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TMI Blog2020 (2) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... nd are being disposed of by a common order. 2. IT(SS)A No. 214/Ahd/2016 has been taken as the lead case. The brief facts leading to this case is that subsequent to the search proceedings carried out in the group cases of Ankur Dalal Group on 28.03.2012, a notice under Section 142(1) along with a questionnaire was issued on 23.10.2013, followed by further notice under Section 142(1) along with a detailed questionnaire dated 05.12.2013, which were served upon the assessee with the direction to furnish certain details/documents and to produce the books of accounts in order to explain the nature of transactions of the documents seized during the search. In response to these notices, the assessee filed certain documents as called for, including books of accounts and the relevant details thereof. During the course of assessment proceedings, it was found that many members of different families allegedly extended loans to the assessee firm, one of which is Thakkar family. Along with others, one Smt. Kalpanaben P Thakkar allegedly extended loan to the assessee firm to the tune of Rs. 7,00,000/- during the assessment year 2010-11 and Rs. 1,00,000/- during the assessment year 2011-12. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rthiness of source of sub-creditors. Since the assessee had all along and all through provided the entire details of transactions with Smt. Kalpanaben Thakkar, thereby sought to justify the creditworthiness and genuineness of the lenders, addition in the hands of the assessee is not permissible. He further relied upon the judgement of the Hon'ble Delhi High Court in the matter of CIT vs. Shiv Dhooti Pearls & Investment Ltd, reported in [2015] 64 taxmann.com 329 (Delhi). The judgment passed by the Hon'ble jurisdictional High Court in the matter of PCIT vs. D&H Enterprises, reported in [2016] 72 taxmann.com 91 (Guj.) has also been relied upon by him. In this regard, he argued that it is the duty incumbent upon the Revenue to verify the accounts of the lender and even in the event the lender fails to appear before the authorities below, the transactions could not be held to be non-genuine. On the other hand, Learned Departmental Representative relied upon the orders passed by the authorities below. 4. Heard the parties. We have also perused the relevant materials available on record including the judgements relied upon by the Learned Counsel appearing for the assessee. Basically the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d judgment is as follows:- "14. In Mod. Creations Pvt. Ltd. (supra) this Court negatived the case of the Revenue that the onus was on the Assessee to prove the source of the sub-creditor. It was observed as under: "14. With this material on record in our view as far as the Assessee was concerned, it had discharged initial onus placed on it. In the event the revenue still had a doubt with regard to the genuineness of the transactions in issue, or as regards the credit worthiness of the creditors, it would have had to discharge the onus which had shifted on to it. A bald assertion by the A.O. that the credits were a circular route adopted by the Assessee to plough back its own undisclosed income into its accounts, can be of no avail. The revenue was required to prove this allegation. An allegation by itself which is based on assumption will not pass muster in law. The revenue would be required to bridge the gap between the suspicions and proof in order to bring home this allegation. The ITAT, in our view, without adverting to the aforementioned principle laid stress on the fact that despite opportunities, the Assessee and/or the creditors had not proved the genuineness of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its possession, namely, names, permanent account numbers, income tax returns, and bank statements of all the investors. The amounts in question had been received by way of account payee cheques. Having regard to the fact that the permanent account numbers and the income tax returns of all the investors had been furnished by the assessee, the Assessing Officer could have easily verified the same. He, however, placed reliance upon the fact that the summons issued to the parties under section 137 of the Act could not be served and hence, did not accept the genuineness of the transactions. In the opinion of this court, taking into account the concurrent findings of fact recorded by the Commissioner (Appeals) and the Tribunal, it cannot be said that the conclusion arrived at by the Tribunal is, in any manner, contrary to the record or that the same suffers from any legal infirmity so as to give rise to any question of law, much less a substantial question of law warranting interference." 7. If both the ratios of aforesaid judgments are applied in the instant case before us, then it is beyond doubt that the additions cannot be made in the hands of the assessee, particularly when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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