TMI Blog2019 (9) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... been made to verify the transactions from the creditors. Since all the creditors were assessed to tax and their PAN were available to the A.O, therefore, A.O. could have examine the source of their income from the income tax record. But the A.O. did not do anything in the matter. Decision of the Hon ble Supreme Court in the case of Orissa Corporation Pvt. Ltd. [1986 (3) TMI 3 - SUPREME COURT] would apply. The assessee in these circumstances is able to discharge onus upon it to prove the ingredients of Section 68 . No material has been brought on record that the credit amount introduced by the creditors was actually emanated from the coffers of the assessee so as to enable it to be treated as undisclosed income of the assessee - when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details asked for by the A.O. The assessee explained that unsecured loans/advances were received from the customers against the purchase of the goods. Ultimately, when goods could not be purchased, the amounts have been refunded to them. All the transactions are carried out through banking channel which are supported by their ledger account, copy of ITR, bank statement and other documents produced on record. Independent enquiries were also conducted in the cases of certain parties which A.O. has accepted. However, regarding three unsecured loans/advances received from M/s. Maa Bhagwati Trading Co. ₹ 15 lakhs, Noni Steels Pvt. Ltd., ₹ 30 lakhs and R.D. Steel Feb (P) Ltd., ₹ 20 lakhs, the A.O. noted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries in the books of account were not found wrong or fake. The assessee requested the A.O. to conduct direct enquiry from the parties, but, no steps have been taken despite assessee deposited ₹ 400/- in respect of enquiry to be conducted from these parties. The amount have been returned through banking channel. Learned Counsel for the Assessee referred to all these documents in the paper book to show that advances were received through banking channel which were returned through banking channel and are confirmed by the parties which is also supported by the copies of the bank statements. He has submitted that A.O. did not make any independent enquiry from these parties. Therefore, there is no default ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OM Prakash Singh V ACIT-ITA NO.331/agra/2016 - order dt.22.03.2019 (Agra Bench) 21-27 MUNNA LAL MURIDHAR VS CIT (1971) 79 ITR 540 (ALL) NathuRam Premchand (1963) 49 ITR 561(ALL) D. NO addition u/s 68 for non-production of depositors/Confirmation/non-service of summons etc.. Where confirmation/Bank details etc. filed H.R. Mehta V ACIT [2016] 72 taxmann.com 110 (Bombay H.C.) Himachal Fibers Ltd. [2018] 98 taxmann.com 173 (SC) - Affirming DEL.H.C. CIT V Jalan Hard Coke Ltd. [2018] 95 taxmann.com 330 (Rajasthan) SLP dismissed in [2018] 95 taxmann.com 331 (SC) / [2018] 257 Taxman 91 (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would apply. The assessee in these circumstances is able to discharge onus upon it to prove the ingredients of Section 68 of the I.T. Act. We rely upon Judgment of the Hon ble Gujarat High Court in the case of Rohini Builders 256 ITR 360 (Guj.) and Gauhati High Court in the case of Nemichand Kothari 264 ITR 254 (Gauhati). Since in this case the repayment made by assessee in subsequent year have not been disputed by the Revenue Department, therefore, case of assessee would also be covered by Judgment of Hon ble Gujarat High Court in the case of CIT vs. Ayachi Chandrashekhar Narsangji (supra) and Hon ble Allahabad High Court in the case of CIT vs. Kapoor Chand Mangesh Chand (supra). The authorities below rejected the explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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