TMI Blog2020 (3) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... Babu Jethani. Now the onus shifts on to the department to conduct further enquiries with respect to the unsecure loan and establish that why assessee's case cannot be accepted - where the assessee had led evidences in support of the identity of the third party and his capability the initial burden which lies upon him stand discharged. It will not before the assessee thereafter to explain further how or in what circumstances the third party obtained the money and how or why he came to make a deposit of the same with the assessee. In such a situation the burden will shift on to the department to show why the assessee's case cannot be accepted and why it must be held that the entry, for purporting to be in the name of a third party st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition has been confirmed rejecting the detailed explanation and evidences brought on record by the assessee to prove the identity and creditworthiness of the lenders as well as the genuineness of the transaction. 2. The brief facts of the case are that the assessee is a Director in M/s R.G. Consultants Private Limited. On 23.11.2010, a survey was conducted at the premises of R.G. Consultants Private Limited. Thereafter, it was observed that there were some cash credits from the related parties, which led the Ld. DCIT, Circle 15(1)) conclude the assessment, by making an addition of ₹ 22,70,000/-. On appeal, the Ld. CIT(A), deleted the additions in the hands of the M/s R.G. Consultants Private Limited. But, the CIT(A) directed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed the addition of ₹ 7,50,000/- made by the AO on account of amount received in the bank account of the assessee treating the same as unexplained credits under section 68 of the Act. It was further submitted that Ld. CIT(A) has confirmed the addition in dispute by rejecting the detailed explanation and evidenced brought on record by the assessee to prove the identity and creditworthiness of the lenders as well as the genuineness of the transaction. To support his aforesaid contention, he filed the written submissions as well as Paper Book containing pages 1-100 in which he has attached the various documentary evidence to support the case of the assessee and requested by considering the written submissions as well as the documentary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusion, the department has to be in possession of sufficient and adequate material. It is noted that assessee has received these amounts from his friend, Sh. Babu Jeethani. The assessee had also submitted the proof of identity of the lender as well as the copy of confirmations, which itself establish the existence of the lender and which has not been doubted by the AO as well as the Ld. CIT(A). Thus, the genuineness of the transactions gets established through the evidences submitted by the assessee. To support this view, I draw my support from the decision of the ITAT, Mumbai Bench in the case of ACIT vs. Calvin Properties, in ITA No. 6561, 6562 6564/Mum/2017 dated 3.4.2019 wherein it has been held as under:- 15. In this case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmations, copy of resident identity card of Sh. Babu Jethani. Now the onus shifts on to the department to conduct further enquiries with respect to the unsecure loan and establish that why assessee's case cannot be accepted. However, it is settled law that where the assessee had led evidences in support of the identity of the third party and his capability the initial burden which lies upon him stand discharged. It will not before the assessee thereafter to explain further how or in what circumstances the third party obtained the money and how or why he came to make a deposit of the same with the assessee. In such a situation the burden will shift on to the department to show why the assessee's case cannot be accepted and why it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quiry report, which collected certain facts and the statements of Mr. Mahesh Garg that the income sought to be added fell within the description of Section 68. 7. Having regard to the entirety of facts and circumstances, the Court is satisfied that the finding of the Tribunal in this case accords with the ratio of the decision of the Supreme Court in Lovely Exports (supra) 8. The decision in this case is based on the peculiar facts which attract the ratio of Lovely Exports (supra). Where the assessee adduces evidence in support of the share application monies, it is open to the assessing officer to examine it and reject it on tenable grounds. In case he wishes to rely on the report of the investigation authorities, some meaningf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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