TaxTMI 
TaxTMI 
2016 (3) TMI 505
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....tax Act, 1961 (for short "the Act"). 2. The brief facts of the case are that the assessee is an individual, filed return of income on 16th March, 2010 showing income of Rs. 9,15,680/-. The assessment was framed under Section 143(3) of the Act on 22.12.2011. During the course of assessment, the statement of affairs of the assessee were examined wherein it was found that loan of Rs. 33,15,000/- has been taken by the assessee from M/s. Zodic.Com Solution (P) Ltd. The assessee submitted before the Assessing Officer the confirmation of M/s. Zodic.Com Solution (P) Ltd. stating its address and PAN of the lender. However, the assessee could not submit the income tax return and bank statement of the lender and, therefore, the Assessing Officer made....
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....could see from the order of the learned Commissioner of Income Tax (Appeals) as well as the Assessing Officer that the assessee has filed confirmation, permanent account number, audited balance-sheet and profit and loss account of the lender. On going through order of ld AO. we found that merely because the assessee could not file the bank account statements and income Tax returns of lender company, the addition has been made. When assessee has submitted the confirmation of the company which is having PAN and assessed to income tax the account also shows the receipts by the cheques and in subsequent years, loans of this company was accepted by AO. learned Commissioner of Income Tax (Appeals) has dealt the issue in its appeal order as under:....
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.... doubt about the creditworthiness of the lender, the AD could have verified from the assessment record from the AD of the creditor company as they are being assessed in the same city as that of the appellant. 5.1 I further find that the AD in his order has not brought any material on record to show that the confirmation filed by the creditor is not genuine, here I would like to place reliance in the case of CIT vs. Gangour Investment Ltd. (Income Tax Act No. 34/2007) dated 30.1.2009 where it was held that Revenue can make addition under Section 68 of the Act only if the assessee is unable to explain the credits appearing in its books of accounts. In the said case the appellant has duly explained the said credit entries in the form of var....
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....above, I am of the considered view that the appellant has discharged the initial onus of establishing the bona-fides of the transactions by filing the confirmation, audit financial statement and PAN particular of the creditor viz. Zodiac.com Solutions P. Ltd. and the AD was not justified in ignoring these evidences provided to him by the appellant. Thus in view of the above discussion and keeping in view the fact that confirmation of the creditor company its financial statements and PAN number details was filed with the AO, l am of the considered view that the addition made by the AD deserves to be deleted. In a result the appeal is allowed." 6. Learned Departmental Representative could not find any infirmity in the order of the lea....