TaxTMI 
TaxTMI 
2015 (8) TMI 165
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....eriod for payment. If the holiday does not fall on last day of period for payment of the bill, the assessee does not deserve to get relief." 3. Learned DR of the revenue supported the assessment order and learned AR of the assessee supported the order of CIT (A). 4. We have considered the rival submissions and gone through the orders of the lower authorities. We find that learned CIT (A) has allowed relief only in respect of two payments which were made on Sundays and he has confirmed the balance disallowances u/s 40A (3). We also find that it is noted by the A.O. in the assessment order that these are cash purchases. Therefore, there is no requirement to find out the due date of the bill. This is not the case of the A.O. that these two dates are not on Sunday. Considering all these facts, we decline to interfere in the order of CIT (A) on this issue. This ground is rejected. 5. Ground No. 2 & 3 are as under:- "Because the Ld CIT (A) - II, Lucknow erred in law and on facts in deleting the addition of Rs. 18,00,000/- by accepting the submissions of the assessee that saving bank account of HDFC Bank, in which deposits were made through loan obtained from 98 persons on personal gr....
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....ill apply and the amount so credited may be charged to tax as the income of that previous year, if the assessee offers no explanation or the explanation offered by him is not satisfactory. As the Tribunal has pointed out, it is fairly well settled that when moneys are deposited in a bank, the relationship that is constituted between the banker and the customer is one of debtor and creditor and not of trustee and beneficiary. Applying this principle, the pass book supplied by the bank to its constituent is only a copy of the constituent's account in the books maintained by the bank. It is not as if the pass book is maintained by the bank as the agent of the constituent, nor can it be said that the pass book is maintained by the bank under the instructions of the constituent. In view of this, the Tribunal was, with respect, justified in holding that the pass book supplied by the bank to the assessee in the present case could not be regarded as a book of the assessee; that is, a book maintained by the assessee or under his instructions. In our view, the Tribunal was justified in the conclusions at which it arrived. 5(2)(ii) The AO is therefore not justified in invoking the provi....
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....without rejecting the same. The Hon'ble Court laid down that the persons who gave the affidavits were not cross-examined, it was not open to the Revenue to challenge the correctness of the cash book entries or the statements made in the affidavits. The decision of the Supreme Court lays down "that if there is no material whatsoever on record for doubting the veracity of the statements made in the affidavits and if the deponents have also not been subjected to cross-examination for bringing out the validity of their statements, then the Tribunal would not be justified in doubting the correctness of the statement made by the deponents in the affidavits." Thus the affidavits need not be accepted as reliable when there is enough material on record to doubt the veracity of the transaction. In the instant case there is no material with the AO to discard the evidence filed in the form of affidavits. Once the AO has called only 10 of the 98 persons, it is therefore not open to the OA to reject the affidavits of remaining 88 persons without cross examination. Even in case of other persons, 9 out of 10 persons who appeared have confirmed the loans. As regards non-filing of details of lan....
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....creditors would not have saved any money to advance the loan. In the circumstances of the case, the view taken by the Accountant Member is in accordance with law. In other words, it is not a fit case to make addition under section 68. 5(6) In view of my examination above, I find that the addition of Rs. 18,00,000/- on account of loans taken from the 98 persons has been made without proper examination and cannot be justified in view of decision supra. The addition of Rs. 18,00,000/- is therefore deleted giving relief to the appellant." 8. From the above paras from the order of CIT (A), we find that the A.O. had inter alia three objections that the HDFC Bank Account is not incorporated in Balance Sheet, (2) No evidence was filed in support of loan except affidavits and (3) details of land for the purchase of which loans were taken were not filed. Regarding the first objection, a clear finding is given by CIT (A) that the balance sheet was prepared for business affairs and this bank account was a personal account. It is not shown by the revenue that any business transaction was carried out through this bank account and hence, we find no merit in this objection of the A.O. 8.1 Regar....