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TMI Blog2010 (4) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... Act on the ground that cash creditors are well proved by establishing identity, genuineness and creditworthiness of the creditors. (2) On the facts and in the circumstances of the case the Ld. CIT(A) has erred in allowing the relief of ₹ 50,000/- out of total addition of ₹ 2,32,000/- under various heads on the ground that absence of proper regular vouchers in support of incurring expenses under these heads could not be viewed adversely." 2. The A.O. noted that the assessee has received cash credit being loan of ₹ 5,90,000/- from Smt. Kamala Garg, ₹ 4,50,000/- from Smt. Santosh Garg, ₹ 2,75,000/- from Smt. Seenu Garg and ₹ 1,20,000/- from Shri Rahul Garg, totaling to ₹ 14,35,000/- and added the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,75,000/- of Smt Seenu Garg W/o Shri Tulsi Narayan Garg, ₹ 1,20,000/- of Shri Rahul Garg, S/o. Shri Ram Kishore Garg. All were stated to be the resident of Sheopur, Distt. Sheopur. On perusal of the facts and rival contentions it is evident that all the cash creditors are regular assessees, with the Income Tax Officer, Shivpuri and all are holding PAN. All the loans were received by the appellant through account payee cheques. As regards the deposits in the bank accounts of the cash creditors are concerned, the same were reasonably explained before the AO which were stated to be from the repayment of loans and advances received from the friends and relatives to whom petty unsecured loans were stated to have been given earlier. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellant were also clearly reflected in the respective bank accounts of the lenders. The appellant also furnished before the A.O. the evidence that the assessee has paid interest on loan and deducted TDS thereon as per law and issued TDS certificates. In the summons the Assessing Officer has directed the appellant to produce evidence either personally or through authorised representative. In compliance of summons the lenders have sent affidavits to confirm the loan given to the appellant and have submitted that all the documents required in the summons were already submitted before the AO, through Shri Tulsi Narain Garg, Sheopur, the appellant. The learned counsel of the appellant has also furnished the copies of summons issued t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, deleted hereby." 3. The ld. A.R. before us reiterated the submissions made before the CIT(A) and submitted copies of the confirmatory letters, affidavit and other document as were filed before the A.O. in the Paper Book. He vehemently contended that the assessee has discharged his onus to prove the identity, creditworthiness and genuineness of the transaction and, therefore, no addition under section 68 of the Income-tax Act can be made. Reliance was placed on the following case law:- "1) DCIT vs. Rohini Builders (2002) 256 ITR 360 (Gujrat) 2) P.K. Sethi vs. CIT (2006) 286 ITR 318 (Gauhati) 3) ACIT vs. Suretech Hosp. & Research Centre (2006) 104 TTJ (Nag) 869 (ITAT Nagpur) 4) Bhagwan Das Sharda vs. ACIT (2004) 82 TTJ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived from 4 different parties i.e. ₹ 5,90,000/- from Smt. Kamala Garg, Wife of Shri Ram Dayal Garg, ₹ 4,50,000/- from Smt. Santosh Garg, Wife of Shri Ram Kishore Garg, ₹ 2,75,000/- from Smt. Seenu Garg, Wife of Shri Tulsi Narayan Garg and ₹ 1,20,000/- from Shri Rahul Garg, Son of Shri Ram Kishore Garg. All the cash creditors are regular assessees having Permanents Account Number (PAN). Thus, their identity is duly proved. All the loans were advanced by these parties thorough account payee cheque to the assessee. Thus, the transactions are also genuine. Each of the parties has duly confirmed that they have advanced the money to the party. All the necessary evidences were duly verified by the assessee before the A.O. i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal relates to allowing of relief of ₹ 50,000/- out of total addition of ₹ 2,32,000/-. 8. The brief facts relating to this ground are that the A.O. disallowed on adhoc basis a sum of ₹ 2,32,000/- out of various expenses as detailed in the Assessment Order mentioning therein that the disallowance are made in the absence of proper supporting bills and vouchers. When the matter went before the CIT(A), the CIT(A) reduced the disallowance to ₹ 50,000/- by observing as under :- "The A.O. has made disallowances on adhoc basis under the above heads repeating the similar ground for each disallowance that supporting bills and vouchers were not properly maintained, the payments were made in cash and the same could be of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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