TMI Blog2011 (9) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee relates to addition of ₹ 1 lakh on account of loan received from Shri Manish Jain. 3. Rival contentions have been heard and records perused. During the course of assessment, the AO added an amount of ₹ 1 lakh received from Shri Manish Jain Under Section 68 of the Act by observing that the Assessee has furnished confirmation from Shri Manish Jain, but failed to furnish copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm cannot ask the person who makes investment, where the money invested is properly taxed or not. If that person owns the entry then the burden of the Assessee firm is discharged. It is open to the AO to undertake further investigation with regard to that individual who has deposited the amount . Reliance was also placed on the decision of Hon'ble Rajasthan High Court in the case of Shri Barkh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the absence of proper enquiries, addition cannot be sustained. 5. On the other hand, the ld. Senior D.R. relied on the orders of the authorities below. 6. We have considered the rival contentions, carefully gone through the orders of the authorities below and found that the addition was made in respect of loan of ₹ 1 lakh received Shri Manish Jain for which Assessee filed copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue was issued was also placed before the lower authorities. Before issue of the cheques, there was sufficient credit balance in the account of the loan creditor. Thus, receiving loan by account payee cheques also establishes genuineness of the transaction and sufficiency of the Bank balance before issue of cheques establishes creditworthiness of the loan creditors. If the lower authorities have an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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