TaxTMI 
TaxTMI 
2012 (8) TMI 1129
X X X X Extracts X X X X
X X X X Extracts X X X X
....uine and creditworthiness of the creditors was said to be not proved and accordingly the amount of loan was added in the assessee's income. In appeal, the CIT (Appeals) found that the source of entire fund was established from the books of accounts of creditors and it was found that the addition made by the assessing officer in this head was unsustainable and accordingly the same was deleted. The revenue's appeal has been dismissed by the Tribunal by recording the finding that the assessee and creditors had explained each and every entry of inflow of money in bank account and their respective utilisation, the payments were through account payee cheque, the source of each entry was fully proved, the identity of the creditors was prov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tions, carefully gone through the orders of the authorities below and also decisions relied on by lower authorities in their respective orders as well as relied on by the Id. Authorized Representative and Id. CIT DR during the course of hearing before us in the context of factual matrix of the case. From the record, we found that assessee company is carrying on business in cotton and brokerage of cotton. The loan was received from the close relatives/friends of the Director of the assessee company. To prove the genuineness of credit balance in the account of Saurabh Cotton and Sharda Agencies, the assessee had filed copy of accounts and Bank account of creditors. The assessee and creditor have explained each and every entry of inflow of mon....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the concerns Shri Hashtimal Jain and Shri Rajendra Kumar Chhajed in their statement accepted the amount of advances given by them to the assessee. There is no dispute to the well settled legal proposition that in case of cash credit not only identity and genuineness of the loan transaction is required to be proved but at the very same time, creditworthiness of loan creditor is equally important to be proved. With regard to the identity of the creditors, we found that both the creditors are income tax payers and copies of their assessment orders for the past three years have been filed to prove their identity and they also personally appeared before the AO and their statement was also recorded. The genuineness of the transaction stand prove....