2014 (2) TMI 464

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.... Syndicate Bank Sonepat. The CIT Appeal has granted the part relief by holding as under :- "7. I have considered the issues and the submissions made by the AR. The assessee could not give satisfactory explanation for the cash deposits and cash withdrawals in his bank account. Regarding the alleged loans stated to have been taken by the assessee, the AO in the assessment order clearly brought out on record that the alleged creditors are not creditworthy. The assessee failed to bring on record the nature of the transactions in his bank account and the purpose for which they have been entered into. The assessee, either during the assessment proceedings or during the appeal proceedings, failed to bring on record and substantiate the nature and....

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....led by the assessee and ignoring the confirmations filed by persons from whom loans were taken. 2. That the appellant reserves its right to add or alter any Ground of Appeal." The revenue is in appeal by taking following ground :- " 1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in law and facts in deleting the addition of Rs. 8,72,343/- inspite of his specific finding that "the assessee could not give satisfactory explanation for the cash deposits and cash withdrawals in his bank account. The assessee failed to bring on record the nature of transactions in his bank accoaunt and the purpose for which they have been entered into". 2. On the facts and in the circumstances of the case, the ld. CIT(A) has err....

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.... Rs. 2,00,000/- on 29.1.2005, Shri Manoj Saroha, Jasbir, Rajender Singh, Ramesh Gahlawat and Shri Bhawan Singh were agriculturist. They were holding land. These persons were having the sufficient land which proved their creditworthyness, their identity was proved by filing photo identities. These persons have also submitted confirmation of the loan giving by them to the assessee. Photo ID in the form of ration card, driving licence, copy of passport and copy of the Election Commissions identity form were also filed. The Assessing Officer has not controverted the confirmation of loan given in these affidavit by all these persons. Although these persons are not accessed to income tax but the sufficient land holding prove their creditworthines....

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....ave heard both the sides, we have also perused the records and document submitted before us in paper book. The confirmations filed are on stamp papers but these are not verified by any notary or other authority. The assessee has not disclosed the purpose for which these loans were raised. Loan stated to have been raised without any purpose. The amount was not utilized for any purpose during the year. A salaried person shall not raise any loan that too from non- relatives just to deposit the amount in his bank account. No evidence had been placed on record to show that such amount unutilized for any purpose in future. Nothing on record to show the repayment of these loans. In view these facts the true nature of these transaction remains to b....