2013 (4) TMI 94

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....der the facts and circumstances of the case, the Ld. ITAT was justified in giving two contradictory findings in respect of two creditors having same set of facts whereas credit in the case of Sh. Charan Singh should have also been upheld as genuine as held by CIT(A) whereas findings of the learned Tribunal are contradictory to the recent judgment of this Hon'ble High Court in the case of CIT Vs. M/S Amar Chand and sons, ITA No. 243 of 2011 decided on 25.11.2011, Annexure A-4? B. Whether the order of the Tribunal on the above said two grounds of this appeal is perverse and against the provisions of law? 2. Briefly stated, the facts as narrated in the appeal are that the assessee filed return of income for the assessment year 2006-07 declar....

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....ot produced. Further, no evidence of agricultural operation being done by Shri Charan Singh had been brought on record. The Tribunal on appreciation of evidence, thus, had come to the conclusion that the loan shown by the appellant was not genuine. The Tribunal recorded as under:- "5. We have carefully perused the rival submissions, facts of the case and the relevant Paper Book including the findings of the AO as well as that of the CIT(A). The ld. CIT(A), has deleted the addition of Rs.42,90,000/- on account of unexplained loans received from two persons namely Mrs. Sukhwinder Kaur, W/o Shri Jagjeet Singh and Shri Charan Singh, S/o Shri Sohan Singh, both resident of House No. 1127 Sector 44-B, Chandigarh. It was contended by the Revenue t....

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....requisite evidence to prove the capacity of Shri Charan Singh, by way of cogent and corroborative evidence and genuineness of the transaction has not been established. In view of this, the decisions of the Hon'ble Supreme Court in the case of Srilekha Banerjee v. CIT, 49 ITR 112, CIT v. Durga Parsad More 82 ITR 540 and Sumati Dayal v. CIT, 214 ITR 801 are applicable. The Supreme Court in the case of CIT, West Bengal-II V. Durga Prasad More 82 ITR 540 (supra) has stated that it is true that the apparent must be considered real until it is shown that there are reasons to disbelieve and the taxing authorities are entitled to look into the surrounding circumstances to find out the matter has to be considered by applying the test of human probab....