TaxTMI 
TaxTMI 
2019 (2) TMI 229
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....aw in confirming addition made by AO u/s.68 without considering/appraising the evidences of the sources of the depositors & inspite of the fact that all the depositors have owned up the funds & have confirmed the same in their confirmation letters. 2. Learned CIT(A) has erred in fact & in law in confirming addition made by AO u/s.68 as A.R. of the appellant did not produce evidences properly before lower authorities & hence the evidences need fresh appraisal. 3. The appellant craves leave to add/ amend any of the above grounds of appeal." 3. The appeal was fixed for hearing on 12-11-2018 and the same was adjourned to 26-12-2018 at the request of the assessee. However, despite service of notice, none appeared on behalf o....
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....l date. The assessee also confirmed that no interest was debited or paid on the said loans and also the loans were not paid even after a period of more than six years. The Assessing Officer then took note of the sources of each of the lender. Kanchan Satale who had advanced sum of Rs. 2 lakhs explained the source to be out of tuition fee received and out of her savings which were deposited in the bank. The Assessing Officer noted that her gross total income for assessment year 2009-10 was Rs. 2,00,250/- out of which she had deposited Rs. 1 lakhs each on two different dates in the bank account and on the next day, the said amount was transferred by cheque to the bank account of the assessee. The Assessing Officer did not accept the credit wo....
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....Officer did not accept the explanation of the assessee and held that in the absence of establishing the credit worthiness being proved, the said amounts have to be added under section 68 of the Act. Further, in respect of Bharati Dharme who lent the sum of Rs. 49,900/- out of her savings and Narayan Salunkhe Rs. 50,000/- out of his savings; since the assessee could not establish the credit worthiness, the same were added in the hands of the assessee. Lastly, in the case of Kusum Satale, a sum of Rs. 9,50,000/- was advanced to the assessee and she explained that the same was out of her house property income. The said person was not assessed to tax and had cash deposits in the bank accounts. The amounts were transferred to the assessee. Si....
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....vanced loan of Rs. 2 lakhs, (2) Kusum Anandrao Satale who had advanced a sum of Rs. 9,50,000/- and (3) Ganesh Anandrao Satale (HUF) who had advanced sum of Rs. 6 lakhs, had opened their bank accounts just before giving unsecured loans to the assessee and in the absence of their requisite income source, there is no merit in the plea of the assessee. Since the assessee has failed to prove the credit worthiness of the loan creditors, genuineness of the transactions, is not established, the amounts received from the aforesaid persons need to be added in the hands of the assessee under section 68 of the Act. In respect of the balance loan creditors, the assessee has not proved the credit worthiness of the said persons for making the aforesaid ad....
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....sited the cash in their bank accounts and issued cheques subsequently. Since all the lenders did not have sufficient source of income, the explanation of the assessee is not accepted and the addition made under section 68 of the Act is upheld. 8. The Ld. Departmental Representative for the Revenue has also relied on the ratio laid down by the Hon'ble Gujarat High Court in the case of Blessing Construction Vs. ITO (2013) 32 taxmann.com 366 (Gujarat) wherein also, the issue was in respect of cash credits and the burden of proof is on the assessee. In the facts of the said case, the depositors had deposited the cash in their bank accounts and immediately the entire amounts were withdrawn by issuance of cheques in favour of the assessee. ....