TMI Blog2017 (8) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... a Trading Company and M/s Vishal Traders have been used for suppressing the profits of the business. Even though the books of account have not been rejected, since the AO has clearly established that the purchases were bogus, there is no justification for accepting the contentions of the AR that only part of the purchase should be disallowed. In view of the above observations this addition made by the AO was rightly upheld by the Ld. CIT(A), which does not need any interference on my part, hence, uphold the order of the Ld. CIT(A) on the issue in dispute and dismiss the issue in dispute raised by the Revenue. - ITA No. 5818/DEL/2016 - - - Dated:- 8-8-2017 - Shri H. S. Sidhu, Judicial Member Assessee by : Sh. Kapil Goel Sh. Mukul Gupta, Advocates Revenue by : Sh. T. Vasanthan, Sr. DR ORDER The Assessee has filed the Appeal against the Order dated 08.9.2016 of the Ld. CIT(A), Karnal pertaining to assessment year 2012-13 on the following grounds:- 1. That on the facts and in the circumstances of case and in law, the Ld. CIT Appeals erred in confirming an assessment made by an Ld. AO at taxable income of ₹ 36,65,080/-, which no person acting judiciall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . of the assessee attended the proceedings from time to time and filed the information / evidence which have been examined. During the assessment proceedings, AO noted that assessee had accepted unsecured loans from Kanta Chugh of ₹ 1.50 lacs on 20.12.2011, from Krishna Wanti Chugh of ₹ 2.50 lacs and Renu Chugh of ₹ 2.20 lacs on 8.2.2012. The AO observed that cash deposit had been made in the bank accounts of these parties on the same day when cheques were issued to the assessee. The AO further observed that the assessee was given an opportunity to explain and establish the creditworthiness of the parties from whom the loans had been taken. However, on pages 2 to 4 of the assessment order, considering the facts of the persent case the AO has relied upon various judicial pronouncements to conclude that the creditworthiness of the parties had not been established. Accordingly, the AO added the total addition of ₹ 28,66,261/- to the income of the assessee and assessed the income of the assessee at ₹ 36,65,080/- vide order dated 24.3.2015 passed u/s. 143(3) of the I.T. Act, 1961. Against the order of the AO dated 24.3.2015, assessee appealed before the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties immediately preceding the cheque issue to the appellant towards unsecured loans. The AO has highlighted that the credit worthiness of the parties had not been established by the assessee. 2.5 On page 3 of the assessment order the AO has pointed out that the poor cash balance in the saving bank account of the three parties raises doubt about the credit worthiness of these parties. 2.6 Another important aspect detected by the AO highlights that the cash amount deposited in the saving bank accounts was deposited by one person namely Mukesh. Such an action appears to be suspicious and non genuine. The AO has therefore rightly raised his doubts that the genuineness and credit worthiness of these unsecured loans have not been established by the assessee and the initial onus had therefore not been discharged by the assessee. 2.7 On the other hand the A .appellant has only emphasized that Income Tax Return, PAN and other details have been filed by the assessee before the AD and therefore the credit worthiness of the parties has been established. However, the AR has not provided the details of returned income of the parties and the explanation for deposit of cash by o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, I find that AO has made the addition by highlighting that with regard to the three parties, Kanta Chugh. Krishna Wanti Chugh and Renu Chuqh; there were cash deposits in the back account of these parties immediately preceding the cheque issue to the assessee towards unsecured loans. The AO has highlighted that the credit worthiness of the parties had not been established by the assessee. I further find that on page 3 of the assessment order the AO has pointed out that the poor cash balance in the saving bank account of the three parties raises doubt about the credit worthiness of these parties. Another important aspect detected by the AO highlights that the cash amount deposited in the saving bank accounts was deposited by one person namely Mukesh. Such an action appears to be suspicious and non genuine. In my considered opinion, the AO has therefore rightly raised his doubts that the genuineness and credit worthiness of these unsecured loans have not been established by the assessee and the initial onus had therefore not been discharged by the assessee. On the other hand the assessee has only emphasized that Income Tax Return, PAN and other details have been filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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