TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 529
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....s required and therefore, same are dismissed. 3. Ground No. 2 relates to addition of Rs. 8,82,378/- towards capital introduction. 4. Facts of this issue in brief are that in the assessment order, the Assessing Officer has noted that assessee has introduced capital, amounting to Rs. 8,82,378/-. The Assessing Officer asked the assessee to produce the source of the above capital. The assessee has submitted before the Assessing Officer that he was working as Sales Manager in M/s. Fena Pvt. Ltd., New Delhi since 1987 and the salary savings accumulated was invested in liquor shop retail business, but no supportive evidence is filed. Therefore, the Assessing Officer has made the addition of Rs. 8,82,378/- in the hands of the assessee. 5. On app....
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.... dismissed. 9. Ground No. 4 relating to addition of Rs. 24.00 lakhs towards loan creditors. 10. Facts of this issue in brief are that in the assessment order, the Assessing Officer has noted that during the course of assessment proceedings, assessee was asked for the source of cash deposits made in the savings bank account. The assessee has submitted a list of loan creditors for Rs. 63.00 lakhs and the same amounts are deposited in cash in the bank account. To examine the genuineness of the loan creditors, the Assessing Officer requested to produce all the loan creditors for examination of their source for giving such huge loans to the assessee. Before the Assessing Officer, some of the creditors were present and they were examined on oat....
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....0,000/-. To examine the genuineness of the loan creditors, the Assessing Officer asked the appellant to produce the loan creditors for examination. The Assessing Officer stated that some of the creditors were present and they were examined on oath and statements were recorded from them. He further observed that all these loan creditors were small farmers and do agricultural activities. It was abnormal that no farmer had received any interest on the huge loans stated to have been given to the appellant. Hence, the Assessing Officer concluded that the cash deposits were nothing but unexplained money brought into the books of account of the appellant and added the same to the income of the appellant. 8.1 As regards, loan creditors, it could....
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....en in cash. Agricultural income was said to be source for lending the amount to appellant for all the above persons. All of them claimed that neither the principal amount nor interest was paid to them by appellant till date (i.e.) 10.01 .2014. 8.2 Initial onus of appellant is, in my view, discharged in respect of above parties, when the existence of loan creditors is established and such advance I loan is owned up by such persons. If the capacity of the creditor and genuineness of transaction is doubted by Assessing Officer, it is for him to cause suitable enquiry and confront the appellant with the outcome of such enquiries. No such enquiry was carried out at Assessing officer's end as per the records. Hence, in my view, Assessing O....
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....ipal and interest payable mentioned in the pronotes vis-a-vis their corresponding recorded statements. In the case of S.Punjabi Vs AClT[(ITAT, Madras) 62 TTJ 749], the Hon'ble Madras ITAT held as follows: "Confirmations letters filed in respect of some creditors - None were produced for examination - Did not ask Assessing Officer to issue notice u/s 131 - All are cash transaction Creditors are not Income Tax Payers - Confirmation letter says "out of past savings"- Addition upheld." As no further evidence was produced by appellant either before the Assessing Officer or during appellate proceedings, I hold that loan creditor claim for balance amount of Rs. 24,00,000/- (Rs.63,00,000 - Rs. 39,00,000) was not proved by three essenti....