TMI Blog2022 (4) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... situation we would deem it proper to set aside this issue to the file of the A.O for deciding afresh after taking into consideration the additional evidences filed during the course of appellate proceedings before the ld. CIT(A). It is needless to say that observation made by us will not ensure or impair the case of A.O and will not cause any prejudice to the defense explanation of the assessee. Accordingly, this ground of appeal of the assessee is allowed for statistical purposes. Addition u/s 68 - cash deposit in the bank account of the assessee maintained with the Federal Bank Ltd.- HELD THAT:- We observe that ld. CIT(A) has not disproved the supporting evidences furnished by the assessee in support of his claim that aforesaid amount was withdrawn from overdraft bank account maintained with Modal Cooperative Bank ltd. before depositing the same in the bank account maintained with the Federal Bank ltd. Therefore, this ground of appeal of the assessee is allowed. Disallowance of interest - HELD THAT:- AO noticed that comparatively the assessee has paid interest to the one party M/s Kiran A Lund at abnormally higher rate of 24% whereas to the order parties the rate of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-on the alleged ground that the appellant had taken bogus loans without appreciating the fact that the A.R. of the appellant had submitted all the relevant documentary evidences before the AO such as loan confirmations, ITR and bank statements to prove identity, credit worthiness as well as genuineness of the transactions. However disregarding the same, the learned CIT (A) chose to confirm the addition of loans as unaccounted cash credits. 3. The learned CIT (A) further erred in confirming the additions of the Ld. AO for an amount of ₹ 4,50,000/- u/s 68 of The Income Tax Act,1961 on the alleged ground that the appellant has accepted cash in the form of unsecured loans without appreciating the facts that the source of cash deposit was from withdrawals made from the appellant's own Overdraft Account maintained with Model Co-Operative Bank. 4. The learned CIT (A) erred in confirming the disallowance made by the Ld. AO for interest on loan to the tune of ₹ 2,69,750/- paid to Mr. Kiran A Lund, on the ground that the said interest is inflated and the interest rate charged is higher than the rest of the loan creditors, without considering the circumstances a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15,76,000/- 6. Vinayak Developers 25,00,000/- Total 91,27,000/- Consequently, the assessing officer stated that assessee has failed to prove the genuineness of the transaction and creditworthiness of the loan creditors, therefore, the unsecured loan of ₹ 91,27,000/- was treated as unsecured cash credit within the meaning of Sec. 68 of the Act and added to the total income of the assessee. 3. The assessee has filed appeal before the ld. CIT(A). The assessee explained that required document in respect of the aforesaid parties could not be furnished before the assessing officer during the course of assessment proceeding due to paucity of time, therefore, the required document i.e copies of ITR and confirmation loan etc. were filed before the ld. CIT(A) as additional evidences. However, the ld. CIT(A) has dismissed the appeal of the assessee stating that assessee failed to establish the genuineness of unsecured loan during the assessment as well as appellate proceedings. 4. During the course of appellate proceedings before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bservation made by us will not ensure or impair the case of A.O and will not cause any prejudice to the defense explanation of the assessee. Accordingly, this ground of appeal of the assessee is allowed for statistical purposes. 3rd Ground: Addition of ₹ 4,50,000/- u/s 68 of the Act: 6. During the course of assessment on the perusal of bank statement the A.O noticed that there was a cash deposit of ₹ 4,50,000/- in the bank account of the assessee maintained with the Federal Bank Ltd. Vasai Road Branch and subsequently, the same amount was transferred to Bhavna Patel on the same day. Bhavna Patel was one of the creditors of the assessee, therefore, the assessing officer was of the view that the assessee had accepted cash in the form of unsecured loan, and the same was added to the total income of the assessee. 7. The assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 8. Heard both the side and perused the material on record. Without retreating the fact as elaborated supra in this order, the assessee specifically submitted before the ld. CIT(A) that the source of cash deposit was out of cash wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an were obtained as under: Sr. No. Name Loan Amount Interest paid Rate of interest 1. Kiran A Lund 25,00,000/- 6,00,000/- 24% 2. Naitik Enterprises 50,00,000 5,00,000/- 10% 3. Prabhakar Vijay Kelji 2,27,000/- 30,000/- 13.21% 4. Praful Vadilal Ajmera 30,00,000/- 3,15,000/- 10.5% The assessing officer noticed that comparatively the assessee has paid interest to the one party M/s Kiran A Lund at abnormally higher rate of 24% whereas to the order parties the rate of interest was almost of the said rate of interest. The ld. CIT(A) has dismissed the appeal of the assessee stating that no documentary evidences has been furnished by the assessee to justify the payment of interest at higher rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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