2019 (3) TMI 1245

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....tted that ground no.1 is not pressed, since, in case of the assessee the assessment for the impugned assessment year has abated. Accordingly, ground no.1, is dismissed as not pressed. 3. In ground no.2, the assessee has challenged the addition made of Rs. 10,18,986, under section 68 of the Income Tax Act, 1961 (for short "the Act"). 4. Brief facts are, the assessee is an individual. He has filed his return of income for the impugned assessment year in regular course on 23rd December 2011, declaring income of Rs. 8,03,488. A search and seizure operation under section 132 of the Act was carried out in the office premises of M/s. Unity Infra Projects Ltd., its directors and other related parties on 10th February 2012. Subsequently, the asses....

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....ansaction was through banking channel. He submitted, the Assessing Officer has treated the unsecured loan availed by the assessee as unexplained cash credit on flimsy grounds that loan confirmations are not in prescribed format and the lenders do not have creditworthiness. Taking us through documentary evidences filed in the paper book the learned Authorised Representative submitted, the assessee has established all the three ingredients, such as, identity of the creditors, genuineness of transactions and creditworthiness of the creditors. Therefore, he submitted, addition made should be deleted. 7. The learned Departmental Representative relied upon the observations of the Assessing Officer and the learned Commissioner (Appeals). 8. We h....

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....uments it is evident that all the loan transactions were carried out through proper banking channel. Moreover, the bank account copies also reveal regular transaction. The Balance Sheet and Capital Account of the creditors also reveal that loan transactions are duly reflected in them. It is evident, the Assessing Officer has not conducted any independent enquiry with the loan creditors or the concerned Assessing Officers where the creditors are assessed or even with the bank to ascertain the genuineness of the loan transactions. No material has been brought on record by the Assessing Officer to prove either the fact that the creditors do not have creditworthiness or the loan transactions are not genuine. Merely on presumption and surmises ....