TMI Blog2013 (8) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... n non-connection with this company than how the payments were made to Govt. Department like Mining Department, Excise Commissioner etc. under his sign and signature. 3. Deleting the addition of ₹ 2,96,583/- on account of interest income accruing from these Benami Account in view of the facts narrated in ground No.3 above. 4. Deleting the addition of ₹ 75,000/- on account of unexplained amount deposited in bank. 2. We have heard rival submissions and have carefully perused the entire records. The facts apropos ground No. (1) are that the assessee is engaged in the business of collection of Toll Tax, Sales Tax and Royalty as per the contract(s) exempted with the Government Departments. He also derived income from interest and remuneration from a partnership firm named M/s. Devganga Enterprises. He also derived interest from the Bank deposits. During F.Y. 2004-05, the assessee has claimed a liability of TDS amount of ₹ 53,562/- on interest paid. It was found that an amount of ₹ 5,24,912/- was paid as interest on unsecured loan to various parties after deducting TDS u/s 194A of the Act. However, this amount was not deposited in the Central Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held that the beneficial ownership of the above account lay with the assessee, the assessee was asked to explain as to why the above amount of ₹ 6,00,000 be not added to the total income of the assessee. The assessee was also required to explain the source of the credit entries in account N0.1004287 of M/s. Sarjan Housing finance development Ltd maintained in The Bank of Rajasthan Ltd., Udaipur. While calling for the explanation as mentioned above, it was also brought to the notice of the assessee that in the assessment for the assessment year 2004-05, it was deduced by the then A.0. that the above accounts in SBBJ and the Bank of Rajasthan in the name of M/s. Sarjan Housing Finance Development Ltd were benami and beneficial ownership was with the assessee and not with M/s Sarjan Housing Finance Development Ltd Therefore, the assessee was asked to explain the identity and genuineness of various amounts being credited to the account of M/s.Sarjan Housing Finance Development Ltd in Bank of Rajasthan Ltd and SBBJ, Udaipur in the assessment year 2005- 06. It was also brought to the notice of the assessee that incase of failure to give satisfactory explanation, addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the facts. In response to above queries, it was submitted that the assessee had never been a director of M/s. Sarjan Housing Finance Development Ltd. To the question of assessee not being the director of M/s. Sarjan Housing Finance Development Ltd then how was it possible for the assessee to open and operate account in the name of M/s. Sarjan Housing Finance development Ltd. The A.O. was of the view that the assessee could not give a convincing reply and the explanation given was the same as stated in the past which does not clear the position of the assessee on this issue and in fact makes his position even more dubious. The assessee did not furnish the complete address of Shri Daya Ram and S. Ranawat and stated that the assessee has no concern with the company and therefore not possible to furnish the information. The above activities clear indicate that the assessee do not want to disclose the correct true picture. Further, from the findings /information gathered during the course of assessment proceedings for the assessment year 2004-05 on the same issue was conclusively proved that the beneficial ownership of the above account in SBBJ and The Bank of Rajasthan Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been affirmed by Appellate Tribunal. The Appellate Tribunal has held thus :- 15. After cogitating rival submissions in the light of the obtaining facts of this case, vis-a-vis the other evidence available on record, we are of the considered opinion that the ld. CIT(A) has correctly deleted the impugned additions. We are in agreement with the ld. A.R s submission and the finding of the ld. CIT(A). The ld. D.R. except for harping on the statement of Gajendra Porwal, has not brought forth any valid point. We have already discussed and decided that the statement of Shri Porwal has so much evidentiary value. Therefore, we confirm this deletion. By respectfully, following the above Tribunal Order we cannot allow ground No. 2.1, 2.2 and 3 of revenue s appeal. They stand dismissed. 4 The facts apropos ground No. (4) are that the A.O. has added a sum of ₹ 75,000/- claimed to be out of a compensation amount received by the assessee from RICO on account of acquisition of a piece of his land. As per A.O. the assessee is unable to explain and relate the same to the alleged compensation, therefore, he has added a sum of ₹ 75,000/- in assessee s hands. 4.1 On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d his concealed income in form of cash credit. 1.6 Ignoring the fact that creditworthiness of other creditors namely Shri Daya Ram Nayak, Kesar Singh Ranawat, Kishore Kumar, Mahendra Singh Chundawat, Manohar Kunwar, Udaipur Singh Ranawat and Udaipur Singh Solanki is not established. 