TaxTMI 
TaxTMI 
2013 (7) TMI 475
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Rs. 90 lacs and Rs. 80 lacs treated by the A.O. as unexplained cash credit being loan taken by assessee from M/s Shreeji Corporation, Prop. Anil R Chordia HUF and M/s. Sumati Enterprises Prop. Yashwant L Jain HUF respectively." 2. On the facts and in the circumstances of the case and in law, the CIT(A) has erred in deleting the interest amount of Rs. 1,33,150/- and Rs. 1.36,110/- paid on loans from M/s Shreeji Corporation and M/s Sumati Enterprises respectively. 3. On the facts and in the circumstances of the case and in law, the CIT(A) erred in stating that the A.O. did not issue show cause notice to the assessee conveying his doubts in respect of loans." 3. Briefly stated relevant facts of the case are that the assessee is an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctors in Ferrous & Non-ferrous Metals. Regarding the PAN discrepancy, appearing in confirmation letter involving the cash credit by M/s. Shreeji Corporation vis-à-vis PAN appearing on the return of income, assessee explained that the discrepancy occurred in view of the error in providing PAN details of Shri Anil Rikabhchand Choradia, individual, instead of giving Anil Rikabhchand Choradia, HUF. If the same is considered, there is no discrepancy and therefore, the addition involving Sreeji Corporation is unwarranted. Similarly, regarding the discrepancy in the matters of jurisdiction involving M/s. Sumati Enterprises, the assessee mentioned that though the return of income was of M/s. Sumati Enterprises in Rajasthan, the PAN was issue....
X X X X Extracts X X X X
X X X X Extracts X X X X
....neously mentioned relates to the individual. Ld Counsel further mentioned that the loans amounting to Rs. 1.7 Crs, in question, are subsequently repaid. In this regard, Ld Counsel brought our attention to the paper book in respect of the repayment of the loans involving through banking channels. CIT (A) appreciated these facts as per the discussion given in para 4.5, 4.6 and 4.7 of the impugned order, before granting relief to the assessee. 7. We have heard both the parties and perused the orders of the Revenue Authorities and the papers filed before us. We shall take up each of the cash credit for adjudication in the following paragraphs. Regarding the cash credit of Rs 90 lakhs involving M/s Sreeji Corporation: Before the CIT(A), th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....32,817 in the books of Ms/. Shreeji Corpn. Until and unless the AO of the M/s. Shreeji Corporation gives the finding that their creditors are not genuine, the Ld. AO of the appellant had no option but to accept such loan as genuine." 8. Therefore, it is the case of mistaken supply of the PAN of HUF in place of Sri Rikabhchand Chordia, Individual. On appreciating the factual matrix of the issue, the CIT(A) granted relief. We have also considered the fact that the said amount of Rs 90 appears in the books of accounts of the the assessee as well as the Sreeji Corporation. It is also an undisputed fact that the impugned cash credit has been repaid by the assessee later in time. Further, it is a settled issue that the assessee is prevented fr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on record to doubt the creditworthiness or genuineness of the loan. 4.7. In view of the facts narrated above the Ld. AO is directed to treat the loan of Rs. 90 lakhs taken from M/s. Shreeji Corporation and Rs. 80 lakhs taken from M/s. Sumati Enterprises are genuine. Accordingly, these additions are directed to be deleted. Ground No.2 is allowed." 10. The PAN of the loan creditor is AAAHY3767N and the same is evident from the face of acknowledgement of the return of his income. The loan creditor is presently assessed with ITO Wd(1) Beawar, Rajasthan. Earlier, he was assessed with 25(2)(2) Mumbai, as it is apparent from the copy of acknowledgment of return of the HUF for AY 2003-04. AO merely suspect the loan transaction and otherwise,....