2011 (7) TMI 1251

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....5. 2. The solitary issue in this appeal relates to an addition of Rs. 8 lakhs sustained by the Commissioner of Income-tax (Appeals) in terms of section 68 of the Act. Briefly put the facts are that the assessee is an individual deriving income from share trading etc. In the course of assessment proceedings, it was noticed that assessee had received a loan of Rs. 8 lakhs from one M/s Global marketing. The Assessing Officer summoned the said party in response to which Shri Vinay Setia, partner of the said firm was examined. The said partner confirmed having advanced the impugned loan to the assessee, but the Assessing Officer was not satisfied about the creditworthiness of the creditor and accordingly, she treated the sum of Rs. 8 lakhs as....

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....e loan was returned by the assessee in subsequent year through account payee cheque which also stood confirmed by the creditor during the course of his examination by the Assessing Officer. It has also been pointed out that where the assessee has established the identity of the creditor and the creditor had accepted advancing of the amount to the assessee, no addition is permissible under section 68 of the Act and, in this regard reliance was placed on the following judgments: (i) Kanhzaiyalal Jangid 8 DTR 38 (Raj.); (ii) CIT v. Diamond Products Ltd. 21 DTR 9 (Del). (iii) Manoj Kumar Gupta v. ITO 114 TTJ 253 (Jp.) 5. On the other hand, the learned Departmental Representative, appearing for the Revenue, has defe....