TaxTMI 
TaxTMI 
2023 (9) TMI 891
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....the first appeal. The additions made were on account of the unsecured loans returned by the assessee, having not been proved with substantiating evidence. 2. The questions of law coming forth from the order of the Tribunal are re-framed as follows :- (i) Whether the order of the Tribunal confirming the addition of Rs. 9,00,000/- representing unsecured loans taken from three individuals was passed in total disregard of the evidence produced on this account and in contravention of the provisions of the Income Tax Act, 1961 as also the decisions on this aspect? (ii) Whether the Tribunal was justified in not adjudicating the ground nos. 13 and 14 of the memo of appeal which challenged dis-allowance of proportionate interest paid against t....
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....00/- from Mr. Syed Aijaz Alam. 5. Learned Senior Counsel for the assessee Shri Ajay Kumar Rastogi from the records pointed out that there was sufficient evidence before the Assessing Officer, which should have restrained him from making the additions. Ms. Gunmala Devi though not appeared in person; from her account statement, it is evident that the unsecured loan of Rs. 5,00,000/- was from the said person to the assessee. The account books of both the others were also produced and they had sufficient explanation for the source of income. When the parties from whom the unsecured loans were produced and they affirmed the loans as also substantiated it by the transactions carried out through a bank; there is no scope for an addition. The lear....
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....nding precedents of the Hon'ble Supreme Court, we respectfully notice the decision cited on behalf of the Revenue. In Kale Khan Mohammad Hanif (supra), it was declared that the onus of proving the source of a sum of money found to have been received by an assessee, is on the assessee. Once the assessee has submitted the documents relating to the identity of the creditor with his creditworthiness and the genuineness of transaction, the Assessing Officer must conduct an enquiry and the addition can be made if the assessee is not able to provide a suitable explanation of the nature and source. It was categorically held that there is no further burden on the Revenue to show that the income is from any particular source and if the source has not....
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....e and acceptable explanation as regards the sums found credited in the books maintained by the assessee. ... The burden is on the assessee to take the plea that, even if the explanation is not acceptable, the material and attending circumstances available on record do not justify the sum found credited in the books being treated as a receipt of income nature . (emphasis supplied)" 9. It is with these principles in mind, the specific facts of the instant appeal have to be examined to answer the questions of law raised. 10. The loan from Ms. Gunmala Devi, as has been asserted by the assessee, was Rs. 5,00,000/-. It was also seen from the passbook produced of the said person that a cheque was issued in the name of the assessee-firm. Th....
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.... by the assessee. 11. As far as Mr. A. P. N. Singh is concerned, the loan received was an amount of Rs. 3,00,000/- and the notice issued under Section 133(6) to the creditor was not complied with. On the assessee being informed of the non-compliance, a return of income and bank statement of the creditor was produced wherein there was a credit entry of Rs. 3,00,000/-, immediately preceding the withdrawal of the loan. Mr. A. P. N. Singh also appeared before the Assessing Officer and submitted that the deposit was out of a sale consideration received, on sale of land at Muzaffarpur. The creditor had no answer when he was confronted with the fact that the sale transaction is not reflected in his return of income, submitted by the assessee here....