2012 (8) TMI 1180

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....e Assessing Officer on account of unexplained cash credit. 3. The facts in brief are that during the course of assessment u/s.143(3) of the I.T.Act,1961, the Assessing Officer found that the assessee had received loan amounting to ₹29,00,000 spread throughout the Assessment Year under consideration in denomination of ₹20,000 or less from different persons being relatives and staff. The Assessing Officer observed that despite several opportunities the assessee failed to furnish the complete details of the transactions including loan confirmation accounts and documents substantiate the creditworthiness of the creditors. He further observed that taking into account the fact that the loan has been received in cash, not only the ide....

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.... may not be valid ground to doubt about the transactions. The interest free loan was received from friends, relatives and staff at the time of paucity of funds and only for the running and survival of the business. He contended that the loans were refundable and it is surprising to note that the enforceable liability is taken into income by the A.O. The assessee has come out with necessary supporting materials, documentary evidences and individual confirmations. Neither any contradiction, nor any in-genuineness could be substantiated by the CIT(A) except merely disbelieving the assessee's submissions and evidences. Principle of preponderance of probability has no role to play in assessment matters which are only to be decided on 'evidences"....