TaxTMI 
TaxTMI 
2022 (4) TMI 1310
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....s furnished in May, 2017 only i.e., post assessment proceedings, the Ld CIT(A) ought to have provided an opportunity to the Assessing Officer before admitting such additional evidence. As Sri P. Ravi was stated to be a small time real estate broker and received the impugned loan amount in his bank account from another creditor as stated by Sri Abhishek Mundra, his creditworthiness remains unproved to the satisfaction of the Assessing Officer. Further as Sri P.Ravi sought adjournments and did not appear before the AO, it is clear that the assessee failed to prove the identity, creditworthiness of the creditor and thereby the genuineness of the transaction. 3. As Sri Abhishek Mundra representing his HUF from which the assessee received Rs. 70,00,000 as interest free loan could not explain the reasons for borrowing sums from his individual and lending to the assessee without obtaining any security as evident from his statement, it cannot be said the assessee proved the creditworthiness of the loan creditor and consequently the genuineness of the transaction. Thus, the Ld CIT(A) ought to have upheld the addition made by the Assessing Officer. 4. As Sri Abhishek Mundra representing ....
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.... 5. Mundhra Bullion Pvt. Ltd. 369 Lacs The credit received from parties listed at serial no. 1 to 2 has been accepted by Ld. AO. However, the subject matter of dispute before us is credit received from parties listed at serial nos. 3 to 5. 4.2 During assessment proceedings, the assessee filed confirmatory letters. In response to summons issued by Ld. AO, Shri P.Ravi confirmed the transactions. However, the copy of ITR, Bank statement or Balance Sheet was not filed. The assessee maintained that the moneys were received through banking channels and the genuineness of the transactions stood explained. However, rejecting the same, Ld. AO held that the credit received from Shri P.Ravi was non-genuine. 4.3 Shri Abhishek Mundhra filed confirmatory letters along with copy of Income Tax Return, Balance Sheet, Computation of Income and Bank Statement etc. However, it was noted that the moneys were deposited in the loan creditor account and on the same day, the same was given as loan to the assessee. Therefore, the amount so received was held to be unexplained cash credit. 4.4 The Managing Director of last creditor i.e., Mundhra Bullion Pvt. Ltd. appeared before Ld. AO and produced copy....
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....ek Mundra, HUF i. Copy of PAN -AALHA8181K ii. Copy of confirmation of balance for the year ending 31.03.2014 and 31.03.2015 (few repayments can be seen in subsequent AY 15-16) and iii. Copy of his ITR V for the AY 14-15 and iv. Copy of his Axis Bank statement (Account No.238380, Sowcarpet Branch, Chennai-19) which reflect the transaction. M/s. Mundra Bullion Pvt. Ltd i. Copy of PAN AAFCM0519C ii. Copy of confirmation of balance for the year ending 31.03.2014 and iii. Copy of his ITR v for the AY 14-15 and iv. Copy of its Axis Bank statement (Account No.10511) which reflect an amount of Rs. 80 Lakhs on 19.03.2014 and Rs. 175 Lakhs on 25.03.2014 v. Copy of its IDBI bank account which reflect an amount of Rs. 90 Lakhs on 19.03.2014 and vi. Copy of Standard Chartered Bank No.42580 which reflect an amount of Rs. 24 lakhs on 19.03.2014. It was also noted that the moneys were advanced by these parties towards purchase of property situated at 110/82, P.S.Sivasamy Salai, Mylapore, Chennai in a joint venture arrangement with the assessee.These parties were disclosed under the head Current Liabilities / Sundry Creditors. The amount received from such creditors had strai....
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....ee is a company and the sum so credited consists of share application money, share capital, share premium etc., the explanation furnished by the assessee shall be deemed to be not satisfactory unless the person in whose name such credit is recorded also offers an explanation about nature and source of sum so credited and such explanation is found to be satisfactory. However, this proviso is applicable only in the case of credit by way of share application money, share capital, share premium etc. In other words, in case of unsecured loans, the assessee is required to prove the source of credits only besides establishing the identity of the lender and genuineness of the transactions. In such cases, the assessee is not required to prove the source of source as held by Hon'bleBombay High Court in its decision tilted as Gaurav Triyugi Singh V/s ITO (ITA No.1750 of 207, dated 22/01/2020) which also consider its earlier decision of Pr. CIT V/s Veedhata Towers Pvt. Ltd. (2018; 403 ITR 415). It was held that there was no requirement under law to explain the source of source. Once the identity of the lender as well as their creditworthiness is established by the assessee and the transactions....