6. Through the above grounds only one issue relating to addition of ₹ 1,94,86,619/- added u/s 68 of the Act by the A.O. and reduced to ₹ 13,39,750/- by the ld. CIT(A), has been raised. The facts of this issue are that during the course of assessment proceedings for A.Y. 2006-07 it was noticed by the ld. A.O. that the assessee has shown new unsecured loans of Rs'1 ,28,32,430' The assessee was required to file confirmation alongwith copy of return and complete enclosures as well as bank statements in the case of the parties from whom new unsecured loans were acquired during the year. In response to this, the assessee furnished copy of account of the parties as appearing in the books of account of the assessee highlighting the amount of credit obtained from them which are as under: 1. Dayaram NaYak ₹ 14,06,735 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties alongwith the return of income and bank statement, the onus laid on the assessee by the provisions of the Act has been fully discharged. However, the ld. A.O. did not accept the submissions of the assessee as according to him mere furnishing of the above documents do not exonerates the assessee from the liability of proving the cash credits appearing in the books. In support of this, the A.0. has placed reliance on the decision of Kerala High Court in the case of ITO Vs. Diza Holdings (P) Ltd. (2002) 120 Taxman 539 (Kerala) where it has been held that the mere furnishing of particulars is not enough. the mere fact that the payment was made by way of account payee cheque is also not conclusive . Therefore the ld. assessing officer would be entitled to consider whether notwithstanding the fact that the payments were made by cheques, whether the assessee has satisfactorily explained the nature and source of the amounts found credited in the books of the assessee. Similarly the ld A.0. has also placed reliance in the case of CIT Vs, United commercial and Industrial company (P)Ltd (1991) 187 ITR 596 (cal.) where it has been held as under: 'Mere production of confirmato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayaram is ₹ 14,06,735. But there is no evidence in form of return of income to justify the creditworthiness of the lender. Further, as per the bank statement, there is only couple of transaction during the previous year relevant to the assessment year under consideration. Further, from the bank statement of the creditor, it was also seen by the A.O. that the dates on which the loan was received by the assessee from the creditor, similar amount was credited on the same date in the bank account of the creditor. Further, as per the statement recorded, the only source of income of the creditor is monthly salary income of ₹ 5000 and agricultural income of around 1.5 lacs per annum. When the creditor was confronted with the bank account through which the, loans were claimed to have been given to the assessee, it was stated by the creditor that he has no idea regarding the various transactions which had taken place through the said account and he has not advanced any loan to any one during the financial year relevant to the assessment year 2006-07. In view of above, it was held by the A.O. that the capacity of the lender to lend the money did not exists. In support of this, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (6) of the Act and it was found that an amount of ₹ 5 lakh was credited in the account of the creditor from the account N0.61000593299 of Shri Bhim Singh Chundawat maintained with the same bank . On being confronted this information, it was stated by Shri Mahendra singh that the amount of ₹ 5 lakhs credited in his bank account from the account of Shri Bhim Singh Chundawat was in fact the loan amount received back from Shri Bhim Singh which he advanced to him during the financial year 2005-06. However, the A.O. did not accept the submission as there was no entry of loan given to Shri Bhim Singh chundawat during the F.y. 2005-06 in both the bank account maintained with SBBJ and ICICI which he could have received back from the assessee as claimed. Hence, the credit claimed in the name of Shri Mahendra Singh Chundawat was treated as bogus. The A.O. also conducted enquiries under section 133(6) in the case of Pyar Kunwar and Sajjan Kunwar who have claimed to have advanced loan to the assessee. From the information collected u/s.133(6), it was noticed bytheA,0. that a sum of ₹ 1,68,000 was credited in the bank account of Mrs. Payar Kunwar mainained with SBBJ, Udaipur th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of income shown in the return filed, Further, it was noticed by the A.0. that in most of the cases of the creditors, very limited transactions have been taken place throughout the year and the only transaction of substantial denomination is related to the amount being credited into the bank account of the above parties from which the loans were advanced to the assessee. The assessee did not produce all the creditors for verification. Therefore, the assessee failed to discharge his duties laid down on him. In support of the this, the A.O. has placed reliance on the decision of Honourable Kerala High Court in the case of Oceanic Products Exporting Co. V/s. CIT (2000) 241 ITR 497 (Ker.) where it has been held as under: After the enactment of section 68, the burden is placed on the assessee to prove a credit appearing in its books of account. That burden has to be discharged with positive material. When it is contended that a person has advanced money or had given a loan, it has to be established that the person was of a man of straw and had the capacity to give the money. A conclusion regarding creditworthiness or otherwise is essentially one of the fact. It does not give ris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,00,000/- respectively directly payable to Mining Engineer Sirohi on behalf of the appellant against the above agreements. 