TaxTMI 
TaxTMI 
2014 (7) TMI 1289
X X X X Extracts X X X X
X X X X Extracts X X X X
....21,45,000/- made by Ld.Assessing Officer on the ground of Creditworthiness & Genuineness of the loan creditors, when all the loan creditors are Income Tax Assessee holding Valid Permanent Account Number. 2. That the learned CIT(A) should have accepted the affidavits made by the loan creditors wherein they have duly accepted the loan given & also submitted copy of the Income Tax Return along with the Balance Sheet where the loan given to your appellant is duly reflected on the assets side of the Balance Sheet. 3. That Ld. CIT(A) has erred in treating income/earning of the Loan Creditors during that particular year as a only criteria for capacity to loan given whereasz the Loan had been given from out of old savings. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0,000 3. Mr.Chirag Jhunjhunwala 95,000 4. Ms.Isha Jhunjhunwala 1,50,000 5. Mr.Manoj Kumar Mandholia 2,00,000 6. Mrs.Mina Devi Mall 1,25,000 7. Mrs.Radhika Sharma 1,00,000 8. Mrs.Rajinder Kaur 3,00,000 9. Mr.Rameswar Prasad Saraf, HUF 75,000 10. Mrs.Rasmoni Poddar 1,00,000 11. Mrs.Seema Devi Agarwal 1,00,000 12. Mrs.Shankar Shaw 1,00,000 13. Mr.Sumit Kumar Kedia 1,00,000 14. Mr.Sunil Sharma 1,00,000 15. Mrs.Uma Devi Jhawar 1,00,000 16. Mr.Vijay Rajak 2,00,000 Total 21,45,000 In this regard the assessee also submitted confirmation of the loans and also submitted detail of PAN No., Income tax re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the case, the ground raised by the appellant is dismissed." Against the above order the assessee is in appeal before us. 5. The ld. Counsel of the assesee submitted that the assessee has submitted all the relevant details of the loan creditors. Their confirmation has also been given, their PAN Nos. and copy of the Income tax returns filed along with the balance sheet has also been submitted. Hence he submitted that the assessee has duly discharged her onus. He further claimed that the ld. CIT(A) has erred in treating the income or earning of the Loan creditors during that particular year as the only criteria for capacity for loan given, whereas the loan had been given from out of old savings. The ld. Counsel of the assessee further....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted by the Assessing Officer of the creditor but instead of adopting such course, the Assessing Officer himself could not enter into the return of the creditor and brand the same as unworthy of credence. So long it is not established that the return submitted by the creditor has been rejected by its Assessing Officer, the Assessing Officer of the assessee is bound to accept the same as genuine when the identity of the creditor and the genuineness of transaction through account payee cheque has been established. We find that both the Commissioner of Income Tax (Appeal) and the Tribunal below followed the well-accepted principle which are required to be followed in considering the effect of Section 68 of the Act and we thus ....