2015 (12) TMI 1751

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....d placing various mobile towers, etc. since incorporation. The return of income was filed declaring income at Rs. 9,77,596/-. In the assessee's appeal the only ground is against sustaining addition of Rs. 15,49,118/- made on account of unexplained cash credit u/s 68 of the Act. The grounds of appeal read as under :- "The learned CIT(A)-I, Indore, was wrong in confirming the addition of Rs. 1549118/- made by the Assessing Officer on account of unexplained cash credit u/s 68 of Income tax act on the ground of applicant was unable to prove the creditworthiness of the lender. Where there is no reason why the cash credit should not be accepted as genuine. The addition of cash credit is bad in law." 3. Before us, the learned counsel f....

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....sessee. The transaction is through depositor's bank account which clearly establish the genuineness of the transaction. He further submitted that the depositor herself has also explained the source of the source from where she has received the amount which ultimately was advanced to the assessee. As per her statement, she has received Rs. 5 lakhs each from Naveen Juneja on 9.12.2009 and on 21.12.2009. She also received Rs. 5 lakhs from Sunil Jeneja on 8.1.2010. All these amounts were received through account payee cheques. She has issued the cheques to the assessee. The depositor herself is engaged in the business and having sufficient cash balance in hand as on 31st March, 2010. All these facts have not been properly appreciated by the rev....

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.... has established the identity of the depositor. The assessee has also established the genuineness of the transaction. Further the assessee has also been able to submit sufficient material which establish the creditworthiness of the depositor. In view of these cumulative factors, we find no justification in sustaining the addition and delete the same. 5. In the result, the appeal of the assessee stands allowed. 6. In the revenue's appeal in ground nos. 1 and 2 the issue involved is against deleting the addition of Rs. 50,58,257/- made on account of receipts not recorded in the books of accounts. 7. Before us it was submitted that the Assessing Officer's contention regarding not recording the receipts of Rs. 50,58,257/- in the books ....

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....9,743/- Transportation charges Written back Rs.4,73,951/- Rs. 51,76,754/-   Net receipts Rs. 4,88,16,984   5.2 Both service tax and escort charges on net basis are shown separately in profit and loss a/c. Copy of ledger a/learned CIT(A) of handling charge written back & transportation charges written back is also furnished. Appellant has itself admitted an unexplained difference of Rs. 60,714/- in the figures of sales which aas per books of accounts are Rs. 5,39,93,738/- & as per form no. 26AS they are Rs. 5,40,54,452/-. Hence out of addition of Rs. 51,18,971/- only addition ofRs.60,714/- is sustained & balance addition is deleted. As a result Ground. No. 1 of appeal is partly allowed." 8. After hearing ....