TaxTMI 
TaxTMI 
2014 (2) TMI 88
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....e by the AO u/s. 68 of the I.T. Act on account of unexplained cash credits, without properly appreciating the facts of the case and the material brought on record by the A.O. 1.2. In doing so, the Ld. CIT(A) has erred in law and on facts in not appreciating that the onus which lay upon the assessee of establishing the identity of the depositors, creditworthiness of the depositors and the genuineness of the transactions could not be discharged by the assessee before the AO. 1.3 In doing so, the Ld. CIT(A) has erred in law and on facts in admitting additional evidences in violation of the provisions of Rule 46A of the I.T. Rules. 2. The Ld. CIT(A)-XX, Ahmadabad has erred in law and on facts in deleting the addition of Rs.4,91,382/- m....
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....he legal position on Section 68, he made addition of Rs. 42,70,000/- and also disallowed the interest u/s. 36(1)(iii), which was not incurred for the business purposes at Rs.4,91,382/-. Further observation also given u/s. 69 of the IT Act. The ld. A.O. made addition u/s. 69C at Rs.42,70,000/- and no separate addition u/s.68 had been made and interest disallowed u/s. 36(1)(iii) of the IT Act. 3. Being aggrieved by the order of the A.O., the assessee carried the matter before the CIT(A) who had allowed the appeal by observing as under: For Addition u/s. 68 "3.1 I have carefully considered the findings of the Assessing Officer, the case law relied on by him and perused the submissions of the Ld. A.R. with details complied in two paper....
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....cheques which have been found deposited in his bank account. All the requirements as mentioned in the case of Rohini Builders (Gujarat High Court) being; 1. Permanent A/c. Number. 2. Full Postal Address 3. Copy of Ledger Account 4. Depositors confirmation. 5. Affidavits of the Creditors. 6. Copy of Income Tax Return in majority of the cases and 7. Cross confirmation of Bank Statement of the Creditors also in majority of the cases etc. for a genuine cash credit are filed and submitted by the appellant which sufficiently prove that each one of the creditors has brought in this money, for the benefit of the appellant to carry on business in partnership for Real Estate and also to set up business for Multi Speciality Dia....
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....T Act is deleted. For interest disallowance 4.1 After considering the full facts and that since the cash credits are held by me as explained, I am inclined to hold that the interest expenditure of Rs.4,91,382/- is thus incurred u/s.36(1)(III) and is allowable and the disallowance and addition made by the Assessing Officer is required to be deleted. The appellant has also in his 2 letters dated 11/5/2009 and 25/11/2009 filed before A.O. alongwith details thereto has filed necessary data to explain the claim of the appellant regarding borrowings made and the payment of interest incurred thereon. 4.2 In view of the fact that I have held the borrowings as genuine, and explained the payment of interest thereon is considered as for th....