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TMI Blog2018 (4) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... case. 2. The Ld. CIT(A) erred in deleting the addition of Rs. 1,16,50,000/- made towards unproved cash credits u/s 68 of the Act without appreciating the fact that the assessee failed to prove the cash credits as genuine. 3. The Ld. CIT(A) ought to have appreciated the fact that the loan creditors have made cash deposits in their bank accounts just before the date of the loans advanced to the assessee company and the assessee did not cooperate with the Department at the time of assessment proceedings in such investigation. 4. The Ld. CIT(A) ought not to have allowed the fresh evidence without calling for the remand report from the A.O. under Rule 46A of the IT Rules. 5. Any other ground that may be urged at the time of hearing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id proposal. Thus, the assessee has grossly failed to stand the test of (1) identity (2) creditworthiness and (3) genuineness of the transactions in respect of the above two unsecured loans as it did not file any material whatsoever to stand the test of the above three parameters. This manifests the fact that these two alleged unsecured loans for a value totaling to Rs. 1,16,50,000/- are squared up ones sourced out of the unaccounted funds of the assessee company. Hence, the entire unproved cash credits (alleged unsecured loans) in the names of the above two persons totaling to Rs. 1,16,50,000/- are hereby disallowed u/s 68 of the Income Tax Act, 1961 and brought to tax as the assessee's income from 'other sources'. The AR was communicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors i.e. Smt. P. Seshamma and Smt. M. Padmavathi. This aspect was not addressed by the CIT(A) at all. It is also submitted that the returns filed by the loan creditors subsequent to the assessment is only after thought and it cannot be accepted. He prayed that addition made by the A.O. may be sustained. 5. On the other hand, the Ld. Counsel for the assessee has submitted that the assessee has proved the identity, creditworthiness and genuineness of the parties and therefore, the A.O. is not justified in making the addition. The Ld. CIT(A0 by considering the returns filed by the loan creditors addition was deleted. Therefore, the order passed by the CIT(A) may be upheld. 6. We have heard both the parties, perused the materials available o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction is also genuine, what prevented the assessee to produce the details before details before the A.O. is neither explained before the CIT(A) nor before us. The A.O. during the course of assessment proceedings has given ample time from 24.11.2014 to 26.3.2015 i.e. near about 4 months time available to the assessee to produce the details. The assessee neither produced the details before the A.O. nor explained before the A.O. that these transactions are genuine transactions. When the A.O. has asked the assessee to produce these relevant details, he has not given any explanation and simply kept silent. Even before CIT(A) also why he was not able to file the details has not been explained. Under these facts and circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is added in the hands of the assessee as an income from other sources. In view of the above, we reverse the order passed by the Ld. CIT(A) and this ground of appeal raised by the revenue is allowed. 8. Hence, the appeal filed by the revenue is allowed. 9. In view of our decision above, Ground No.3 is merely academic and no adjudication is required and ground No.4 which is already considered and therefore, no separate adjudication is required. 10. In the result, the appeal filed by the revenue is allowed. C.O.28/Vizag/2017: 11. There is a delay in filing the cross objection but no condonation petition is filed by the assessee. Therefore, the cross objection filed by the assessee is dismissed. The above order was pronounced in the ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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