Sh. Sanjay Aggarwal, Hisar v. ITO, Hisar

ITA 679/DEL/2010 | 2006-2007
Pronouncement Date: 29-07-2011 | Result: Allowed

Appeal Details

RSA Number 67920114 RSA 2010
Assessee PAN ADEPA1763B
Bench Delhi
Appeal Number ITA 679/DEL/2010
Duration Of Justice 1 year(s) 5 month(s) 13 day(s)
Appellant Sh. Sanjay Aggarwal, Hisar
Respondent ITO, Hisar
Appeal Type Income Tax Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 29-07-2011
Date Of Final Hearing 20-07-2011
Next Hearing Date 20-07-2011
Assessment Year 2006-2007
Appeal Filed On 15-02-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH G DELHI ] BEFORE THE HONBLE VICEPRESIDENT SHRI G.E. VEERABHA DRAPPA AND SHRI I. P. BANSAL JUDICIAL MEM BER. I. T. APPEAL NO. 679 (DEL) OF 2010 ASSESSMENT YEAR : 2006-07. SHRI SANJAY AGGARWAL THE INCOME -TAX OFFICER 233NEW ANAJ MANDI HISAR. VS. W A R D : 4 H I S A R. PAN / GIR NO. ADE PA 1763 B. A N D I. T. APPEAL NO. 681 (DEL) OF 2010 ASSESSMENT YEAR : 2006-07. SHRI SAJJAN KUMAR GOYAL ASSTT. COMMISSIONER OF INCOME-TAX S/O. SHRI LAKHI RAM GOYAL C/O. M/S. KISHAN LAL LAKHI RAM VS. H I S A R. S. K. OIL AGENT MANDI ADAMPUR [HISAR]. P A N / G I R NO. AAP PG 0141 B. A N D I. T. APPEAL NO. 683 (DEL) OF 2010 ASSESSMENT YEAR : 2006-07. SYNERGY WASTE MANAGEMENT PVT. LTD. A DDL. COMMISSIONER OF INCOME-TAX 168 S E C T O R : 28 VS. H I S A R R A N G E H I S A R. H I S A R. P A N / G I R NO. AAI CS 9088 H. ( APPELLANTS ) ( RESPONDENTS ) 2 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. ASSESSEE BY : SHRI K. SAMPATH ADV.; DEPARTMENT BY : MS. S. MOHANTY SR. D. R. O R D E R. PER I. P. BANSAL JM : ALL THESE APPEALS ARE FILED BY THE ASSESSEES AND T HEY ARE DIRECTED AGAINST THREE SEPARATE ORDERS FOR ASSESSMENT YEAR 2006-07 PASSED BY THE LD . CIT (APPEALS) DATED 11 TH JANUARY 2010 IN I. T. APPEAL NOS. 683 (DEL) OF 2010 & 681 (DEL) OF 2010 AND DATED 12 TH JANUARY 2010 IN ITA. NO. 679 (DEL) OF 2010. ALL THESE THREE APPEALS WE RE ARGUED BY BOTH THE PARTIES TOGETHER HENCE FOR THE SAKE OF CONVENIENCE THESE ARE BEING DISPOS ED OF BY THIS CONSOLIDATED ORDER. I. T. APPEAL NO. 679 (DEL) OF 2010 : 2. GROUND OF APPEAL READS AS UNDER :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW AND ON FACTS I N CONFIRMING THE ADDITION OF RS.1 00 000/- RECEIVED AS LOAN FROM SMT. CHANCHA L RANI AND AN ADDITION OF RS.7 036/- ON ACCOUNT OF INTEREST THEREON. 