TaxTMI 
TaxTMI 
2019 (9) TMI 291
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....stified in deleting the addition made by A.O. on account of unexplained cash credit u/s 68 of Act on the assessee's affidavit when the assessee could not prove the basic condition i.e. identity of the actual loan creditor; genuineness of the source, and capacity / credit worthiness of the creditor. 2. On the facts and in the circumstances of the case and in law, the CIT(A) was not justified in deleting the addition made by the AO when the Assessing Officer could not get an opportunity to verify the source of the actual lender. 3. The appellant craves leave to add, alter, amend or delete any of the above grounds of the appeal at the time of proceedings before the Hon'ble Tribunal which may please be granted. 4. The appellant prays t....
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.... books of account, the creditor was Mr. Ramesh Havelel but during scrutiny proceedings, the assessee claimed it was loan actually given by Mr. Prafulla Anil Madiwale. In order to ascertain identity of the said person, Summons under section 131 of the Act were given to Mr. Ramesh Havele to attend the office along with documents but he never appeared before the Assessing Officer. No response was made to the Assessing Officer and the assessee submitted the bank documents of Mr. Prafulla Anil Madiwale to prove its case. The Assessing Officer from the perusal of bank account of Mr. Prafulla Anil Madiwale noted that money was actually received from Mr. Ramesh Havele and amount was transferred to assessee's account. The Assessing Officer was of th....
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....omputation of income, bank pass book, etc. and he was also asked to establish source from which he had paid the said amount. However, he neither attended the office nor furnished any submissions. The assessee was also asked to prove the genuineness and creditworthiness of unsecured loan creditor and the reply is reproduced under para 6.7. The assessee explained that transactions were in fact with Madiwale group and entire amount was received through cheques. The cheques and amounts both were tallied and hence, it was stated that transactions were genuine. The Assessing Officer did not accept the explanation of assessee on the ground that creditworthiness, genuineness of Mr. Ramesh Havele and Mr. Prafulla Anil Madiwale was not proved and hen....
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....which is self serving document and since the ingredients of section 68 of the Act have not been fulfilled, the addition needs to be upheld in the hands of assessee. 9. The learned Authorized Representative for the assessee on the other hand, pointed out that the cheques have been received from bank account of Mr. Prafulla Anil Madiwale and by an error in the books of account of assessee the name of Mr. Ramesh Havele was posted by the accountant, which error was corrected before assessment proceedings. He further stressed that source of source cannot be asked. 10. We have heard the rival contentions and perused the record. The issue arising in the present appeal is against addition made under section 68 of the Act. There are three ingredi....