2014 (5) TMI 619

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....of the IT Act on account of unsecured loan. 2. The assessee is engaged in the business of trading of semi-finished coxcial cable, PVC wrappers and wax jelly. During the year under consideration, the assessee has taken unsecured loans of of Rs. 6,00,000/- from M/S Arham Commercial Corp., Rs. 9,00,000/- from M/S Kiran Enterprises, Rs. 3,50,000/- from M/s Unnati Enterprises, Rs. 10,00,000/- from Deepak Gupta, Rs. 2,25,000/- from Sunil Kr. Jain, HUF and Rs. 1,50,000/- from Reena Jain. Vide questionnaire dated 09.01.2009 and order sheet entry dated 20.10.2009, the assessee was asked to establish identity of the creditors, genuineness of transactions and creditworthiness of the creditors in respect of new unsecured loans/deposits accepted duri....

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.... Kiran Enterprises were asked by your Goodself. In the mean while notice u/s 131 were also sent to the concerned parties for filing the confirmations. That the copies of confirmations of the concerned parties are enclosed herewith in annexure- 8..... ....out of the above said three parties, two of them are related to each other and had shifted to Rajasthan long back ago. Further our relations with all the above said parties are not too good as they were nearly 3 years back. So the delay in gathering and filing the confirmations is deeply condoned. In case your goodself require us to file the affidavits from the said parties, which can be filed in due course but will take nearly one week. So we are filing copy of confirmation along wit....

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..... 6.00,000/-; Rs. 9,00,000/- and Rs. 3,50,0001- received from M/s Arham Commercial Corporation, M/s Kiran Enterprises, and M/s Unnati Enterprises respectively., therefore, the Assessing Officer exercised its power u/s 131 of the IT Act, to call the witness and examine them, therefore the Assessing Officer has discharged its onus in the present case. 7. It has been observed by the Assessing officer that in the present case, the assessee did not furnish the copy of bank statements of creditors from which amount/loan has been taken by the assessee, explaining the source of credit entries there, was filed in respect of remaining creditors except Deepak Gupta; Sunil Kr. Jain HUF and Reena Jain, from whom it had taken loans of Rs. 10,00,000/-;....

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....h payee's account cheques; and that as such, the action of the ld. CIT (A) in deleting the additions wrongly made, does not call for any interference at all. 12. We have heard the parties and have perused the material on record. The ld. CIT (A) has found that the fact that the identity of the lenders in the cases of Shri Deepak Gupta, Ms Reena Jain and Shri Sunil Kumar Jain, HUF, stood established, since the assessee had filed copies of their income-tax returns along with their confirmed account statements before the AO. This evidence was not disproved by the AO. From these documents, it was found that the creditors were duly identified. Also, their confirmations were available before the AO. Bank statements of the lenders were produced ....