TaxTMI 
TaxTMI 
2012 (7) TMI 1180
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....Rs. 7,40,000/- made by the AO on account of unexplained cash introduced in capital account and delete addition for unexplained cash credits u/s. 68 of the Act for Rs. 27,87,000/-. 2. In accepting the erroneous and incorrect remand report of the AO wherein the AO incorrectly observed that mere assess accessibility to tax proves creditworthiness and genuineness of the loan transactions. The Ld. CIT (A) ought to have applied his own mind in the matter. 3. In admitting the fresh evidences in violation of Rule 46A of the Income Tax Rules, 1962 in as much as no opportunity was provided to the AO for admission of fresh evidences. This fact is evident from letter dated 19.10.2010 of CIT (A) wherein in para 4 he admitted ....
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....and report dated 09.11.2010 (PB-45). The ld. CIT(A), on the basis of additional evidences, material on record and the remand report of the AO, considered both the additions. The ld. CIT (A) found that on the issue of cash credits, affidavits, intimation u/s. 143(1) of the IT Act, copy of ledger account of the creditors in the books of the assessee etc., were filed and the AO in the remand report noted that they are assessed to tax and that the assessee has produced documentary evidences in respect of identity of creditors, their creditworthiness and genuineness of the transaction and the ld. CIT (A) may consider the appeal and may draw necessary inferences in this regard. The ld. CIT (A) found that the AO in the remand report did not give a....
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....issions made before the authorities below and referred to paper book page 53, which is capital account of the assessee as on 31.03.2007, in which her capital brought forward from earlier year was Rs. 10,38,004/-. He has submitted that no fresh capital was introduced during the assessment year under appeal. Therefore, addition was rightly deleted by the ld. CIT (A) and further, the amount was received by the assessee in earlier year on return of the amounts from several debtors. Therefore, the same was available to the assessee and source of the opening capital is also explained. As regards the cash credits in the name of four persons are concerned, he has referred to paper book page No. 8, which is order sheet noted by the AO in w....
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....roduced in the capital account of the assessee. No specific amount of Rs. 7,40,000/- has been introduced during the assessment year under appeal. The assessee gave sufficient evidence of the persons, who have returned the amount to the assessee and their statements have been recorded, in which they have confirmed the return of amount to the assessee. The same, therefore, supports the case of the assessee. As regards the cash credits, the assessee filed sufficient evidence to show that all the transactions have been routed through the banking channels and all the creditors are assessed to tax and have confirmed giving of loan to the assessee. All the documentary evidences are filed in the paper book including the confirmation and affida....