TaxTMI 
TaxTMI 
2019 (2) TMI 1537
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....n bank account, cheques issued by creditors, their confirmations which proved that they were regular assesses both the creditors having died and shifted to new addresses which were also supplied." 3. Facts of the case, in brief, are that the assessee is an individual and the original assessment was completed u/s 153A on 28.12.2007 at an income of Rs. 8,72,120/- against the returned income of Rs. 1,22,120/- wherein addition of Rs. 7,50,000/- was made as undisclosed income u/s 68 of the IT Act on account of unexplained loan. The assessee had shown to have received loans from two parties i.e. Rs. 2,50,000/- from Shyam Gopal & Sons, 367-A, Katra Hussain, Khari Baoli and Rs. 5,00,000/- from Prem Lata. Against order of the Assessing Officer....
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....they do not keep the records in their custody. The ward Inspector was deputed by the Assessing Officer to serve notice u/s 133 (6) and to verify the presence of the said parties. It was reported that no such persons are found at the given address. On being asked by the Assessing Officer to produce the above parties before him, there was no compliance from the side of the assesee. Due to the failure of the assessee to substantiate the credit worthiness of the loan creditors and genuiness of the transactions, the Assessing Officer invoking the provision of section 68, added the amount of Rs. 7,50,000/- to the total income of the assesee. 3.2 Before CIT(A) it was submitted that assessee had substantiated the identity and credit worthines....
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....endance of the loan creditors and since the lenders are persons of means and assessee had discharged its onus and the amounts are already returned back no addition is called for. 5. However, the Ld. CIT(A) was not satisfied with the arguments advanced by the counsel for the assessee and upheld the action of the Assessing Officer by observing as under :- "7.6 I have carefully considered the facts of the case and the submission of the Appellant. Before the Assessing Officer, the Appellant filed an affidavit sworn in by him, confirmation from Smt. Prem lata of her account with R. L. Traders, cheque issued by Smt. Prem Lata, slip showing deposit of cheque, confirmation from Shyam Gopal & Sons , copy of the bank account showing recei....
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.... 1. CIT vs. Precision Finance Pvt. Ltd., 208 ITR 465 (Cal) 2. Mange Lai Jain vs. ITO, 315 ITR 105 (Mad) 7.8 In the above cases, the Courts have held that mere proof of identity of creditor or that transaction was by cheque, is not sufficient to satisfy the requirement of section 68. 7.9 Similarly, in the following cases, the Apex Court has held that the onus of proving the source of a sum of money found to have been received by an Assessee is on him. 1. Roshan Di Hatti vs. CIT, 107 ITR 938 (SC) 2. Kale Khan Mohammad Hanif vs. CIT, 50 ITR 1 (SC) 7.10 The peculiar facts of this case are different from the case of Sh. Sunil Kumar Bhatia for AY 2003-04. The Assessing Officer has diligently c....
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....two persons. He submitted that Sh. Shyam Gopal had died and his legal heirs have sold the property owned by Shyam Gopal. Purchasers have also sold the above property for which it was not possible to trace out whereabouts of the legal heirs of Mr. Shyam Gopal. He submitted that the three storey building owned by Late Sh. Shyam Gopal substantiates his standing in the society to extend the loan of Rs. 2,50,000/- Similarly, Smt. Prem Lata had given the money out of the loan returned to her by M/s. R. L. Traders to whom the loan was given earlier. He submitted that assessee had filed full details to substantiate the identity and credit worthiness of the loan creditors and genuiness of the transactions. Therefore, the additions made by the Ass....
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....t was not possible on his part to produce the said person before the Assessing Officer for his verification. I find merit in the arguments advance by Ld. Counsel for the assessee. From the details furnished by the assesee in the paper book it can be verified that the loans were obtained through banking channels and has also been returned to the loan creditors in the subsequent years. The confirmations and the affidavits were given earlier before the Tribunal for which the Tribunal had set aside the issue to the file of the Assessing Officer for denove assessment. I find force in the submission of the ld. Counsel for the assesee that both the loan creditors have expired in the meanwhile and therefore it is not possible on the part of the ass....