3.7. The appellant has duly accounted for the above loan in the name of the lender in his books of accounts. The appellant has also credited the interest of ₹ 6,735/ in the name of the lender in his books of accounts. 3.8. The appellant has made the repayment of ₹ 10,00,000/-to the lender against the above loan. 3.9. The assessing officer has made the addition of ₹ 14,06,735/- doubting the creditworthiness of the lender and genuineness of the loan transaction. 3.10. To prove the identity and creditworthiness of the lender and genuineness of the loan transaction, the appellant files the following documents: i. Letter of confirmation of the loan ii. Bank statement iii. Copy of the PAN card having number AGZPN 6290 N 3.11. The appellant submits that the lender was having income from salary and agriculture income. Since his total income was below the taxable limit and, therefore he has not filed the return of income during this year. 3.12.The lender received the income from salary of ₹ 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of the assessment. Our submissions are well supported by the following judicial decisions: Pullangoda Rubber Produce Company Ltd. Vs State of Kerala (1973) 91 ITR 18 (S.C.) 3.26. The assessing officer has not placed any corroborating evidence in support of the statements of the lender; therefore, the statements of the lender cannot be relied upon for the purpose of the assessment. 3.27. It is further submitted that the statement of the lender have been recorded behind the back of the appellant without giving him any opportunity to cross-examine the witness, which is against the principles of natural justice and cannot be used in the assessment against the appellant. 3.28. For the reasons stated above the statement of the lender cannot be relied upon for the purpose of assessment. 3.29. In this case the appellant has completely discharged his primary burden of onus cast upon him and the now the burden of onus shifted upon the assessing officer to prove that the loan given to the appellant by the lender is bogus. 3.30. The assessing officer has not brought on record any cogent and worthwhile material to prove that the above cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the identity of the lender. The Bank accounts of the lender further shows that the lender was having creditworthiness to advance the loan to the appellant. The loan has been advanced to the appellant through banking channel and the genuineness of the loan cannot be doubted 4.10. The assessing officer has also recorded dated 22-12-2008 the statement of the lender under section 131 of the Act (copy enclosed). 4.11. !n reply to question 9 of his recorded statement, the lender has stated that he has not given any loan to the appellant during the year under consideration. 4.12 Whereas he categorically confirmed in his confirmation that he has given the loan to the proprietorship concern of the appellant (copy of the confirmation has already enclosed). Thus the veracity and authenticity of the statement of the lender cannot be relied upon for the purpose of assessment. 4.13. It is settled position of law that the statements made by the assessee under oath are not the conclusive evidence unless they are further supported by any other corroborating or tangible evidence. The incorrect statements do not form the basis of the assessment. Our submissions are well supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his business. 5.4. The appellant has duly accounted for the above loan in the name of the lender in his books of accounts. The appellant has also credited the interest of ₹ 33,044/- in the name of the lender in his books of accounts. 5.5. The appellant has made the repayment of ₹ 19,62,460/-to the lender through demand drafts during the year under appeal. 5.6. The assessing officer has made the addition of ₹ 78,45,504/- doubting the creditworthiness of the lender and genuineness of the loan transaction. 5.7. To prove the identity and creditworthiness of the lender and genuineness of the loan transaction, the appellant files the following documents: i. Letter of confirmation of the loan ii. Bank statement iii. Income tax return for the assessment year 2004-05 to 2006-07 having Permanent account number ABBPC 5409 K. 5.8. The confirmation and bank statement and income tax return proves the identity of the lender. 5.9. The Bank accounts of the lender shows that the lender was having the adequate funds in his bank accounts on the dates on which he has advanced the loan to the appellant. 5.10. Thus the conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the loan ii. Bank statement iii. income tax return for the assessment year 2004-05 to 2006-07 6.8. The Bank accounts of the lender further shows that the lender was having the adequate funds with him on the various dates to advance the loan to the appellant. The loan has been advanced through banking channel and its genuineness of the loan cannot be doubted. 