TaxTMI 
TaxTMI 
2017 (4) TMI 111
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....he Ld. CIT(A) erred in not condoning the delay in filing of appeal, although the appellant has the reasonable cause for the delay in filing of appeal. 3. That the Ld. CIT (A) erred in confirming the addition of Rs. 230000/- made by the Ld. AO u/s 68 of the Act by treating the fresh cash credits as unexplained. 4. That the Ld. CIT (A) erred in confirming the addition of Rs. 25300/- made by the Ld. AO by disallowing the interest paid of Rs. 25300/- to the unsecured loans not considered as genuine. 5. That the Ld. CIT (A) erred in confirming the addition of Rs. 7070/- made by the Ld. AO by disallowing 1/6th of expenses out of shop expenses on ad-hoc basis. 6. That the Ld. CIT (A) erred in confirming the addition of Rs. 5800/- made ....
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....ssessment proceedings, the Assessing Officer required the assessee to provide information in respect of unsecured loans including squared up accounts and also to explain the source of deposits in the accounts of creditors. From the details of copy of account furnished by the assessee in respect of unsecured loan raised during the year, he noticed that the assessee had raised loans worth Rs. 1,20,000/- from Smt. Santosh Devi, W/o Binod Kumar and Rs. 1,10,000/- from Smt. Santosh Devi, W/o Munshi Ram, Village Kanina. He required the assessee to establish the identity, creditworthiness and genuineness of the transactions in respect of these two unsecured loans. The assessee furnished copy of bank account along with proof of income-tax returns f....
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....f Rs. 36,000/- on account of low house hold withdrawals. Ld. CIT(A) dismissed the assessee's appeal. Being aggrieved, the assessee is in appeal before the Tribunal. 4. Ld. counsel referred to page 8 wherein the return of income of Smt. Santosh Devi, W/o Binod Kumar for assessment year 2011-12 is contained wherein the returned income has been disclosed at Rs. 1,87,730/-. He referred to page 9 of the Paper Book wherein the statement of total income, capital account for the year ending 31st March, 2011 and Balance Sheet as on 31st March, 2011 is contained. As per the statement of total income, the rental income has been received from M/s Manoj Kumar Rajesh Kumar amounting to Rs. 30,000/-. Further, income under the head 'business and profess....
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....er account of the creditor in the assessee's books of account is contained at page 15 of the Paper Book which is duly confirmed by Smt. Santosh Devi. Ld. counsel pointed out that the loan of Rs. 1,10,000/- was taken on 14.05.2010 and a cheque of Rs. 10,50,000/- was issued to Smt. Santosh Devi on 24.05.2010. Further, he referred to the bank account of Smt. Santosh Devi contained at page 16 - 17 of the Paper Book evidencing these transactions. 4.2 With reference to aforementioned documents, ld. counsel pointed out that the assessee had duly discharged his primary onus of establishing the identity, creditworthiness and genuineness of the transactions. He submitted that there is no law which prohibits any person from depositing cash in his a....
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....k on the same date on which the cheque was issued, no adverse inference can be drawn because the primary onus of the assessee stands duly discharged. In the present case from detailed submissions of ld. counsel, it is evident that returned income of both the creditors fully justified the small sums advanced by them. Both the creditors had current account with the assessee inasmuch as they had received rent from assessee. Under such circumstances, all the three ingredients for establishing the genuineness of transactions u/s 68 were fully met. 6. The second reason assigned by Assessing Officer was that the creditors were not produced. In this regard, I may observe that merely on this count, the addition cannot be made u/s 68. In view of a....