2021 (4) TMI 1082

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....TO/ AO) for the A.Y. 2010-11 vide order dated 21.012.2016 under section 147 read with section 143(3) of the Income-tax Act, 1961 (hereinafter 'the Act'). 2. The first issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by Assessing Officer treating the loan transaction as unexplained under section 68 of the Act. For this, Revenue has raised the following ground No.1: - "1. Whether on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in holding that mere establishing of the identities of the lenders of loan together with the fact that the transactions were made through cheques could be itself establish the genuineness of the transactions." 3. Brief facts are that ....

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....ceptance and repayment of loan has been through banking channels. The creditworthiness of the lenders can be established from the statements. In the assessment order, the Assessing Officer did not at all discuss the merit of submission made by the appellant and casually brushed aside the details filed by the appellant. Further, the appellant has stated that it had furnished all the relevant details during the course of the assessment proceedings and duly discharged its onus. 4.3.11. The three criteria required for establishing the, genuineness of the loans are identity of the creditor, credit worthiness of the creditor and the genuineness of the transaction. All the 3 criteria have been fulfilled in this case. The party is existing....

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....t is also not clear from the assessment order whether these loan parties are genuine or non-genuine and the amount received are unexplained but how. It is a fact that the assessee has discharged its primary onus by filing all these documents which the Assessing Officer should have verified and examined these parties. Even now before us, the learned Sr. DR could not controvert the basic facts of the case except relying on the case law of Pawankumer M Sanghvi vs. ITdo in ITA No. 2447/Ahd/2016 and Pr. CIT vs. NRA Iron & Steel (P) Ltd. (2019) 110 taxmann.com 491 (SC). Without pointing out the factual aspect of this case, we cannot take it as legal proposition laid down in the given facts. Hence, we are of the view that there is no infirmity ....