TMI Blog2011 (7) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... on of ₹ 8 lakhs sustained by the Commissioner of Income-tax (Appeals) in terms of section 68 of the Act. Briefly put the facts are that the assessee is an individual deriving income from share trading etc. In the course of assessment proceedings, it was noticed that assessee had received a loan of ₹ 8 lakhs from one M/s Global marketing. The Assessing Officer summoned the said party in response to which Shri Vinay Setia, partner of the said firm was examined. The said partner confirmed having advanced the impugned loan to the assessee, but the Assessing Officer was not satisfied about the creditworthiness of the creditor and accordingly, she treated the sum of ₹ 8 lakhs as an unexplained cash credit within the meaning of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t payee cheque which also stood confirmed by the creditor during the course of his examination by the Assessing Officer. It has also been pointed out that where the assessee has established the identity of the creditor and the creditor had accepted advancing of the amount to the assessee, no addition is permissible under section 68 of the Act and, in this regard reliance was placed on the following judgments: (i) Kanhzaiyalal Jangid 8 DTR 38 (Raj.); (ii) CIT v. Diamond Products Ltd. 21 DTR 9 (Del). (iii) Manoj Kumar Gupta v. ITO 114 TTJ 253 (Jp.) 5. On the other hand, the learned Departmental Representative, appearing for the Revenue, has defended the orders of the authorities below by pointing out that the explanation of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no material to say that the explanation furnished by the creditor is false. In fact, the creditor has confirmed and adequately explained the amount of loan advanced to the assessee. Merely because, in the opinion of the Assessing Officer, the source of the creditor was not infallibly proved, the same cannot be considered as a failure on the part of the assessee to discharge the onus cast on him under section 68 of the Act. Quite clearly, the onus on the assessee is to prove the identity, creditworthiness of the creditor, genuineness of the transaction and the same cannot be extended to prove the source of the creditors to the hilt. Therefore, having regard to the totality of facts and circumstances of the case, in our view, the inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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