2018 (8) TMI 2127

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....e case are that the assessee is the proprietor of M/s. Ganapati Mini Rice Mills and had taken unsecured loan of Rs. 5 lakh from M/s. Ganapati Mini Rice Mills and Rs.45 lakhs from M/s. Build Ware Infrasteel Pvt. Ltd. Though confirmation and PAN details of lenders were filed before the AO, he was not satisfied with the creditworthiness of the lender companies and made the addition u/s. 68 of the Income-tax Act, 1961 (hereinafter referred to as the "Act"). Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) who was pleased to delete the same. Aggrieved, the revenue is before us. 4. We have heard rival submissions and gone through the facts and circumstances of the case. We note that the assessee is a proprietor of a rice mill ....

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..../- 1,74,859/- 46,74,859/- GANESH TRADELINK PRIVATE LIMITED 22/06/2012 24/05/2013 039390 013058 TOTAL 5,00,000/- 19,216/- 5,19,216/ 7. We note that the AO after examination of creditors' financial status came to the conclusion that the lenders were not creditworthy. This action of AO is flawed as held by Hon'ble jurisdictional High Court in the case of Dataware Pvt. Ltd. Vs. CIT (ITAT No.263/2011, GA No. 2856/2011, dated 21.09.2011), wherein their Lordship held as under: "Both the CIT(A) and the Tribunal below have in details considered the fact that the share application money was paid by account payee cheque, the creditor appeared before AO, disclosed its PAN and also other details of the accoun....