TaxTMI 
TaxTMI 
2013 (12) TMI 132
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....admitting total income of Rs.1,20,772/- which was accepted u/s.143(1). Subsequently, the A.O. selected the case for scrutiny and completed the assessment u/s.143(3) and after making certain additions determined the total income of the assessee at Rs.41,55,270/-. The CIT(A) in appeal subject to certain directions deleted the additions so made by the AO. The revenue is thus in appeal before us, raising the following grounds of appeal: "i. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition made u/s. 68 of the Act amounting to Rs.31,00,000/- on account of loans accepted during the year, without appreciating the fact that the Assessee has not been able to discharge the prim....
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....Rs.31,00,000/- to the income of the assessee as unexplained cash credit u/s.68 of the I.T. Act. 3.2 The ld. CIT(A) in appeal observed that the assessee had filed the confirmation letters from the creditors before the AO. in which the addresses of the parties were clearly indicated. Though the PAN of the creditors were not mentioned in the confirmation letters, yet, it was evident that the loans were received through banking channel. The respective entries were made in the bank accounts of the assessee and the same was forming part of the regular books of accounts maintained by the assessee. It was further observed by him that that the said loans had been repaid by the assessee through account payee cheques as evidenced from the bank acco....
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.... ld. Representatives of the parties. We are in agreement with the findings of the CIT(A) that the AO could not have made the above mentioned additions without making proper inquiries to satisfy himself regarding the genuineness of the creditors etc. The AO firstly should have asked the assessee to furnish the required details such as PAN number etc. of the creditors and secondly he himself could have summoned the records and in case of need the creditors by issuing summons under section 131 of the Income Tax Act. Admittedly no such course was adopted by the AO. Hence in our view the Ld. CIT(A) has rightly restored the issue to the file of the AO with liberty to the AO to make necessary inquiries about the creditworthiness etc. of the credit....
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.... not during the relevant year and further that the AO wrongly related the same to the loans taken during the year under consideration. We do not find any infirmity in the order of the CIT(A) on this issue also, hence, the same are upheld. 5. Ground No.(iii): Cash deposit-Rs.5,74,500/- 5.1 The A.O. noticed that the assessee deposited Rs.5,74,500/- during the year in cash in his bank account maintained with M/s. Jain Sahakari Bank Ltd. A.O. required the assessee to explain the source of deposit. The assessee submitted that the cash in question was deposited in parts on different dates and furnished the date & item wise cash account to the AO. He further explained that the source of such deposit was out of the opening cash balances of Rs....