TaxTMI 
TaxTMI 
2017 (2) TMI 1188
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.... B. Patel(Rs.4,00,000/-) & (iv)Pragneshbhai M. Patel(Rs. 17,00,000/-) totaling to Rs. 30,00,000/-. 3. It is therefore, prayed that the order of the CIT(A) be set aside and that of the Assessing Officer be restored to the above extent." Ground No.1 3. In this case, return of income declaring income of Rs. 51,10,870/- was filed on 29th March, 2010. Subsequently, the case was selected for scrutiny and notice u/s. 143(2) of the act was issued on 30th August, 2010. During the course of assessment proceeding the assessing officer has noticed that assessee has claimed electrical expenses of Rs. 1, 0,4,274. The assessing officer has disallowed the full expenses stating that assessee has not produced any electricity bill for verification. Aggrieved against the this disallowance made by a the assessing officer the assessee preferred appeal before the learned CIT appeal on this issue. The learned CIT appeal has allowed the claim of expenses under the head electrical expenses of the assessee by stating as under:- "7.3. I have considered the facts of the case and submission made by the appellant. From the details and the copy of ledger account submitted, it is noticed that this was ....
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.... Rs.2,38,313/- 7 29.09.2008 ONGC Rs.34,603/- TOTAL Rs.33,91,434/- In this connection, the assessing officer has issued show cause notice to the assessee to explain the identity, genuineness and creditworthiness of the parties who have provided the above said credit entries to the assessee. The assessing officer stated that assessee failed to provide the required detail called for, therefore, he made addition u/s. 68 of the act to the amount of Rs. 33,91,414/- as unexplained credit u/s. 68 of the act. Aggrieved against the order of the assessing officer, the assessee filed appeal before the ld. CIT(A). The ld. CIT(A) has deleted the addition by observing as under:- "8.5. I have considered the facts of the case and submission made by the appellant. It is noticed that with respect to ONGC credits totaling to Rs. 3,91,434/-, the appellant has submitted that these were payments received from ONGC mainly for compensation for acquisition of agricultural land. In support, the copies of the compensation award agreements and agricultural land records etc. were furnished and "on verification thereof contention taken by the appellant was fo....
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....irmation of his bank account showing the balance of 40,70,871/- before granting loan to the appellant along with his PAN. An affidavit containing details of his PAN, cheque number, S.B. Account number and name of bank & branch etc. was furnished before the A.O. during remand proceedings. 8.7. From the aforesaid details, the identity of all the four cash creditors are established as they were filing the returns of income, their PAN was on record, maintaining bank accounts etc. Hence, identity is proved. Further the copy of their bank accounts have also been submitted showing their credit balances in their bank accounts, filing their returns of income, payments are made through cheques. Hence, there may not be any question about their credit worthiness also. Moreover, all the payments were made by way of cheques and cheque numbers, their name of bank and branches were also given. Hence on genuineness does not remain any doubt. Necessary confirmations and thereafter affidavits have also been furnished. So the onus casts upon the appellant was duly discharged. 8.8. The A.O. has raised objection in the second remand report dtd. 9.5.2013 that the cash creditors were not produced by....
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....o produce the cash creditors inspite of onus shifted on him to make enquiries but he failed to do so. If the appellant was unable to produce then he would have issued the summons as the addresses of all the cash creditors were available with him. So in the given facts, the identity, credit worthiness and genuineness of the cash credits are established by the appellant through adducing various details and documents and appellant had sufficiently discharged the onus cast upon him as per requirement of Section 68 of the I.T. Act in view of the various case laws cited above. So, the addition made by the A.O. for the aforesaid parties are deleted and appellant gets the relief. Thus, this ground of appeal is allowed." 6. During the course of appellate proceedings before us ld. departmental representative contended that ld. CIT(A) has erred in deleting the addition made on account of unexplained cash credit of 4 creditors. On the other hand, ld. authorized representative submitted paper book containing written submission and copies of confirmations obtained from credit parties, affidavit of depositors confirming of deposits. He supported the order of ld. CIT(A). 7. We have heard bot....