2011 (2) TMI 1558

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....g dissatisfied, the Revenue has come up with the present appeal. The facts giving rise to filing of this appeal may be summed up thus: The assessee filed return of income tax on 16th October, 2006 disclosing total income of Rs. 1,62,982/-. The assessing officer assessed the total income of the assessee at Rs. 17,90,940/-. According to the assessing officer, the assessee apparently took loans from friends and relatives of Rs. 16,25,961/- which was outstanding at the end of the year and consequently, after issuing summons under Section 131 of the Act to some of the persons, who had given loans to the assessee, the assessing officer came to the conclusion that the amounts given as loans were deposited in the bank account of the cre....

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.....e., 35,30,000 - 16,25,961) was found to be satisfactorily explained or not. The AO was also asked to verify the contention of the appellant that most of the loans which were given to the appellant by the loan creditors were out of repayment of loans received by them from two concerns namely - (1) Swastik Refinery Pvt. Ltd. & (2) Shri Vegetable Oil Co. Pvt. Ltd. The appellant had also stated that part of the loan was also out of withdrawal from PPF account and cash deposit from personal account. The AO was also asked to verify the claim of the appellant that the above two concerns i.e., Swastik Refinery P. Ltd. and 'Shri Vegetable Oil Co. P. Ltd. are filing return of incomes since several years and the balances of the cash creditors wer....

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.... are found to be reflected in the balance sheet of the said concern. Appellant filed copies of bank account as also cash flow chart showing the sources of the loans given. On the contrary no material has been brought on record to establish that the deposits in the bank account of the cash creditors were out of funds received from the appellant. The primary onus u/s. 68 cast on the appellant has been discharged by the appellant by furnishing the complete name & address of the depositors by furnishing their confirmation and details of Income Tax Returns filed by them as also by producing copies of their bank statements and sources of funds out of which the loans had been given. Some of the depositors were even examined by the AO during the co....