COMMISSIONER OF INCOME TAX Vs. DEEN DAYAL CHOUDHARY

JUDGEMENT

(1.) Instant IT Appeal under section 260A of the IT Act, 1961 has been preferred by the appellant-Revenue assailing order dated 14th Nov.2014, passed by the Tribunal, Jaipur. It relates to asst. yr. 2008-09.

(2.) Brief facts noticed for disposal of the instant appeal are that the respondent-assessee derives income by way of activities of construction, builders and developers. During the course of assessment proceedings, the AO noticed that the assessee had taken unsecured loans from various persons and desired the assessee to place on record confirmations with addresses, permanent account number, bank account details and copies of returns filed by the person giving loans. The confirmations as desired by the AO was submitted. Thereafter, the AO, being not satisfied, issued summons under section 131 to ten persons and their statements were recorded. The AO was not satisfied with the three cash credits in the name of Shri Banshilal son of Shri Lal Ram, village Asarpura, Tehsil Sanganer who deposited an amount of Rs. 25 lac with the assessee; Shri Kana Ram Agarwal who deposited an amount of Rs. 45 lac and Shri Kailash Chaudhary who deposited an amount of Rs. 20 lac and after recording of the statements, the AO came to the conclusion that genuineness and creditworthiness of the cash credit was not proved though identity was established and accordingly intended to add the said amount by invoking provisions of section 68. The assessee came with the plea that the entire credits are genuine, identity has been established so also when the amount is advanced through account payee cheques and the said creditors are assessed to income-tax since long, the creditworthiness and genuineness is also proved. However, the AO, noticing some discrepancies in the statements recorded, made an addition of Rs. 90 lac relating to three creditors.

(3.) The said assessment order was assailed before the CIT(A) who, after analysing the material on record including statements recorded under section 131, found that the ingredients namely, identity, capacity and genuineness in all the three cash creditors and thus deleted the entire addition.