TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 258
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....ch 20, 2015, passed by the learned Assessing Officer, Ward 8(1), Pune are bad in law and void ab initio. 2 Without prejudice to the above, the learned CIT(A) erred in law and on facts in confirming the addition of Rs. 86,13,147/- on account of unsecured loans/cash credits by treating the same as unexplained, despite the appellant having discharged the initial onus cast upon him. 3 The learned CIT(A) failed to appreciate that the identity and genuineness of the lenders were never in dispute and stood supported by confirmations/affidavits, ledger extracts and reconciliation, and therefore the impugned addition is unsustainable in law. 4 The learned CIT(A) erred in law and on facts in sustaining the addition of Rs. 26,74,115/- pertaining to Mrs. Usha Chander / V. Chander, without appreciating that the said amount represented duly explained opening balances, advances and reconciled entries, including amounts routed through related account heads, all of which were recorded in the regular books of account of the appellant. 5. The learned CIT(A) erred in sustaining the addition of Rs. 26,74,115/-related to Mrs. Usha Chander / V. Chander, without conside....
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.... u/s. 143(2) and 142(1) of the Act. During the course of assessment proceedings, ld. Assessing Officer observed that unsecured loans are appearing in the balance sheet. On due examination of the details of unsecured loans, ld. Assessing Officer has made observations doubting the unsecured loans from Ms. Usha Chander and Mr. Nagraj Pallakkal (Nambiyar). Confirmations from the cash creditors were called for. However, there were certain discrepancies in the figures mentioned in the confirmations vis-à-vis the amount of loan taken during the year. Ld. Assessing Officer observed that the loans from the alleged two parties were taken in the preceding years also. However, for the year under consideration, due to mismatch in the figures given in the confirmation of Ms. Usha Chander and in the case of Mr. Nagraj Pallakkal (Nambiyar) the specific details of the loans given were not appearing but a general statement of having given the unsecured loans to the assessee were appearing. Further details could not be filed by the assessee. Ld. Assessing Officeer concluded the assessment proceedings by making addition u/s. 68 of the Act for the alleged unsecured loans of Rs. 26,74,11/- and Rs....
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....consideration also. He also made reference to the details furnished in the paper book running into 44 pages. He also submitted that copies of bank statements have been called for from the alleged creditors and assessee is pursuing but till date those details have not been received. He also submitted that the cash creditors have duly replied to the letters issued by the Assessing Officer and have confirmed the transactions of having given unsecured loans to the assessee. 6. On the other hand, ld. DR vehemently argued supported the order of ld.CIT(A). 7. We have heard the rival contentions and perused the record placed before us. Assessee is aggrieved with the finding of ld.CIT(A) confirming the addition for unsecured loan at Rs. 86,13,147/- made by the Assessing Officer invoking section 68 of the Act in case of the following two parties : Sl.No. Name of the Cash creditor Amount 1 Ms. Usha Chander Rs.26,74,115/- 2 Mr. Nagraj Palakkal (Nambiyar) Rs.59,39,032/- 8. Section 68 of the Act has a direct bearing on the issue under consideration and the same is reproduced below : "68. Cash Credits. Where any sum is found credited in the bo....
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....e and source but then the question comes what parameters needs to be followed by an Assessing Officer to get satisfied. There is no standard procedure provided under the Act as per which the Assessing Officer has to follow step by step and it always depends on the facts and circumstances of the case based on which a particular Assessing Officer or Revenue authority can get satisfied with the details. In this procedure, once the assessee furnishes some details, ld. Assessing Officer has to bring forth the discrepancy in such details or ask for certain more details which are necessary for explaining the nature and source of the alleged sum. 10. Now we examine the facts of the present case cash creditor and the details furnished by the assessee to explain the credits in order to satisfy the Assessing Officer. Ms. Usha Chander : It is borne out from the record that Ms. Usha Chander has not given unsecured loan to the assessee for the first time and in the past also unsecured loans have been given and the opening balance as on 01.04.2011 is Rs. 9,61,985/-. During the year under consideration the unsecured loan of Rs. 25.00 lakh received from Ms. Usha Chander has been accepted to b....
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....s of Ms. Usha Chander and genuineness of the transaction by placing all details including declaration on stamp paper given by Mr. Usha Chander and further the unsecured loans received during the subsequent year have also been accepted by the Revenue authorities and no additions have been made. We therefore reverse the finding of ld.CIT(A) and delete impugned addition u/s. 68 of the Act at Rs. 26,24,115/- for the alleged loan received from Ms. Usha Chander. Mr. Nagraj Palakkal (Nambiyar) : We note that Mr. Nagraj Palakkal is a non-resident Indian and has also filed a declaration placed in the paper book pages 14 and 15 and though he holds Indian Passport but he is a resident of Bahrain holding CPR Number 72014119 and resident of Zinj, Manama, Kingdom of Bahrain. The genuineness of the certificate issued by Mr. Nagraj Palakkal is not in dispute and going through the contents of the certificate it emerges that he is engaged in the Hotel Industry business for past many years. He has given unsecured loans to the assessee in the past as well as during the year. We observe that when the information was called for by the Assessing Officer regarding the alleged unsecured loan received by....