2019 (4) TMI 1369

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....the Act") dated 15/02/2013 relevant to Assessment Year (AY) 2010-11. 2. The assessee has raised following grounds of appeal:- 1. The CIT(A) has erred both in Law and in fact in confirming the applicability of Sec.68 of the Act thereby confirming addition of Rs. 8,20,000/- made by the Assessing Officer. It is submitted that your Appellant had received amount by Cheque from following persons. (a) Mrs. Laxmi R. Rs. 8,00,000/- (out of Rs. 17,00,000/-) (b) Alok Chaudhry Rs. 20,000/- Your Appellant submits that the above Depositors are known persons, their identity has been established and their creditworthiness is proved beyond doubt and it being a genuine transaction the amount is not liable to be treated as Cash Credit u/s.68 of the....

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....ank statement, wherein two cheques of Rs. 4 lakhs each dated 22.05.2009 was reflected, i.e., the payment to the assessee. 5.1. However, the Assessing Officer found that the assessee has not furnished the details of source and nature of receipts from Shri Venketaraman. Therefore, the Assessing Officer treated the same as unexplained cash credit u/s 68 of the Act and added the sum of Rs. 8 lakhs to the total income of the assessee. 6. The aggrieved assessee preferred an appeal to the Ld.CIT(A). The assessee before the Ld.CIT(A) submitted that he had filed the copy of confirmation, bank statement and Form 26AS of Shri Veketaraman. Therefore, the assessee claimed that the identity and genuineness of the transactions could not be doubted. 6.....

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....n pages 25 to 37 of the paper-book. 8.1. The Ld.AR in support of assessee's claim also filed the Affidavit to justify that he has received the loan of Rs. 8 lakhs from Shri Venketaraman. The copy of the Affidavit is also placed on record. 9. On the other hand, the Ld.DR vehemently supported the orders of the authorities below. 10. We have heard the Ld. Representatives appearing for the respective parties. We have perused the relevant materials available on record. From the preceding discussion, we note that the addition of Rs. 8 lakhs were made to the total income of the assessee by the authorities below by observing that the conditions stipulated u/s 68 of the Act were not complied. 10.1. On perusal of the orders of the authorities bel....

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...., but cannot be asked to prove the source of the source." 10.3. Similarly, we also find support and guidance from the judgment of Hon'ble Jurisdictional High Court in the case of Rohini Builders 127 Taxman 523, where the head note reads as under: "Section 68 of the Income-tax Act, 1961 - Cash credits - Assessing Officer made addition of Rs. 12,85,000 as unexplained cash credits in respect of loans taken by assessee from 21 parties - Assessee had discharged initial onus by providing identity of all creditors by giving their complete addresses, GIR numbers/permanent account numbers and copies of assessment orders wherever readily available - Assessee had also proved capacity of creditors by showing that amounts were received by account pay....