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TMI Blog2022 (4) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... d to as the 'Act'). The assessee in this appeal has taken the following grounds of appeal: "1. That, on the facts and in the circumstances of the case, the Ld. C.I.T.(A) erred in upholding the addition of Rs. 1,05,53,505/- u/s. 68 of the Act made in the guise of bogus loan creditors on the alleged ground that the identity and creditworthiness of the loan creditors and genuineness of the transactions could not be proved by the appellant in spite of the fact that party-wise details of loan refunded, description of transactions through bank and confirmations from the respective parties were filed. 2. That, the Ld. C.I.T.(A) further erred in upholding the addition of Rs. 9,32,000/- u/s.68 of the Act in the guise of unexplained cash deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the learned AO during assessment without affording an opportunity to the assessee to examine the Inspector's Report and the material gathered by the AO in the course of his enquiry u/s 142(2) of the Act, thus skipping the mandatory intermediary step prescribed u/s 142(3) of the Act and that being so additions made are bad in law and against the principles of natural justice." Grounds No. 1 to 3 : 3. The brief facts, relevant to the issue, are that during the course of assessment proceedings, the Assessing officer (AO) noted from the Bank Statement of the assessee, that a sum of Rs. 1,05,53,505/- was credited in the Bank A/c of the assessee from 15 different parties and further a cash sum of Rs. 9,32,000/- was also deposited. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... positioned at one of the layers, in the entire chain of conduits. The AO further observed that the key person standing at the helm of the events was Shiram Tibrewala, who had used the bank accounts of several individuals and entities for bogus routing the money for the purpose of earning commission. The Assessing Officer gave example of such circuitous transaction, one such was the credit of Rs. 3,85,000/- in the OBC bank account of the assessee on 11/09/2014. This credit of funds was from the OBC Brabourne Road Kol-1, Bank Account No. 00032010039670, being maintained by one Sanju Shukla. On the same date, Rs. 3,85,000/- was found to have been credited into the bank a/c of Sanju Shukla from the OBC Brabourne Road bank account A/c No.000320 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus loan credits of Rs. 9,32,000/- as unexplained cash deposits. The Assessing Officer also disallowed the claim of the interest of Rs. 1,43,190/- in respect of the loan transactions claimed by the assessee. 4. Being aggrieved by the said order of the Assessing Officer, the assessee preferred appeal before the ld. CIT(A) and reiterated its submissions. However, the learned CIT(A) did not appreciate the submissions filed by the assessee and affirmed the findings of the learned AO. Being aggrieved by the said order of the Ld. CIT(A), the assessee has come in appeal before us. 5. We have heard the rival contentions of both the parties and gone through the records. We find that the ld. CIT(A) in the impugned order has just reiterated the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source of the money credited into the account of the assessee. The only allegation now remains about the genuineness of the transactions. The allegation of the Assessing Officer is that the assessee is an intermediary to route unaccounted money from Shri Shriram Tibrewala to some other persons. Under such circumstances, when it is not the case of the Assessing Officer that the loan credits is the unaccounted income of the assessee, then the same cannot be added into the income of the assessee u/s 68 of the Act. On the other hand, the case of the assessee is that the assessee is primarily engaged in the business of advancing and taking loans/advances. The main income of the assessee is interest income from loans and advances given. Interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Bank and then the excess cash withdrawal was deposited in the Bank A/c of the assessee. Thus, the source of the cash deposits was out of the amount withdrawn from the Bank as and when needed and the excess cash withdrawal was re-deposited in the Bank A/c. 6. Neither Assessing Officer nor CIT(A) has given any findings relating to any defect or discrepancy in respect of the above explanation and evidences furnished by the assessee. The entire order of the Assessing Officer is based on certain enquiries conducted by Investigation Wing. When in his opinion the said money did not belong to the assessee then addition cannot be made in the hands of the assessee as his unexplained income. In view of this, we do not find justification on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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