TaxTMI 
TaxTMI 
2023 (10) TMI 1191
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....edings, the assessee was failed to prove the unsecured loan taken from Mr. Ishwarbhai D. Patel, Magob, Surat is a genuine transactions. 2. In addition to the ground no.1 on the facts and in the circumstances of the case and in law, the CIT(A) has erred in deleting the addition of Rs. 1,00,00,000/- made u/s 68 of the I.T. Act without appreciating the fact that during the course of the assessment proceedings, to prove the transaction of loan, the assessee has simply stated that the loan giver has expired and uploaded a scanned copy claimed as confirmation from the son of the deceased lender without name, PAN No., address etc. of the so called confirming party and also not attended in pursuance to summons issued u/s 131 to the son of the so called lender to verify the genuineness of the transaction/confirmation. 3. On the facts and in the circumstances of the case and in law, the CIT(A) has erred in deleting the addition to Rs. 16,02,000/- made on account of agriculture income simply relying upon the submission of the assessee and without appreciating the facts that during the assessment proceedings, the assessee has failed to submit, any sales bill and any other evidences to prov....
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....t the year-end also. Mere repayment in future is not a valid argument for absence of adverse inference if the genuineness of the transaction and the creditworthiness of the party has not been satisfactorily established. You are requested to show cause why the sums of Rs. 1,00,000/- should not be assessed as your unexplained income." 5. The assessee has submitted and uploaded response to the notice. However, assessing officer observed that the assessee had claimed to have accepted unsecured loan of Rs. 1,00,00,000/- from Mr. Ishwarbhai D. Patel, Magob, Surat, which was through banking channels and necessary bank statements and confirmation of the person who had given the loan was produced. As the person who had given the loan had expired when the matter came up before the assessing officer, in assessment proceedings and hence, no one could appear before the assessing officer, except to file written submission before the assessing officer. Accordingly, the assessing officer treated Rs. 1,00,00,000/- , as cash credit u/s 68 of the Act, as the assessee had not satisfactorily explained the genuineness and creditworthiness of the person who had given the loan. 6. Aggrieved by the order....
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.... of sale consideration from sale of property of Rs. 3,32,63,600/- during the period to prove the credit worthiness. (4) Copy of PAN card of the loan giver. (5) Copy of death certificate of the loan giver. The assessing officer has stated in the order that the assessee has nothing to say in reply to the show cause notice but assessing officer has completely failed to consider the computation of income, acknowledgement of Return of Income and Copy of PAN card of loan giver filed in response to show cause notice. However, ld CIT(A) has considered these documents and deleted the addition therefore ld Counsel contended that order passed by the ld CIT(A) may be upheld. 10. We have heard the Learned Counsels appearing on behalf of the respective parties, at length. We note that during the appellate proceedings the assessee submitted the sale document of land executed between Kesubhai and Shri Ishwarbhai, duly mentioning that the sum of Rs. 1,42,72,860/- which was paid to Shri Ishwarbhai by Kesubhai towards the purchase of property. Thus, the allegation of the assessing officer that Shri Kesubhai has acted as a conduit for transfer of amount of Rs. 1,42,72,860/- and has no credit wor....
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....h Court in the case of CIT Vs Patel Ramniklal Hirji 41 Taxmann.com 493 (Guj.) 2014. In the said decision, the High Court held that where the assessee received loan through account Payee Cheques and in support of loan transaction if he submits copy of books of accounts, bank statement, ITR of the lender, transaction in question was to be regarded as genuine and loan amount could not be added to assessee's taxable income u/s 68 of the IT Act. The ld CIT(A) noted that from the above facts, the creditworthiness of the loan giver Late Ishwarbhai D. Patel has been established. The transactions in question are through banking channels wherein the loan has been received by the assessee through banking channels and even repaid subsequently through banking channels which proves the genuineness of the transaction. Hence, the ld CIT(A) therefore deleted the addition made by the AO u/s 68 of the Act. On a careful reading of the Ld.CIT(A) order and the findings thereon, we do not find any valid reason to interfere with the decision and findings of the Ld.CIT(A) therefore we dismiss ground No.1 and 2 raised by the Revenue. 12. In the result, ground No.1 and 2 raised by the revenue are dismis....