AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 163
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....acts of the case in not appreciating that the assessment order was passed without granting proper and sufficient opportunity to place on record the necessary details as called for and that the AO has shown undue haste in framing the assessment which ought to have been quashed for gross violation of the principles of natural justice. 3. Both the lower authorities have passed the orders without properly appreciating the facts and they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. This action of the lower authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 4. The learned C1T(A) has erred in law and on facts of the case in confirming action of the Id. AO in levying interest u/s.234A/B/C of the Act. 5. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in initiating penalty u/s.271(l)(c) of the Act. 6. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in initiating penalty u/s.....
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....g evidences are now being placed before your Honors as additional evidences substantiating cash deposit in the bank account. Sr.No. Particulars Pgs. of compilation of additional evidences 1. Details of cash received from various person 1-2 2. Copy of confirmations received from whom cash been received, its English translation 7/12 extracts & other evidences. 3-93 3. Copy of cash book 94-100 4.1 The assessee regarding the deposits made through cheques for the sum of Rs. 52,20,923.00 submitted that the transactions were carried out through the banking channel, therefore the question does not arise for making the addition under section 68 of the Act. 4.2 The assessee also submitted that he has fulfilled all the conditions/requirement of section 68 of the Act by furnishing the details of name of the lender, address and copies of confirmation from whom the cash was received. The assessee also claims that the advances provided by the parties are agriculturist. As such they provided advances either from their agricultural income or saving. The assessee in support of his contention files the copies of 7/12 extract and also submitted that some of the loan provider....
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....ision of section 68 of the Act fastens the liability on the assessee to provide the identity of the lenders, establish the genuineness of the transactions and creditworthiness of the parties. These liabilities on the assessee were imposed to justify the cash credit entries under section 68 of the Act by the Hon'ble Calcutta High Court in the case of CIT Vs. Precision finance (p) Ltd reported in 208 ITR 465 wherein it was held as under: "It was for the assessee to prove the identity of the creditors, their creditworthiness and the genuineness of the transactions. On the facts of this case, the Tribunal did not take into account all these ingredients which had to be satisfied by the assessee. Mere furnishing of the particulars was not enough. The enquiry of the ITO revealed that either the assessee was not traceable or there was no such file and, accordingly, the first ingredient as to the identity of the creditors had not been established. If the identity of the creditors had not been established, consequently, the question of establishment of the genuineness of the transactions or the creditworthiness of the creditors did not and could not arise. The Tribunal did not apply its mi....
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....ontributions in IDFC Private Equity Fund-II are all by public sector undertakings. 8.4 However, the genuineness of the transaction is not sufficient enough to absolve the assessee from furnishing other documentary evidence such as identity, creditworthiness and confirmation of the transactions. As such, the confirmation of the transaction is essential to ascertain the fact that the amount received by the assessee represents his loan liability. 8.5 We are also conscious to the fact that the AO during the assessment proceedings has collected the details of the parties to whom the assessee has issued cheques. The AO further had issued notices to them under section 133(6) of the Act for the verification of the transactions. Thus, an argument was raised by the ld. AR that the AO could have collected the details of the parties from whom the assessee has received cheques. But the AO has not done so. However, we are of the view that the inaction of the AO for not collecting the details of the parties from whom the assessee has received cheque does not absolve the assessee from furnishing the details of the parties as discussed above. As such, the liability under section 68 of the Act is....