2013 (6) TMI 422

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....ng the addition of Rs. 20,00,000/- as unexplained credit u/s 68 by merely relying on the bank pass book of the alleged creditor when the said creditor failed to prove that he was maintaining supportive books of accounts in order to prove genuineness of the credit of Rs. 20,000/-." 3. Briefly stated the facts of the case are that the assessee filed the return declaring the total loss of Rs. 7,48,177/-. Assessment was completed u/s 143(3) of the Act determining the total income of Rs. 12,51,820/-. AO made addition of Rs. 20 lacs u/s 68 of the Act. On appeal, in the first round, CIT (A) confirmed the same vide his order dated 12.2.2009. The matter travelled to the ITAT, wherein the Tribunal set aside the issue to the files of AO for examini....

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.... for failure to explain the cash deposit of Rs. 20 lacs in the hands of Mr. Haresh V. Malani constitutes case of examining the source of the deposits of Mr. Haresh V. Malani, which is not permitted in law. Accordingly, CIT (A) deleted the addition of Rs 20 lakhs. Aggrieved, Revenue is in appeal before the Tribunal with the above mentioned ground. 4. Before us, Ld DR for the Revenue stated that the assessee received a sum of Rs. 20 lacs from Mr. Haresh V. Malani vide Cheque No.885524 dated 3.4.2002 pertaining to The Cosmos Co.op Bank Ltd, Dadar (W). It is also mentioned that assessee paid Rs. 1.08 Cr to Mr. Haresh V. Malani vide Cheque No.818294 on 16.4.2001 of Vijaya Bank, Bandra Branch. Mentioning that the there is cash deposit of Rs 20....

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....re exists a sum of Rs. 20 lacs cash deposit on 8.3.2002 in the account held by Mr. Haresh V. Malani. As observed by the CIT (A), it is the case of throwing the onus on the assessee to explain the source of the sources. In this regard, he relied on the finding of the CIT (A) given in para 6.3 of the impugned order. 6. We have heard both the parties, perused the orders of the Revenue Authorities as well as the material placed before us. Prima facie, we find the order of the CIT (A) is quite elaborate one as it dealt with the statement recorded by the Revenue and Mr. Haresh V. Malani on 24.11.2010, dealt with identity of Mr. Haresh V. Malani. Undisputedly, CIT (A) has also addressed how Mr. Haresh V. Malani has liability of Rs 1.08 cr to pa....