3.1 DURING THE COURSE OF SEARCH AT THE BUSINESS / R ESIDENTIAL PREMISES OF ONE SHRI MOHAN LAL MITTAL RESIDENT OF HISAR IT WAS REVEALED THAT THE S AID PERSON WAS PROVIDING ACCOMMODATION ENTRIES AND ONE DIARY MARKED AS DOCUMENT NO. A-18 W AS FOUND AND SEIZED FROM THE RESIDENTIAL PREMISES OF SAID SHRI MOHAN LAL MITTAL AND FROM THE PERUSAL OF THE DIARY IT WAS NOTICED THAT AN ENTRY OF RS.7 48 954/- WAS PROVIDED BY SHRI MOHAN L AL MITTAL TO THE FOLLOWING PARTIES :- I) SMRITI MITTAL RS.2 67 587 II) M/S. MOHAN LAL & SON RS.1 60 553 III) CHANCHAL RANI RS.1 07 036/- IV) RAJESH KUMAR RS.1 07 036/- V) RAM NARAIN RS.1 06 740 /- TOTAL : RS.7 48 954/- 3 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. 3.2 IT WAS FURTHER FOUND THAT THE ASSESSEE IN THE P RESENT CASE HAS RAISED LOAN FROM THE AFORESAID PERSONS AND ASSESSEE WAS REQUIRED TO ESTA BLISH GENUINENESS THEREOF. THE EVIDENCE FILED BY THE ASSESSEE IN THIS REGARD WAS NOT CONSIDERED A PPROPRIATE HENCE THE AFORE-MENTIONED AMOUNT IN THE SHAPE OF A SUM OF RS.6 41 980/- RELATING TO AFORE-MENTIONED FOUR PARTIES EXCEPT SMT. CHANCHAL RANI WAS SEPARATELY ADDED AND AN AMOUNT OF RS.1 07 036/- EXISTING IN THE NAME OF SMT. CHANCHAL RANI WAS FURTHER ADDED THUS MAKING T HE TOTAL ADDITION AT RS.7 48 954/-. 3.3 WE IN THE PRESENT APPEAL ARE CONCERNED WITH THE AMOUNT RECEIVED BY THE ASSESSEE FROM SMT. CHANCHAL RANI. IN PARA 3 OF THE ASSESSME NT ORDER IT IS MENTIONED THAT THE STATEMENT ON OATH OF SMT. CHANCHAL RANI WIFE OF SHRI MOHAN L AL MITTAL WAS RECORDED ON 24 TH OCTOBER 2010 AND IN THE STATEMENT OF SMT. CHANCHAL RANI HAS DEPOSED THAT OUT OF RS.2 00 000/- RECEIVED FROM M/S. NANDINI JEWELLERS WHICH IS A CO NCERN OWNED BY HER HUSBAND RS.1 00 000/- WAS ADVANCED TO THE ASSESSEE ON 29 TH AUGUST 2005. HOWEVER COPY OF BANK ACCOUNT FILED BY SMT. CHANCHAL RANI REVEALED THAT RS.1 00 000/- W AS DEPOSITED BY HER ON 29 TH AUGUST 2005 AND ON THE SAME DATE A CHEQUE WAS ISSUED TO THE ASS ESSEE. IT WAS FOUND THAT THE ENTRY OF RS.2 00 000/- ALLEGEDLY RECEIVED BY THE CREDITOR FR OM M/S. NANDINI JEWELLERS HISAR WAS NOT EXISTING IN THE BANK ACCOUNT AND THEREFORE AS SESSING OFFICER INFERRED THAT SMT. CHANCHAL RANI IS THE ONE OF THE LENDERS WHO IS WIFE OF SHRI MOHAN LAL MITTAL WHO IS A KNOWN FIGURE OF HISAR HAVE PROVIDED ENTRIES ON COMMISSION AND S HRI MOHAN LAL MITTAL HAS ALSO ADMITTED THIS FACT IN HIS STATEMENT THAT DURING THE COURSE O F SEARCH HE HAS PROVIDED ENTRY OF RS.1 00 000/- TO THE ASSESSEE. IT IS IN THIS MANNER THE AMOUNT O F RS.1 00 000/- AND INTEREST THEREON OF RS.7 036/- WAS ADDED TO THE INCOME OF THE ASSESSEE. 