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TMI Blog2024 (6) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... TA No. 126/SRT/2020 for Assessment Year 2016-2017 by proposing the following questions of law: 'a) Whether the Tribunal was justified in upholding the deduction of addition caused on account of unexplained cash credit under section 68 of the Act amounting to Rs. 11,57,00,000/-? b) Whether the Tribunal was justified in upholding the deduction of addition under section 68 of the unexplained cash credit despite detailed inquiry revealing the non- existence of creditor?' 2. Brief facts giving rise to the present tax appeal can be stated as under: 3. The assessee is a company engaged in the business of trading of rough and polished diamonds and derived income from business during the period under consideration. The assessee company has sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in case of Ayachi Chandrashekhar Narsangaji TA 992 of 22013 datd. 02.12.2013 has held that 'It has also come on record that the said loan amount has been repaid by the assessee to 'IA' in the immediately next year and the Department had accepted the repayment of loan without probing into it. In the aforesaid facts and circumstances of the case, when the Tribunal has held that the matter is not required to be remanded as no other view would be possible, there was no reason to interfere with the impugned order passed by the Tribunals'. Further the Hon'ble ITAT Surat in case of Kalubhai A. Dhamelia ITA No. 88/SRT/2018 dtd. 18.09.2018 & in case of Damjibhai Varjibhai Gangani ITA 124/SRT/2018 dtd. 18.09.2018 have also taken a view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled following summary of impugned deposits and refunds; Sr. No. Details of payers Details of trade advance received Details of trade advance repaid Repayment within Name Date of receipt Amount received Date of payment Amount repaid 1 M/s. Anushul Gems Pvt Ltd. 20/08/2015 Rs. 31.00.000/- 21/08/2015 Rs. 31.00.000/- 2 M/s. Manhar Impex Pvt. Ltd. 07/07/2015 13/07/2015 Rs. 5,00,000/- Rs. 73,00,000/- 08/07/2015 14/07/2015 Rs. 5,00,000/- Rs. 73,00,000/- 1 day 3 M/s. Uttam Gems Pvt ltd. 07/07/2015 Rs. 50,00,000/- 08/07/2015 Rs. 50,00,000/- 1 day 4 M/s. Look At Me Retails Pvt. Ltd. 04/12/2015 Rs. 2,10,00,000/- 07/12/2015 10/12/2015 22/06/2015 Rs. 21,34,000/- Rs. 1,88,66,000/- 3-6 days ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, no amount was left at the end of financial year. It is also matter or record that the repayment is not doubted by the assessing officer. The Hon'ble Jurisdictional High Court in CIT Vs Ayachi Chandrashekhar Narsangji (2014) 42 taxmann.com 251(Gujrat) held that where Department has accepted repayment of loan in subsequent financial year, no addition was to be made in the current year on account of cash loan.' 7. Being aggrieved by the aforesaid, Revenue has approached this Court by way of present Tax Appeal. 8. Heard learned advocate Mr.Karan Sanghani for learned advocate Ms. Kalpana Raval for the appellant and learned advocate Mr. Tej Shah for the respondent. 9. Having considered the submissions advanced by learned advocates for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has furnished the copies of returns filed by the creditors with the Department along with their statement of income. All the loans were received by the assessee by account payee cheques and the repayments of loans have also been made by account payee cheques along with the interest in relation to those loans. It is rather strange that although the Assessing Officer has treated the cash credits as non- genuine, he has not made any addition on account of interest claimed/paid by the assessee in relation to those cash credits, which has been claimed as business expenditure and has been allowed by the Assessing Officer. It is also pertinent to note that in respect of some of the creditors the interest was credited to their accounts/paid to them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine in view of the principles laid down by the Supreme Court in the case of Orissa Corporation [1986] 159 ITR 78. In the said decision the Supreme Court has observed that when the assessee furnishes names and addresses of the alleged creditors and the GIR numbers, the burden shifts to the Department to establish the Revenue's case and in order to sustain the addition the Revenue has to pursue the enquiry and to establish the lack of creditworthiness and mere non- compliance of summons issued by the Assessing Officer under section 131, by the alleged creditors will not be sufficient to draw an adverse inference against the assessee. In the case of six creditors who appeared before the Assessing Officer and whose statements were recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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