6.9. In this case, the appellant has completely discharged the primary burden of onus cast upon him and now the burden of onus shifted upon the assessing officer to prove that the loan given by lender to the appellant is bogus. 6.10. The assessing officer has not brought on record any cogent and worthwhile material and concrete and tangible evidence to prove that the cash credit appearing in the books of the appellant in name of the above lender is bogus and not real. 6.11. The assessing officer has miserably failed to prove that the above loan creditor appearing in the books of the appellant is bogus and not real. Therefore, the addition of unexplained cash credit of ₹ 15,10,755/-in the hands of the appellant is liable to be deleted. 6.12. In view of the foregoing fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he has not recollect about the loan to the appellant during the year under consideration, However he has stated that he was having source of income from salary, agriculture income and money received from sale of house. 7.12. In reply to question 3 of the statement he has also stated that his son is also employed in private school at the salary of ₹ 6,500/- per month. 7.13. It is settled position of law that the statements made by the assessee under oath are not the conclusive evidence unless they are further supported by any corroborating or tangible evidence. The incorrect statements do not form the basis of the assessment. Our submissions are well supported by the following judicial decisions: Pullangoda Rubber Produce Company Ltd. Vs State of Kerala (1975) 91 ITR 18 (S,C.) 7.14. In this case the assessing officer has not placed any corroborating and tangible evidence to substantiate the statements of the lender, therefore, the statement of the lender cannot be relied upon for the purpose of assessment. 7.15. It is further submitted that the statements of the lender have been recorded behind the back of the appellant without giving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 31-03-2006 drawn on Union Bank of India. 8.7. The assessing officer has made the addition of ₹ 9,27,964/- (correct figures are ₹ 9,27,364/-) doubting the creditworthiness of the lender and genuineness of the loan transactions. 8.8. To prove the identity and creditworthiness of the lender and genuineness of the loan transaction, the appellant place on record the following documents: i. Letter of confirmation of the loan ii. Bank statement 8.9. It is very respectfully submitted that the Letter of confirmation of the loan and bank statement clearly proves the identity of the lender. 8. 10. The Bank accounts of the lender further shows that the lender was having the adequate funds with him to advance the loan to the appellant. The loan has been advanced through banking channel and its genuineness of the loan cannot be doubted. 8.11. Thus the above documents clearly prove the identity and creditworthiness of the lender and genuineness of the loan given to the appellant and the addition of unsecured loan made by the assessing officer is liable to be deleted. 8.12. In this case the assessing officer has not placed any corrobor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an transaction, the appellant placed on record the following documents: i. Letter of confirmation of the loan ii. Bank statement iii. income tax TDS certificate the assessment year 2006-07 having PAN number ABSPC 854O J 9.6. The assessing officer has made the addition of ₹ 4,06,188/- on the ground that the appellant has not furnished the return of income and bank account of the lender. 9.7. It is very respectfully submitted that the above documents clearly proves the identity of the lender. 9.8. The Bank accounts of the lender further shows that the lender was having the adequate funds with him to advance the loan to the appellant. 9.9. The loan has been advanced through banking channel and its genuineness of the loan cannot be doubted. 9.10. The assessing officer has also recorded dated 24-12-2008 the statement of the lender under section 131 of the Act. 9.11. In reply to question 5 of his recorded statement, the lender has clearly stated that he has given a loan of ₹ 4,00,000/- to the appellant out of his salary, accumulated savings of the 23 years in Government Department during the year under consideration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken the loan on 07-01-2006 of ₹ 14,25,000/-on the terms deposits from the said bank. 10.3. she advanced the loan of ₹ 9,00,000/- to the appellant making direct payment by demand draft to the Mining Engineer Sirohi on behalf of the appellant. 10.4.The appellant has duly accounted for the above loan in the name of the lender in his books of accounts. The appellant has also credited the interest of ₹ 15,153/- in the name of the lender in his books of accounts. 10.5. The assessing officer has made the addition of ₹ 9,15,153/- doubting the creditworthiness of the lender and genuineness of the loan transaction. 10.6 To prove the identity and creditworthiness of the lender and genuineness of the loan transaction, the appellant place on record the following documents: i. Letter of confirmation of the loan ii. Bank statement 10.7. It is very respectfully submitted that the Letter of confirmation of the loan and Bank statement above documents clearly proves the identity of the lender. 