TaxTMI 
TaxTMI 
2022 (2) TMI 913
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....Income Tax Act, 1961 (hereinafter referred to as "the Act"), dated 26.12.2016. 2. Grounds of appeal raised by the assessee are as follows: "1) On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs. 10,00,000/- on account of unsecured loan treated as cash credit. 2) It is therefore prayed that the above addition made by the assessing officer may please be deleted. 3) Appellant craves leave to add, alter or delete any grounds(s) either before or in the course of hearing of the appeal." 3. The appeal filed by the assessee for Assessment Year 2014-15, is barred by limitation by 28 days....
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....se findings, the AO concluded that the creditworthiness of the two parties giving unsecured loans to the appellant was doubtful and unproved and the amount of Rs. 10 lacs was added as unexplained cash credit. 5. On appeal, ld CIT(A) confirmed the action of the assessing officer. Aggrieved, the assessee is in appeal before us. 6. Shri Rasesh Shah, Learned Counsel for the assessee pleads that in the assessment year under consideration, the assessee firm had taken unsecured loans from the following persons, namely, (a) Shri Kantilal B. Shah Rs. 6,00,000/- and (b) Shri Dineshkumar B. Shah Rs. 4,00,000/-. Both these persons are brothers and they had given temporary loan for about three months to the assessee firm for the immediate fund require....
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....ledger copy of accounts with confirmation, (ii) Acknowledgement of return of income with computation of income and (iii) copy of bank passbook of the lenders. Therefore, based on these facts, the ld Counsel claims that addition made by the assessing officer may be deleted. 9. We note that assessing officer had issued summons u/s 131 of the Act to both these person and in response to the summons, Shri Dinesh Kumar B. Shah attended and furnished the necessary details as called for by the assessing officer (AO). His statement was recorded u/s 131 of the Act on 17.12.2016 and in the statement recorded, he stated that he himself and his brother Shri Kantilal B. Shah along with their family and parents are staying together in a joint family and ....
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....ote that both the Lenders are assessed to tax and the loan is taken through banking channel by RTGS and there is a categorical admission of loan being given to the assessee firm out of own funds and through banking channel and the same has been accepted by the AO also. In this regard reliance can be placed on the judgment of jurisdictional Gujarat High Court in the case of Dy. CIT v. Rohini Builders. (256 ITR 230) (Guj) where it was held that no substantial question of law arises where assessee established identity of creditors by giving their complete addresses, GIR numbers/PAN as well as confirmation along with copies of assessment orders wherever available. Moreover, it is a settled law that the assessee need not prove the "source of sou....