TMI Blog2021 (4) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act on credit received from Rakesh Swadia therefore deserves to be reversed and cancelled. For another credit of ₹ 1 Lakh from Khemka Udyog, it is the case of the assessee that the relevant confirmation from the lender towards repayment of loan could not be furnished due to strained relations cropped up owing to some dispute. The assessee, however, adverted to the bank statement of the assessee to show that an amount of ₹ 51,070/- was promptly repaid on 30.08. 2012 against the credit received on 03. 08. 2012 which proves the bonafides of the credit received from Khemka Udyog. It is also fairly submitted that additions may, at best, be restricted to the balance amount remaining unpaid. Having regard to the fact of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of so called difference in balances. - I.T.A. Nos. 909 & 910/Ahd/2018 - - - Dated:- 19-4-2021 - Shri Pradip Kumar Kedia, Accountant Member And Shri Mahavir Prasad, Judicial Member For the Appellant : Astha Maniar, A.R. For the Respondent : Shri S. S. Shukla, Sr.DR ORDER PER PRADIP KUMAR KEDIA - AM: The captioned appeals have been filed at the instance of the assessee against the orders of the Commissioner of Income Tax (Appeals)-12, Ahmedabad ( CIT( A) in short), both dated 13.03.2018 arising in the assessment orders dated 22. 02.2016 07.12.2016; respectively, passed by the Assessing Officer ( AO) under s. 143( 3) of the Income Tax Act, 1961 (the Act) concerning AYs. 2013- 14 2014- 15. 2. Both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O and CIT(A) whereby the additions of ₹ 11,00,000/- made and confirmed by invoking provisions of Section 68 of the Act is under challenge. 8.1 It is submitted on behalf of the assessee that the assessee had taken a temporary loan of ₹ 8 Lakhs and ₹ 2 Lakhs aggregating ₹ 10, 00,000/- in the month of June 2012 from Shri Rakesh Vallabhbhai Swadia. The loan so obtained was also repaid in the month of September 2012 and therefore loan was ultimately squared off in the same year. It is the case of the assessee that all relevant details like; copy of confirmation obtained from lender, copy of return of income and relevant bank statements of the party was furnished before the lower authorities. The creditworthiness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter collecting the information in the event of any doubt, could have extended suitable enquiries if required instead of entering into arena of assumptions and presumptions. Except for a deposit of cash of ₹ 5 lakhs, there is no other cogent case made to draw the adverse inference against the assessee. The deposit of cash out of earlier withdrawal of large amount provides plausible explanation towards source of cash deposits in the absence of any enquiry in this regard by the Revenue from the lender. Needless to say, the borrower assessee could not be seen to have any perceptible control over the manner of carrying transactions by the lender. The repayment of loan exists as a strong mitigating circumstance and transcends all considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions on this score is therefore restricted to ₹ 48, 930/- and the remaining amount of addition of ₹ 51,070/- is reversed. 10. In the result, the appeal of the assessee for AY 2013-14 is partly allowed. ITA No. 910/Ahd/2018- AY- 2014- 15 11. The solitary issue arising from the order of the CIT( A) is addition of ₹ 11,36,454/- on account of reconciliation difference in the closing balance as per the books of account of the assessee and that of debtor M/s. PSL Ltd. 12. The AO noticed that under the head sundry debtors the assessee had inter alia shown receivables of ₹ 51, 08,925/- in the name of PSL Ltd. However, as per the letter submitted by Chartered Accountant firm (T R Chadha Co LLP) on be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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