10.8. The Bank accounts of the lender further shows that the tender was having the adequate funds with him to advance the loan to the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place on record the following documents: i. Letter of confirmation of the loan ii. Bank statement 11.7. It is very respectfully submitted that the above documents clearly proves the identity of the lender. 11.8. The Bank accounts of the tender further shows that the lender was having the adequate funds with him to advance the loan to the appellant. The loan has been advanced through banking channel and its genuineness of the loan cannot be doubted. 11.9. In this case, the appellant has completely discharged the primary burden of onus cast upon him and now the burden of onus shifted upon the assessing officer to prove that the loan given by lender to the appellant is bogus. 11.10. The assessing officer has not brought on record any cogent and worthwhile material and concrete and tangible evidence to prove that the cash credit appearing in the books of the appellant in name of the above lender is bogus and not real. 11.11 The assessing officer has miserably failed to prove that the above loan creditor appearing in the books of the appellant is bogus and not real. Therefore, the addition of unexplained cash credit of ₹ 9,15,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with him to advance the loan to the appellant. The loan has been advanced through banking channel and its genuineness of the roan cannot be doubted. 12.10. In this case, the appellant has completely discharged the primary burden of onus cast upon him and now the burden of onus shifted upon the assessing officer to prove that the loan given by lender to the appellant is bogus. 12.11. The assessing officer has not brought on record any cogent and worthwhile material and concrete and tangible evidence to prove that the cash credit. appearing in the books of the appellant in name of the above tender is 'bogus and not real. 12.12 .The assessing officer has miserably failed to prove that the above loan creditor appearing in the books of the appellant is bogus and not real. Therefore, the addition of unexplained cash credit of ₹ 1,70,388/- in the hands of the appellant are liable to be deleted. 12.13. Thus the above documents clearly prove the identity and creditworthiness of the tender and genuineness of the loan given to the appellant and the addition of- unsecured loan made by the assessing officer is liable to be deleted. 12.14. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not real. Therefore, the addition of unexplained cash credit of ₹ 3,55,892/-in the hands of the appellant are liable to be deleted. 13.12. Thus the above documents clearly prove the identity and creditworthiness of the lender and genuineness of the loan given to the appellant and the addition on unsecured loan made by the assessing officer is liable to be deleted. 13.13. In view of the foregoing fact the addition of loan of ₹ 3,55,892/- made by the assessing officer is liable to be deleted. M/S Shiva Wines Tools (Pvt.) Ltd. : ₹ 23,00,000/- 14.1. The appellant has advanced a loan of ₹ 10,00,000/, to M/s Shiva Wines Tools (Pvt.) Ltd 14.2.M/s Shiva wines Tools (pvt.) Ltd has returned back the above loan ₹ 10,00,000 dated 06/03/2006 vide account payee cheque no. 170867 dated 06-03-2006. 14.3. M/s Shiva wines Tools (Pvt.) Ltd advanced a fresh loan of ₹ 13,00,000/- on dated o1-02-2006 to the appellant vide account payee cheques no. 124778 dated 01-02-2006 drawn..on Karnataka Bank. 14.4. The appellant has duly accounted for the above loan in the name of the lender in his books of accounts. 14. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ft of earnest money of ₹ 9,50,000/- on dated 12-01-2006 to him. 15.3. Thereafter, he has advanced the loan of ₹ 9,50,000/- to the appellant vide account payee cheque bearing no. 346624 dated 14-01- 2006 drawn on SBBJ, SSI, branch, Udaipur. 15.4. The appellant has duly accounted for the above loan in the name of the lender in his books of accounts. The appellant has also credited the interest of ₹ 15,993/- in the name of the lender in his books of accounts. 15.5. The assessing officer has made the addition of ₹ 9,65,993/- on the ground that the appellant has not furnished the return of income and bank account of the lender 15.6. To prove the identity and creditworthiness of the lender and genuineness of the loan transaction, the appellant place on record the following documents: i. Letter of confirmation of the loan ii. Bank statement iii. Return of income for the assessment Year 2006-07 15.7. It is very respectfully submitted that the Letter of confirmation of the loan and the Bank statement clearly proves the identity of the lender. 15.8. The Bank accounts of the lender further shows that the lender was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmation of the loan ii. Bank statement iii. Return of income for the assessment year 2006-07 16.7. It is very respectfully submitted that the above clearly proves the identity of the lender. 16.8. The Bank accounts of the lender further shows that the lender was having the adequate funds with him to advance the loan to the appellant. The loan has been advanced through banking channel and its genuineness of the loan cannot be doubted. 16.9. In this case, the appellant has completely discharged the primary burden of onus cast upon him and now the burden of onus shifted upon the assessing officer to prove that the loan given by lender to the appellant is bogus. 