TMI Blog2014 (7) TMI 1289X X X X Extracts X X X X X X X X Extracts X X X X ..... n filing return showing a smaller income cannot have any saving. We find that when the details of the loan creditors, PAN nos. and their Income tax returns were available to the AO the ratio of the above judgment mandates that the addition cannot be made without making any enquiry from the AO of the loan creditors. Furthermore, the assessee has submitted all the necessary details. The loan amounts are individually not large amounts. Under these circumstances it cannot be presumed that the loan creditors did not have the capacity to make that loan. In these circumstances respectfully following the decision cited above we set aside the orders of the authorities below and decide the issue in favour of the assessee. - ITA No.2677/Kol/2013 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said loan should be added in their hands. 5. That Ld CIT(A) should not had disbelieved the Balance Sheet of the Loan creditors filed along with I.T.return where sources of Cash Deposit for the loans were fully explained. 6. That Learned CIT(A) should not have added the loan taken when the loan creditors had proved :- a) Their Identity b) Genuineness of transaction i.e. through Bank c) Sources of fund available to them as shown in the Balance Sheet filed by them along with their Income Tax Return 7. That the assessment made by the learned CIT(A) is based on assumption, presumption and surmises and against the principal of natural justice. 8. That appellant reserves her right to adduce additional gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. Mrs.Shankar Shaw 1,00,000 13. Mr.Sumit Kumar Kedia 1,00,000 14. Mr.Sunil Sharma 1,00,000 15. Mrs.Uma Devi Jhawar 1,00,000 16. Mr.Vijay Rajak 2,00,000 Total 21,45,000 In this regard the assessee also submitted confirmation of the loans and also submitted detail of PAN No., Income tax returns, balance sheet of the loan creditors. However, the AO was not satisfied with the submission of the assessee. AO doubted the creditwo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. Counsel of the assesee submitted that the assessee has submitted all the relevant details of the loan creditors. Their confirmation has also been given, their PAN Nos. and copy of the Income tax returns filed along with the balance sheet has also been submitted. Hence he submitted that the assessee has duly discharged her onus. He further claimed that the ld. CIT(A) has erred in treating the income or earning of the Loan creditors during that particular year as the only criteria for capacity for loan given, whereas the loan had been given from out of old savings. The ld. Counsel of the assessee further placed reliance upon the decision of the Jurisdictaional High Court in the case of CIT vs M/s.Dataware Private Limited in ITAT No.263 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of the creditor and brand the same as unworthy of credence. So long it is not established that the return submitted by the creditor has been rejected by its Assessing Officer, the Assessing Officer of the assessee is bound to accept the same as genuine when the identity of the creditor and the genuineness of transaction through account payee cheque has been established. We find that both the Commissioner of Income Tax (Appeal) and the Tribunal below followed the well-accepted principle which are required to be followed in considering the effect of Section 68 of the Act and we thus find no reason to interfere with the concurrent findings of fact recorded by both the authorities. The appeal is thus devoid of any subst ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
