2012 (5) TMI 186

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....ssed by the Commissioner of Income Tax (Appeals). 2. Being dissatisfied, the Revenue has come up with the present Appeal. 3. The only question that arise for determination in this Appeal is, whether the Tribunal below committed substantial error of law in confirming the decision of the Commissioner of Income Tax (Appeals), by which the said appellate authority deleted addition of Rs.15 lac made on account of alleged unexplained income under Section 68 of the Income Tax Act by the Assessing Officer. 4. The following facts are not in dispute : The assessee is an individual and is engaged in the business of trading of iron scrap. In the Accounting Year in question, the assessee claimed to have taken the following loans : (1)  Smt. Ma....

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....e assessee but the father of Mital J. Shah & Vaibhav J. Shah and the husband of Manjula Shah knows the assessee. 8. The Assessing Officer issued a show-cause notice, which was replied by the assessee stating that the assessee had produced confirmation letters of the lenders who are assessed to tax and had given their passbooks and it was also stated that they had received loan from M/s. Vaibhav Enterprises and the source of money deposited by them is a loan from M/s. Vaibhav Enterprises. He further stated that as all those persons, the lenders as well as the persons who had deposited the money in his bank account and issued cheques in favour of the assessee are all assessed to income tax, therefore, the assessee cannot be asked to prove th....

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....ter hearing Mrs. Bhatt, the learned advocate appearing on behalf of the appellant and after going through the materials on record, we are unable to accept her contention that in this case the Revenue has discharged its onus and it was for the assessee to further prove the genuineness and creditworthiness of the creditors. 15. In our view, once the assessee has established that he has taken money by way of accounts payee cheques from the lenders who are all income tax assessees whose PAN have been disclosed, the initial burden under Section 68 of the Act was discharged. It further appears that the assessee had also produced confirmation letters given by those lenders. 16. Once the Assessing Officer gets hold of the PAN of the lenders, it w....