2017 (5) TMI 1412

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.... record. 3. Briefly the facts of the case are that during the year under appeal, the assessee has shown deposit of Rs. 11,25,000/- in the name of Sh. Balwant Singh detailed below:- (i) 14.01.2008 Rs. 3,00,000/- (ii) 14.01.2008 Rs. 3,25,000/- (iii) 28.01.2008 Rs. 5,00,000/- 4. The assessee was required to furnish confirmation of the cash creditor with documentary evidences and also to prove identity, genuineness and creditworthiness of the depositor. The assessee filed confirmation letter and also bank account. Perusal thereof revealed that the depositor Sh. Balwant Singh neither filed return of income nor was man of means to advance a large sum to the assessee. Perusal of the bank accounts revealed that ther....

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....bmitted that the assessee filed confirmations of the lender, copy of the election card of the lender, copy of bank statement and copy of the sale proceeds of agricultural commodities. Therefore, the assessee proved the identity and creditworthiness of the creditor as well as proved the genuineness of the transaction in the matter. Certain case laws were also relied upon. 6. Ld.CIT(A) found that even if copy of seven Form (J) showing sale proceeds of agriculture produce by the lender are filed as additional evidence but this would added upto total of Rs. 5,73,843/-. The depositor claimed deposit in Jan. 2008 but the document shows sale, much beyond this period. Even some of the documents have illegible dates. It is also noted that the len....

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....ailed to prove creditworthiness of the creditor. The bank A/c of creditor revealed that on 14.01.2008 there is a cash deposit of Rs. 6,25,000/- in his account alongwith Rs. 1,000/- and on the same day, two drafts of Rs. 3,00,000/- & Rs. 3,25,000/- with bank charges have been issued in the name of the assessee. Similarly on 28.01.2008, there is a cash deposit in the bank account of the creditor of Rs. 5,02,000/- and on the same day draft of Rs. 5,00,000/- has been issued to the assessee. Thus, the creditor has no explanation of source of the cash deposited in his bank account Form (J) were filed before the Ld.CIT(A) showing sale proceeds of agricultural produce but these were also not sufficient to prove the creditworthiness of the creditor ....