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TMI Blog2023 (10) TMI 1473X X X X Extracts X X X X X X X X Extracts X X X X ..... ve said issue are discussed in brief. The assessee is an individual and is a partner in M/s Surface Road Construction. She had taken a loan of Rs. 25.00 lakhs from a company named M/s Delight Diam P Ltd. The revenue carried out enquiry in the case of above said company, which was carrying on diamond business. In the statement taken from one of the directors named Shri Deepak Kailash Babel u/s 131 of the Act, he had admitted that the entire sale of diamonds represented accommodation entries. He also admitted that the loans given by the company to various persons is also bogus. It was noticed by the AO that the assessee had taken loan of Rs. 25.00 lakhs from the above said company. On the basis of statement given by Shri Deepak Babe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n his shoulders of the assessee u/s 68 of the Act, i.e., the assessee is required to prove three main ingredients, viz., the identity of the creditor, the genuineness of the transactions and the credit worthiness of the creditor. If the assessee discharges the initial burden, then the burden would shift to the shoulders of the assessing officer, i.e., it is the responsibility of the AO to disprove the claim of the assessee by bringing evidences on record. 5. We shall now examine the facts prevailing in the instant case. It is noticed that it is not the case of the AO that the assessee did not discharge the initial burden placed upon it with regard to the loan received by it. We notice that the AO has initiated the reassessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has discharged the initial burden placed upon it.
7. Accordingly, in the facts and circumstances of the present case, we are of the view that the AO was not justified in disbelieving loan amount of Rs. 25.00 lakhs received by the assessee from M/s Delight Diam P Ltd and assessing the same as income of the assessee u/s 68 of the Act. For the same reasons, the Ld CIT (A) was not justified in confirming the assessment. For the reasons discussed above, we set aside the order passed by Ld CIT (A) and direct the AO to delete the addition of Rs. 25.00 lakhs made u/s 68 of the Act.
8. In the result, the appeal filed by the assessee is allowed.
Pronounced in the open court on 25/10/2023. X X X X Extracts X X X X X X X X Extracts X X X X
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