TMI Blog2020 (11) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... ited in the books of account of the assessee is coming under the purview of Section 68. The explanation offered by the assessee that the bank account and the capacity of the creditor who have given the loan amount was proved through ITR details of the said parties along with bank statements and confirmations which clearly shows the proper balance in their respective bank accounts and their capacity to loan the amount to any other party as well. Thus, all these factor were ignored by the CIT(A) as well as the AO - CIT (A) was not right in dismissing the plea of the assessee and sustaining the addition. Hence, appeal of the assessee is allowed. - I.T.A. No. 5936/DEL/2017 - - - Dated:- 6-11-2020 - SHRI G. S. PANNU, VICE PRESIDENT AND MS SU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly appeared before the learned AO and the finding that Smt. Manju Sahu did not appear is factually incorrect as AO internally not recorded ; v. Once it is undisputed that unsecured loan has been received through the respective bank account of the directors, merely because, sum is credited in the bank account of directors immediately before the issue of cheque to the appellant is not a ground to hold that sum received is unaccounted income of the appellant as appellant is not required to prove the source of source. vi. No adverse material has been brought on record to even remotely suggest that sum deposited in the bank account of the creditors has came from the coffers of the appellant. vii. That merely because the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 5. The Ld. AR submitted that before the Assessing Officer complete books of accounts of the assessee was furnished and at that time no defects whatsoever was pointed out by the Assessing Officer in regular books of account maintained by the assessee. In-fact there is no whisper in the assessment order that the assessee has any sale outside its books of account or there is any unaccounted sale. The Ld. AR further submitted that in such circumstances, the finding that unsecured loans received by the assessee from its Directors is wholly erroneous and based purely on suspicious, surmises and conjuctures. In-fact, the assessee has given complete documentary evidence thereby establishing that sum was received from Smt. Manju Sahu and Sh. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an from their bank account, no addition can be made in the hands of the assessee and if the Assessing Officer was not satisfied about the source of sum paid to the assessee then he could have examined such sums in their hand by reopening their assessment. As can be seen from the documents relating to Smt. Manju Sahu it is evident that the balance as on 8/10/2011 was ₹ 25,20,000/- out of which money was given to the assessee as unsecured loan in two installments as below. One ₹ 4 lacs on 31/10/2011 through RTGS and ₹ 20, 40,000/- on 4/11/2011 through RTGS. As regards to the Assessing Officer s observation that cash was deposited before transferring money to the assessee of ₹ 4 lacs on 29/10/2011 and ₹ 6 lacs on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer and the CIT(A). 7. We have heard both the parties and perused the material available on record. In respect of the loans taken from the Directors of the Company, the assessee has submitted the relevant documentary evidences to establish the genuineness, creditworthiness and capacity of these loanee. Section 68 is applicable in the case where the assessee offers no explanation about the nature and source therewith or the explanation offered by him is not in the opinion of the Assessing Officer satisfactory in respect of the sum so credited which may be charged to income tax. But in the present case, the Assessing Officer failed to record his opinion and satisfaction as to why the sum credited in the books of account of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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