2020 (5) TMI 297

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....reon in these three assessment years. Allowability of the same are the issues in these appeals. 2. There are three appeals under consideration involving A.Ys. 2008-09, 2009-10 and 2010-11. ITA No.1234/PUN/2019 for A.Y. 2008-09 is the main appeal. Assessee took the loan of Rs. 40 lakhs in this assessment year. However, the Assessing Officer rejected the said claims and added the loan as well as the interest u/s 68 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). Interest claimed on the said loans is common in all these appeals and the same is a common ground. 3. Grounds for A.Y. 2008-09 are extracted here as under : 1. In facts and circumstances prevailing in the case and as per provisions and scheme of the Act it be h....

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....n of Rs. 48,69,375/-). Smt. Sunita Kumbhar transferred funds out of her sale proceeds to her husband's bank account with Pen Co-Operative Urban Bank Ltd. Out of his funds, Rs. 40 lakhs was transferred to the account of the assessee as loans against the interest. As per the assessee, the sources of loans stands explained and therefore, no addition is called for. There were cash deposits in the account of Mr. D.S. Kumbhar to the tune of Rs. 13 lakhs. However, considering the absence of non-filing of the nature of returns by the lenders, the Assessing Officer treated the transaction as non-genuine transaction and the lender is not creditworthy. The AO invoked the provisions of section 131 of the Act too and recorded statement of Shri Dinkar Sh....

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....the orders of Assessing Officer as well as CIT(A). Referring to the creditworthiness of Shri D.S. Kumbhar, the ld. DR submitted that first installment of loan of Rs. 20 lakhs was paid to assessee on 20.09.2007 (page 1 of Paper Book) and the same is out of sale proceeds of land sold by Shri Dinkar Shankar Kumbhar for sum of Rs. 20,05,938/-. Further, there is credit of Rs. 20 lakhs from his wife's account (Vishal Transport). The ld. DR has no argument on this part of the transaction. However, referring to second payment of Rs. 20 lakhs to the assessee on 26.09.2007, ld. DR submitted that the assessee deposited cash of Rs. 8 lakhs on 26.09.2007 and Rs. 3 lakhs on 26.09.2007. Shri D.S. Kumbhar failed to explain the source of these cash deposits....

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....eposit of Rs. 11 lakhs (Rs. 8 lakhs + Rs. 3 lakhs), there is requirement of investigation into the source of cash deposits in the bank account of Shri Dinkar Shankar Kumbhar, Prop. Shri Swami Bricks. 11. Accordingly, we are of the opinion that the matter should be remanded to the file of Assessing Officer for verification of assessee's arguments i.e. cash withdrawals from the account of the assessee constitutes source of cash of Rs. 11 lakhs. The Assessing Officer shall give reasonable opportunity of hearing to the assessee and in case the assessee files any evidences, explanations, etc. should accept the same and make re-assessment on this issue. Thus, grounds raised by assessee are partly allowed for statistical purposes. 12. The facts ....