TaxTMI 
TaxTMI 
2025 (6) TMI 1462
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....usiness of trolley manufacturing in the name of M/s. Vandana Engineering and earn partner remuneration and interest from partnership firm M/s. Vandana Agro Industries and M/s. Vandana Tractors. The assessee had e-filed return of income for A.Y.2013-14 declaring an income of Rs. 3,89,080/-. Information was received from the office of the erstwhile ACIT-2(1), Bilaspur that during the scrutiny assessment proceedings in the case of M/s. Vandana Trailors and Body MFG Pvt. Ltd., the assessment for A.Y.2016-17 stated that the assesse had advanced an unsecured loan of Rs. 71,50,602/- to M/s. Vandana Trailors and Body MFG Pvt. Ltd during the F.Y.2012-13 relevant to A.Y.2013-14. In this regard, the assessee was requested to establish the nature, sour....
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....y meagre balances in their respective accounts before and after the transaction. That it was held by the A.O therefore, such loan creditors were mere accommodation entry provider. At the stage of the A.O, the assessee could only furnish balance sheet of M/s.Girdhar Jaiswal, HUF but with regard to the other loan creditors, the assessee could not establish the source of cash nor could file balance sheet in respect of those parties. That in the given factual matrix, out of the total Rs. 37 lacs of loan given, the A.O accepted identity, creditworthiness and genuineness in respect M/s. Girdhar Jaiswal, HUF. Accordingly, the A.O allowed an amount of Rs.7 lacs and balance amount of Rs. 30 lacs was held as unexplained cash credit within the meaning....
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....is seen that all lenders have deposited cash into their respective Bank accounts with very meagre balances before and after the transactions on the same day on which loan amount was to be transferred. However, source of such cash cannot be justified on the basis of financials and return of income placed on record. Thus, the above lenders are merely accommodation entry providers, who routed cash through such transactions. Hence, genuineness of transaction remains unjustified. * Further, the contention of appellant that the Assessing Officer did not point out any defects or discrepancies in the documentary evidences placed on record is not tenable. The Assessing Officer has rightly pointed out lack of genuineness and creditworthiness....
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....t justify the sum found credited in the books to be treated as a receipt of an income nature. The burden in this regard was on the appellant. No such attempt had been made during appellate proceedings. * The initial onus cast upon the assessee to prove all the three limbs of section 68 has been discharged, but the same are not found satisfactory by the Assessing Officer. The continuous assertion of appellant that it has discharged onus cast upon him is of no avail, if the documents placed on record prove the contrary. It is evident from the assessment order, that all the observations of the Assessing Officer are based on examination of documents available on record, appreciation of facts and surrounding circumstances. The Hon'b....
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.... P. Mohanakala [2007] 291 ITR 278/161 Taxman 169 clearly held that in case where explanation offered by the assessee about the nature and source of sums found credited in the books of account is not satisfactory then same would constitute prima-facie evidence against the assessee. The main evidence to understand the creditworthiness and genuineness of the transaction is the books of account and balance sheet of the lenders who are providing funds to the assessee for making unsecured loan. That as evident at the stage of the A.O, the balance sheet of M/s. Girdhar Jaiswal, HUF was provided, to which, extent relief was given by the A.O to the assessee. However, regarding the remaining lenders, the amounts were added in the hands of the assesse....