2026 (7) TMI 1231

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and on facts in sustaining the order of the ld. AO in holding that a sum of Rs. 7,00,000/-out of loan advanced for Rs. 9,00,000/- is unexplained asset of the appellant. 2. That the appellant craves leave to add, amend, alter, with draw any ground of appeal before OR during hearing of the appeal. 3. The solitary issue in the present appeal relates to addition made to the income of the assessee on account of cash loan advanced of Rs. 9 lakhs during the year the source of which allegedly remained unexplained. 4. Ld. Counsel for the assessee, at the outset itself, stated that none appeared before the Ld. CIT(A) on behalf of the assessee and accordingly the Ld. CIT(A) passed the order ex parte. He however, contended that all evide....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ural income of Rs. 65,400/-. 7. Ld. Counsel for the assessee pointed out that, with respect to the source of cash loan advanced to the extent of Rs. 5,30,000/-, emanating from loans taken from six creditors, that the assessee had given all details of the said creditors including their names and addresses, their affidavits, and also the copy of their jamabandis as evidences of their creditworthiness. That despite filing of such evidences, the AO rejected this explanation merely because during investigation conducted on the assessee regarding the source of this cash loan the assessee had not attributed any amount to have been sourced from loans taken from others, but had attributed the entire loan advanced of Rs. 9 lacs to be from his own ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., and also evidenced their creditworthiness by furnishing their jamabandis, I hold that the assessee had discharged its onus to prove the source of cash advanced to the extent of Rs. 5,30,000/-. The AO having not pointed out any infirmity in the explanation of the assessee duly corroborated with the evidences furnished, I hold that there was no case with the AO at all of treating the loan advanced to the extent of Rs. 5,30,000/- as out of unexplained sources. The addition made therefore to the extent of Rs. 5,30,000/-, I hold is not sustainable and direct deletion of the same. 10. With regards to assessee's explanation, of the source of the balance amount of Rs. 3,70,000/- advanced during the year as being out of his own personal savings....