI Blog2016 (5) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961 upholding that the loans received by the appellant during the relevant year were not genuine and that the creditworthiness of lenders is not proved, when the same was duly established by the documents placed or record. The facts of the case and the submissions of the appellant are not considered in right perspective and various findings made by the Id. CIT(A) including that all the 7 unsecuredv lenders were apparently unconnected persons are either factually incorrect or untenable law. 3. That the Id. CIT(A) has grossly erred in law as well as on the fact of the case by confirming the addition of Rs. 31,90,7997- u/s 40{a)(ia) of the Income Tax Act, 1961, for alleged non -deduction of TDS for various reasons including the following:- a) The Id- CIT-(A) has grossly erred on the facts of the case by holding that none of the persons to whom payments were made were agents of foreign shipping lines. Despite the fact that bills of two persons out of five clearly state that they are agents of foreign shipping lines and those bills were duly placed on record and detaifshowing the amount paid by the remaining three parties to foreign shipping line was also placed on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the assessee is in appeal before us. 4. The ld. AR of the assessee submitted a Paper Book wherein the details of income tax return, computation of income, statement of affairs of bank statement of the seven creditors are submitted. The ld. AR of the assessee submitted that despite filing the confirmation no summons have been issued to these parties. Hence, the addition has been wrongly made by the AO and the same was wrongly confirmed by the ld.CIT (A). 5. The ld. DR relied on the orders of the lower authorities and submitted that assessee has failed to prove the creditworthiness and genuineness of the transaction. 6. We have carefully considered the rival contention. We have also perused the Paper Book submitted before us containing the details of unsecured loans wherein with respect to all seven lenders their confirmation, Copy of bank account computation of total income and return of income along with statement of affairs are submitted. In ITA No 438/Del/2015 we have dealt with the issue of cash credit of these lenders where they have also lent money to another assessee M/s Fazal FrozenFoods for AY 2010-11 where on identical facts, evidences and circumstances we have d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed. Further, while preparing the statement of affairs of all these persons having opening balance of their capital accounts i.e. sum of Rs. 1632000/- in the name of Mrs. Farhanha Praveen Rs. 10.94 lacs in the name of Mrs. Mehmooda Begum, Rs, 12.94 lacs in the name of Mrs. Naseem Bano and Rs. 10.66 lacs in the name of Sabana Praveen are shown. In past no loan is given to the assessee and other sister concern of the assessee. In same the statement of the affairs of some of the lenders sundry creditors are shown which are also cannot be identified. From the statement of affairs surprisingly there is no profit and loss account was available no income and expenditure statement has been prepared. While filing the computation of total income along with return of income only income from embroidery and knitting is mentioned. There is no detail of gross income or expenditure incurred by these assesses on their respective business is shown. All the computation of income, statement of affairs and capital account has been prepared in similar fashion. Surprisingly all the 10 lenders have opened their bank account with the same branch of Dena bank i.e. Dena Bank, Subash Bazar, Meerut City. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- has been shown, further in his bank account only cash of Rs. 25,000/- is available. In the case of Rehmat Elahi, the facts are also identical. Therefore all these evidences in case of lenders lead that the identity of these creditors have been proved and nothing else. In view of the above facts, we confirm the order of the learned Commissioner of Income tax (Appeals) confirming addition of Rs. 6125000/- with respect to 10 lenders unsecured loan added u/s 68 of the Act. Accordingly, ground No.1 of the appeal is dismissed. 7. In this case in some of the bank accounts there are entries of transfer deposits in the bank account of these persons before the issue of cheque to the assessee. However we could not find any entry of unsecured loan in the statement of affairs of these parties except gift received from the mother of Rs. 50,000/- in some accounts. Therefore there is no source available with the assessee of the sums shown to have been received by the lenders through banking transfer entries in their account. Further the finding of the CIT (A) in a tabular form at page no 9 of his order also depict the modus operandi of the amount deposited in the books of the assessee as u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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