TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 1230
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....e of the fact that loans are through banking channel, from existing assessee, returned through bank, creditors are not related and their identity is not in doubt." 3. Briefly stated the facts giving rise to this appeal are that the Assessing Officer has made an addition of Rs. 3,50,000/- u/s 143(3) of the Income Tax Act, 1961 (for short the 'Act') dated 28.12.2007 on account of unexplained loans. The assessee filed an appeal before the CIT(A) and the first appellate authority vide his order dated 05.02.2010 enhanced the addition to Rs. 7,00,000/-. The assessee took the matter before the ITAT Delhi 'F' Bench and the Tribunal by order dated 03.11.2010 set aside the matter and restore it back to the file of the AO for making de novo assessmen....
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....ed out that the assessee also filed his affidavit dated 17.12.2009 supporting the facts and circumstances in which loans were taken and returned to the respective creditors, therefore, the Assessing Officer was not correct in making addition in this regard and the CIT(A) was unjustified in upholding the same. 6. Ld. counsel for the assessee pointed out that the confirmations and all relevant bank statements and copies before the AO, but the AO insisted to present creditors in person which was not possible as Shri Om Prakash Gupta died before assessment proceeding and Smt. Radha Goyal, was old cancer lady died in October, 2011. Ld. counsel submitted that summons issued by the AO during the reassessment proceeding could not be complied becau....
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....espective creditors and proceeded to make the impugned addition, which cannot be held as in accordance with law. 8. Ld. Departmental Representative (DR) pointed out that during the reassessment proceedings, assessee did not file any confirmation, bank account and other relevant evidences in support of impugned loans and the summons were issued to the creditors on 25.03.2011 and to their legal heirs on 14.12.2011 but there was no compliance of these summons. The Ld. DR supporting the action of the AO submitted that in this situation AO had no option to make addition u/s 68 of the Act when the assessee failed to prove creditworthiness of the respective creditors and genuineness of the transaction. The Ld. DR supported the impugned order and ....
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.... identity of the creditor, creditworthiness of the creditors and genuineness of the transaction. These 3 requirements are cumulative and if any of these conditions is not fulfilled, the amount can be added u/s 68. In the case under consideration, the appellant has failed to discharge its onus of establishing the identity of the creditor, creditworthiness of the creditor and genuineness of the transaction, inspite of repeated opportunities given by the AO. The submission that the undersigned may issue summons is devoid of any merit as the AO has already issued/ summons to the depositors as well as their legal representatives which was n01j complied. The AO has also brought this fact to the notice of the appellant to which it was submitted th....
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....ificate issued by respective creditors Smt. Radha Goyal and Shri Om Prakash Gupta & Sons available at pages 2 and 4 of the assessee's paper book we clearly observe that these confirmations also contain PAN number, respective ward details of the Assessing Officers of the creditors and in this situation the Assessing Officer could have verified or cross check these transactions from the respective assessments records of the creditors from their respective AO and this exercise has not been conducted by the AO or by the CIT(A). In this situation, we are inclined to hold that the authorities below ignored all relevant documents including confirmation bank statement of the assessee showing receipt of loan as well as repayment of loans through ban....
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....Prakash Gupta (HUF) which were rejected at the threshold without any consideration by the authorities below, without any further verification from the respective assessment records of the alleged creditors, whereas the assessee submitted their PAN numbers, addresses and details of their assessment ward and AO during reassessment proceeding. In this situation, we respectfully follow the ratio laid down by the Hon'ble Jurisdictional High Court of Delhi in the case of CIT Vs. Dwarkadhish Investment P. Ltd. (supra) wherein their lordship held that the assessee submits the identity of the creditors by either furnishing PAN number of Income Tax assessment number and other relevant details showing genuineness of the transaction and creditworthines....