2012 (11) TMI 66

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....IT(A)-IV, Surat has erred in deleting the addition of Rs.32,60,000/- made on account of unexplained cash credit u/s.68 of the Act. 2.1. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) of the I.T.Act dated 26.12.2008 were that the assesse firm is in the business of trading in spare parts of vehicle and also running a service station for vehicles. It was noted by the AO that the assessee had received unsecured loans from the following persons and furnished partial evidence about their identity, creditworthiness and genuineness of the transaction, as follows:- Sr.No. Name of the Parties Amount Remarks 1. M/s. Jamna Organisers 25,00,000 1. Signed Confirmation filed but without stamp....

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....t denied of it and the same is mentioned in the assessment order itself. On the basis of recent decision in CIT v. Kulwant Industries [2009] ITR 377 (P&H) wherein the addition on the basis of cash credit was deleted after genuineness was proved. It is evident from the basic ingredients of money advanced by the creditor if genuineness, source, capacity and identity was proved by the appellant firm. Therefore I allow this ground and direct the Assessing Officer to delete Rs.32,60,000/- being unsecured loans made u/s.68 of the I.T.Act." 4. We have heard both the sides. The assessee has explained that Ms. Sharmistha B. Naik was a partner in M/s.Jamna Organizers having a capital of Rs.35,40,000/- and advanced a loan of Rs.3,80,000/-. She h....