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TMI Blog2020 (6) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... itors u/s 68 of the I.T. Act, 1961. The appellant reserves his right to add, amend or alter the grounds of appeal on or before the date, the appeal is finally heard for disposal. 3. Brief facts of the case as culled out from the records are that the assessee is an individual carrying on business of trading of gold & silver bar. E-return of income declaring income of Rs. 25,67,180/- was filed on 30.09.2012 for the Assessment Year 2012-13. The case was selected for scrutiny through CASS. Statutory notices u/s 142(1)/143(2) of the Act along with questionnaire were duly served upon the assessee. Assessment u/s 143(3) of the Act was completed on 31.3.2015 at Rs. 3,10,23,040/- making addition on account of unexplained expenditure u/s 69C at Rs. 2,19,13,800/- and unexplained loan creditors u/s 68 at Rs. 65,42,060/-. 4. Aggrieved assessee preferred appeal before Ld. CIT(A) and succeeded. 5. Now the Revenue is in appeal against the finding of Ld. CIT(A) deleting the addition made by Ld. A.O. 6. Ld. Counsel for the assessee along with supporting the finding of Ld. CIT(A) also referred to the written submissions placed before first appellate authority, judgments referred and relied ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observation about identity, creditworthiness and genuineness of transactions with any creditors, (See page No.135 to 140 of the paper book). Appellant duly discharged his burden laid on him u/s 68 in line with judicial pronouncements in case of Supreme Court held in case of _ CIT Vs. Orissa Corporation P. Ltd. 159 ITR 78 Hon'bIe IT AT Indore bench in case of Shri Girish Kumar Sharda Vs. ACIT -1(1), Indore (order dtd 28.10.2013 ) and many others. (See page no. 204 to 227 of the paper book) In view of above order dtd. 02.11.2017 passed by the HonAble CIT(A) may be sustained. 7. Per contra Ld. Departmental Representative(DR) vehemently argued and supported the order of Ld. A.O. 8. We have heard rival contentions and perused the records placed before us and carefully gone through the decision referred and relied by the Ld. Counsel for the assessee. 9. Apropos to Ground no.1; We observe that during the course of assessment proceedings while examining the purchase and sales of gold, quantitative details were referred at two places, except the quantity details of rate and vendor were missing in the Item Movement Analysis sheet dated 15.04.2011 & 12.10.2011 which were submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chourasia submitted that there was some mistake in the computer generated stock statement and the same has been taken by the AO. The AO is not justified in making the addition only on the basis that some wrong document has been filed during the course of assessment proceedings without supporting documentary evidences. The appellant was maintaining books of account. The books of account have been audited by the CA u/s.44AB of the LT. Act. The AO has not pointed out any defect in the books of account. Therefore, there is no reason in presuming that appellant has made the excess 'Sale than purchase. All the purchases have been accounted in the books of account. The AO failed to establish the unaccounted purchases made by the appellant. The Charted Accountant who has audited the books of account submitted during the course of remand proceeding that no discrepancy with regard to the stock noticed. To deliver natural justice in the assessment proceedings, real Income is to be assessed. In view of the above facts and circumstances, there is no doubt appellant did not submitted correct stock movement analysis statement with the Assessing Officer in completion of assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of item movement analysis sheet of two particular dates and made the addition without resorting to any other investigation and rejecting books of accounts. Ld. Assessing Officer has accepted the authentication of audited financial statements. If there has been a short fall of stock-in-hand on particular dates when the goods were sold, then they should have been on effect on the annual quantitative details but in the instant case the annual quantitative details do not sure any such situation of negative stock. Complete quantitative details for the year have been examined by the auditor and purchase and sales bills were available for the examination of the assessing officer. 13. In these facts and circumstances the assessee certainly deserves the benefit of doubt as the assessing officer has not conducted complete enquiry and rather has accepted the financial results including that of quantity of gold purchase and sales. It is also brought to our notice that during the appellate proceedings before the Ld. CIT(A) remand report was called for from the assessing officer and during the remand proceedings the corrected stock movement analysis statement was placed for verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 of the Act at Rs. 65,42,060/-. 17. During the proceedings before the Ld. CIT(A), assessee requested to file additional evidences under Rule 46A of the I.T. Rules, and permission was granted. Assessee filed the confirmation letter, computation of income, bank statements, PAN No. These details were forwarded to the assessing officer. During the remand proceedings Ld. Assessing Officer called all the 13 cash creditors to appear before him and explain the loan/credit given to the assessee. Out of 13 cash creditors, 10 cash creditors appeared in persona. Out of these 10 cash creditors six of them categorically accepted the amount given by them to the assessee during the year and also explained about the mismatch of certain entries. The remaining (4 out of 10 cash creditors) submitted that the loans given to the assessee are old and no fresh loan was given during the year. 18. Now as far as the remaining three cash creditors who did not appear before assessing officer they were Ashya Pratap Soni, Komal Bai Dhammani & Sandeep Gupta who gave loan of Rs. 1,12,450/-, Rs. 1,12,450/- & Rs. 3,20,295/- during the year. Confirmation of account, bank statement and bank details were duly filed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the three conditions required for genuineness of the transaction. The same view has been upheld by Hon'ble IT AT in the following cases.- i. Umesh Electricals vis Asst. CIT(20 11) 18 ITJ635 (Trib.Agra): (2011)131 ITD 127 :(2011) 141TTJ Establishment of identity and credit-worthiness proved. Assessee produced the bank account of creditor in his bank account on the same day on which loan was given - Assessee furnished the cash flow statement of creditor - Based on inquiry, AO noted that creditor was engaged in providing accommodation entries-HELD- In group cases, it has been held that there was no evidence against the creditor to prove that he was providing accommoda1ion entries-Further, mere deposit of money by the creditor on the same day, does not establish that the loan is not genuine-Assessee has proved the source of credit and also the source of source -Addition cannot be made. ii. Aseem Singh vs. Asst. CIT (2012) 19 IT J 52 (Trib. Indore) Identity and credit-worthiness proved-Assessee took loan of Rs. 1,,OO,OOO/- confirmation of creditor was filed-Lower authorities made addition u/s 68 holding that amount was deposited in cash in the bank account of lender immediate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scharged and then the burden shifts on the Revenue to show that what is stated or explained by the assessee is not satisfactory. No material whatsoever, has been brought on record by the ld. Assessing Officer to show that what was explained by the assessee, was not a correct state of affairs. If any sum is found credited in the accounts of the creditors then the creditors may be examined so as to explain the credit so far as the source of deposit in the account of the assessee is concerned. The assessee can be considered to have explained by bringing the material on record in the shape of confirmations, bank account and income tax numbers of that person. Thus the assessee had filed ample evidence to discharge the burden cast upon him and the ld. Assessing Officer has not brought any material on record to show that the explanation filed by the assessee, was in any manner, unsatisfactory consequent thereto the evidence filed by the assessee remain unrebutted." 21. In the light of above decision we observe that if the assessee filed ample evidences to discharge the burden carted upon him and the assessing officer fails to bring any material on record to show that explanation filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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