2013 (10) TMI 883

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....und with regard to each addition/disallowance. Therefore, in our opinion, no separate adjudication of ground No.1 is required. That would be consequential to disposal of other grounds. 3. Ground Nos.2 to 6 of the assessee's appeal are against the addition of Rs. 7,00,000/- sustained by learned CIT(A) in respect of unexplained cash credit. 4. The facts of the case are that during assessment proceedings, the Assessing Officer noticed that there was credit of Rs. 8 lakhs in the account of following three parties:- (i) Anu Singhal Rs. 3,00,000/- (ii) Sippy Jain Rs. 2,00,000/- (iii) Sonia Jain Rs. 3,00,000/- 5. The Assessing Officer was of the opinion that the onus is upon the assessee to prove the cash credit. He held that the....

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....t of Rs.300000/- is as under:- a) Rs.200000/- By cash deposit out of old cash in hand i.e. Rs.235497/- available as on 31-03-2008. Photocopy of income tax return & notes/balance sheet attached. b) Rs.100000/- Rs.97190/- Amount due from M/s Ganpati Fabrics received by bank trf. Dt. 10-11-2008 in PNB GT Road Panipat. Rs.3000/- By cash deposit out of cash in hand on dt 10-11-2008. The appellant has duly submitted before the Assessing Officer all these documents which includes copy of acknowledgement of return, copy of bank a/c, copy of a/c along with confirmation etc. Even all these documents have been placed in Paper Book before this Hon'ble Bench. Thus the appellant has proved the identity, capacity of creditor, genuineness of....

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....ever department has failed miserably to discharge the burden shifted on it. It is therefore prayed that the addition of Rs.200000/- may kindly be deleted. 3) Sonia Jain :- Rs.300000/- She is regular income tax assessee having PAN :- AIUPJ8436B. She has filed return of income for A.Y. 2009- 10 showing total income of Rs.195070/-. She has advanced Rs.300000/- to the appellant detail of which is as under:- Rs.300000/- Dt. 01-11-2008 Cheque no.00572310 Canara Bank Rohini. Delhi SB A/c no.17938. The source of the advance is the cash available with the assessee at Rs.343093/- on dt. 31-03-2008 which was deposited in the bank. In evidence copy of income tax return, computation of income, capital a/c & balance sheet for A.Y. 2008-09 has....

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....of the appellant." 7. In support of his contention, he relied upon the decision of Hon'ble Apex Court in the case of CIT, Orissa Vs. Orissa Corporation P.Ltd. - [1986] 159 ITR 78. He, therefore, submitted that the addition of Rs. 7 lakhs sustained by the learned CIT(A) as unexplained cash credit may be deleted. 8. Learned DR, on the other hand, relied upon the orders of authorities below and he stated that the creditors have deposited exact amount of cash before issuing the cheque in the name of the assessee. Moreover, the creditors were not produced before the Assessing Officer despite the specific direction from the Assessing Officer. He stated that the onus is upon the assessee to prove the cash credit and the assessee has failed t....

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....filed the return for AY 2009-10 declaring income of Rs. 1,82,580/-. The Assessing Officer has doubted her creditworthiness because the sum of Rs. 2 lakhs was deposited in the bank account before issuing the cheque of Rs. 2 lakhs to the assessee. However, the assessee has furnished the balance sheet of Anu Singhal for the year ended on 31st March, 2008 in which cash in hand of Rs. 2,35,497/- was disclosed. Therefore, she had a capacity of depositing Rs. 2 lakhs in the cash in her bank account during the FY 1.4.2008 to 31.3.2009. Similar are the facts with regard to Sippy Jain and Sonia Jain. In these two cases also, the assessee has furnished the income tax return, confirmation, bank account as well as balance sheet for the year ended on 31s....

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.... all the creditors. Even the assessee has also explained the source of cash deposited in the bank account of the creditors. On these facts, in our opinion, the initial onus which lay upon the assessee was duly discharged. If the Assessing Officer wanted to examine the issue further, he could have very well issued notice under Section 131 to the creditors which has not been done by the Revenue. Considering the totality of above facts, in our opinion, the assessee has duly discharged the onus of proving the cash credit in the name of all the three creditors viz., Anu Singhal, Sippy Jain and Sonia Jain. We, therefore, respectfully relying upon the decision of Hon'ble Apex Court in the case of Orissa Corporation (supra), delete the addition of ....