2019 (1) TMI 581

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.... appeal:- "1. The ld. CIT(A) has erred in law and on facts in deleting addition made on account of bogus unsecured loan as cash credit u/s. 68 of the I.T. Act of Rs. 1,07,00,000/-" 3. The return of income declaring income of Rs. 2,00,71,070/- was filed on 27th Sep, 2009. Subsequently, assessment u/s. 143(3) of the act was passed on 30th December, 2009 and income was assessed at Rs. 2,05,71,070/-. Thereafter, order u/s. 263 of the was passed on 29th March, 2014 by the CIT(A), Gandhinagar holding that original assessment order made u/s. 143(3) of the act by the assessing officer was erroneous and prejudicial to the interest of revenue as the assessing officer had not examined the creditworthiness of unsecured loan of Rs. 7 lacs....

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....n first July, 2008 and on the next day an amount of 11 lacs was provided as loan to some other person. Thereafter, on 9th July 2008 there was again credit entry of Rs. 9 lacs as deposit in bank account and on the next date on 10th July, 2008 the impugned loan of Rs. 7 lacs was given to the assessee. Therefore the assessing officer observed that transaction with the depositors were not genuine and it was the money of the assessee which was routed through bank account of lenders as accommodation entries. Therefore, the assessing officer has made addition of Rs. 7 lacs by treating the same as unaccounted transaction. 4. Aggrieved assessee filed appeal before the ld. CIT(A). The ld. CIT(A) has allowed the appeal of the assessee. The relevant....

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....w of above, it is clear that deposits made are through banking channel and is supported by the confirmations duly executed by the depositors who are assessed to tax and who have given the deposits by way of cheque from their bank account. Even there is no dispute regarding details given by appellant to prove genuineness of transaction or capacity of depositors. Hence the onus casted by section 68 has duly been discharged by the appellant and he cannot be called upon to furnish source of source of any deposit. Thus taking into consideration the totality of the facts and circumstances of the case, I am of the opinion that the AO has erred in making the addition of Rs. 1,00,00,000/- and Rs. 7,00,000/- which is directed to be deleted a....

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....s, PAN , loan confirmation letter , bank statement and copy of return of income of Shri Jayantilal R. Patel. The lender has also supplied the information in response to notice issued u/s. 133(6) of the act i.e copy of pan card, copy of return of income, source of deposit, copy of bank statement and copy of ledger account along with confirmation. The entire deposit has been received by the assessee through account payee cheque. In the light of the above facts and circumstances we observe that assessing officer has not contradicted and disproved the claim of the assessee with findings based on supporting evidences to demonstrate that assessee has introduced his own unaccounted money through the depositors. The assessing officer has also not c....