TaxTMI 
TaxTMI 
2011 (9) TMI 1209
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....ion 143(3) of the Income-tax Act, 1961. 2. The only grievance of the Assessee relates to addition of Rs. 1 lakh on account of loan received from Shri Manish Jain. 3. Rival contentions have been heard and records perused. During the course of assessment, the AO added an amount of Rs. 1 lakh received from Shri Manish Jain Under Section 68 of the Act by observing that the Assessee has furnished....
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....n the responsibility of the Assessee firm is over. The Assessee firm cannot ask the person who makes investment, where the money invested is properly taxed or not. If that person owns the entry then the burden of the Assessee firm is discharged. It is open to the AO to undertake further investigation with regard to that individual who has deposited the amount . Reliance was also placed on the deci....
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....g the Assessee's explanation, AO must make proper enquiries and in the absence of proper enquiries, addition cannot be sustained. 5. On the other hand, the ld. Senior D.R. relied on the orders of the authorities below. 6. We have considered the rival contentions, carefully gone through the orders of the authorities below and found that the addition was made in respect of loan of Rs. 1 la....
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....nk statement showing the credit balance source from where cheque was issued was also placed before the lower authorities. Before issue of the cheques, there was sufficient credit balance in the account of the loan creditor. Thus, receiving loan by account payee cheques also establishes genuineness of the transaction and sufficiency of the Bank balance before issue of cheques establishes creditwort....