16.10. The assessing officer has not brought on record any cogent and worthwhile material and concrete and tangible evidence to prove that the cash credit appearing in the books of the appellant in name of the above lender is bogus and not real. 16.11. The assessing officer has miserably failed to prove that the above loan creditor appearing in the books of the appellant is bogus and not real. Therefore, the addition of unexplained cash credit of ₹ 60,750/- in the hand of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfactorily explained their sources with the documentary evidences. 17.6. The appellant very humbly submits that he has satisfactorily explained their sources with the documentary evidences in respect of the above loan creditors. 17.7. However, the appellant has not prove the source of source or origin of origin in respect of the above loan creditors as the same is not required by the provisions of law. 17.8. It is settled principle of law that the appellant is not required to prove the source of source or origin of origin . Our reliance has been placed on the following judicial decisions for this purposes: S. Hastimal Vs. CIT (1963) 49 ITR 273 (Mad. ) Daulat Ram Rawatmull (1973 ) 87 ITR 349 (SC) Sarogi Credit Corpn. (1976 ) 103 ITR 344 ShriSurindra Singh (1993) 113 Taxation 11 (JpAT) Tolaram Daga Vs. CIT (1966) 59 ITR 632 (Assam) 17.9. The assessing officer has further observed that the various and outcome of the investigation conducted reveals that the loans received by the appellant in fact bogus in nature and actually belongs to the appellant himself which were routed through the above parties. 17.10. The appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed above the appellant states that the addition of cash credits of ₹ 1,04,86,619/-made by the assessing officer is arbitrary, fictitious malafide and totally incorrect and erroneous and the same are liable to be deleted. 18.1. In view of the foregoing grounds of defence, the appellant very humbly prays to your honour to kindly : i. quash the assessment order dated 31-12-2008 as being ab-initio void, illegal and /or in operative. ii. quash the addition/disallowances of ₹ 1,04,86,619/- as being arbitrary, fictitious, illegal and ab-initio void. iii. pass such other order or orders as may be deemed fit and proper facts and circumstances of the case. During the appeal proceedings, the appellant vide his letter dated 06.10.2012 filed application under Rule 46A of the IT Rules,1962 enclosing therewith some evidence which has been claimed to be additional evidence as the same could not be furnished before the A.0. at the time of assessment proceedings for the reasons beyond the control of the appellant and it has been requested that the same may be admitted under subsection 4 and 5 of section 250 of the Act as all the evidences are relevant for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manohar Kunwar. 7. Kishore Garasiya 8. Shiva Wines Tools Pvt. Ld. 9. Udai Singh Ranawat. Thereafter, during the course of assessment proceedings, the assessee was vide the order sheet entry dated 15.09.2008, 20.11.2008, 27.11.2008, 12.12.2008, 19.12.2008, 22.12.2008, 24.12.2008, 26.12.2008, 29.12.2008 given further opportunities to submit the documents, evidences in support of the return of income filed by him. The assessment was completed on 31.12.2009 and though the assessee had been provided with more than 16 months to submit these evidences and documents, the assessee failed to do so and now the assessee has produced the same before your honour as additional evidences. Therefore, the claim of the assessee that reasonable opportunity was not provided during the course of assessment proceedings is far from the truth and contrary to the assessment records. It is also pertinent to note that during the course of assessment proceedings the assessee failed to produce all the depositors even though specifically requested by the A0 The assessee produced only some of the depositors whose statements were recorded during the course of assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to discharge the onus laid down upon him by virtue of the provisions of sec. 68 of the Act to prove the identity of the depositors, their credit worthiness and genuineness of the transactions. A copy of the above mentioned remand report was provided to the assessee to submit his explanation on the remand report. In response to this, the appellant has filed his reply vide letter dated 29.03.2011 which has been discussed with the appellant. 6.3 After considering the remand report the ld. CIT(A) discussed each and every cash creditor in para 2.3 page Nos. 49 to 60 of the impugned order and has found following creditors as genuine :- (i) Shri Dhanraj patel. (ii) Shri Gamer Singh (iii) Shri Himmat Singh (iv) M/s. Shiv Wine and Tools Pvt. Ltd. (v) Sh. Daya Ram Nayak. (vi) Shri Kesar Singh Ranawat (vii) Shri Kishore Kuamr (viii) Shri Mahendra Singh (ix) Chri Chundawat (x) Shri Manohar Kumar (xi) Shri Udai Singh Ranawat (xii) Shri udai Singh Solanki. 6.4 Both parties have reiterated their earlier stand before us. The ld. D.R.s have argued that the creditworthiness of the above creditors have not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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