3.4 LD. CIT (APPEALS) HAS DELETED THE ADDITIONS IN RESPECT OF M/S. MOHAN LAL & SONS SHRI RAJESH KUMAR AND SHRI RAM NARAIN ON THE GROUND THAT SAID SHRI MOHAN LAL MITTAL IN WHOSE CASE SEARCH AND SEIZURE OPERATION WAS CONDUCTED HAD ADMI TTED THE LOAN AMOUNTS AS INCOME BEFORE THE SETTLEMENT COMMISSION. OTHER ADDITION OF RS.2 50 0 00/- AND RS.17 587/- BEING CREDIT IN THE NAME OF SMRITI MITTAL WAS ALSO DELETED BECAUSE THE SAID AMOUNT WAS TRANSFERRED IN HER BANK 4 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. ACCOUNT BY WAY OF ACCOUNT PAYEE CHEQUE. THE LD. CI T (APPEALS) HAS SUSTAINED THE ADDITION PERTAINING TO CREDIT OF SMT. CHANCHAL RANI. THE AS SESSEE IS AGGRIEVED HENCE IN APPEAL. 4. AFTER NARRATING THE FACTS THE LEARNED COUNSEL FO R THE ASSESSEE SUBMITTED THAT THE NECESSARY PARTICULARS REQUIRED TO PROVE THE GENUINENESS OF TH E CREDIT IN RESPECT OF SMT. CHANCHAL RANI WERE PRODUCED. HE DREW OUR ATTENTION TOWARDS PAGE 1 OF THE PAPER BOOK WHERE ACKNOWLEDGEMENT OF RETURN OF INCOME OF SMT. CHANCHAL RANI FOR ASSESSME NT YEAR 2006-07 HAS BEEN PLACED WHEREIN SHE HAS SHOWN NET INCOME OF RS.1 22 443/- AFTER CLA IMING DEDUCTION UNDER SECTION 80-C OF RS.50 000/-. AT PAGE 2 OF THE PAPER BOOK WHERE CON FIRMATION ALONG WITH PERMANENT ACCOUNT NUMBER OF SMT. CHANCHAL RANI HAS BEEN GIVEN WHEREIN SHE HAS CONFIRMED TO HAVE MADE DEPOSIT OF RS.1 00 000/- WITH THE ASSESSEE. AT PAGES 4 TO 5 COPY OF BANK PASS BOOK OF THE CREDITOR IS ATTACHED WHEREIN A SUM OF RS.1 00 000/- HAS BEEN DE POSITED IN CASH ON 29 TH AUGUST 2005 AND THE SAME HAS BEEN GIVEN TO THE ASSESSEE THROUGH CHEQUE. REFERRING TO ALL THESE EVIDENCES THE LD. AR PLEADED THAT THE ASSESSEE HAD PRIMA FACIE PROVED TH E GENUINENESS OF THE CASH CREDIT. HE SUBMITTED THAT THE ASSESSING OFFICER ALSO RECORDED THE STATEMENT OF THE CREDITOR WHERE SHE HAD ADMITTED TO HAVE GIVEN THE SAID AMOUNT TO THE ASSES SEE AND IN THIS MANNER HE PLEADED THAT THE ADDITION HAS WRONGLY BEEN SUSTAINED BY THE LD. CIT (APPEALS) AND THE SAME IS TO BE DELETED. 5. ON THE OTHER HAND THE LD. SR. DR PLACING HEAVY RELIANCE ON THE OBSERVATION OF THE ASSESSING OFFICER IN THE ASSESSMENT ORDER IN WHICH IT WAS CLEARLY POINTED OUT THAT THERE WAS EVIDENCE ON RECORD ACCORDING TO WHICH SAID SHRI MOH AN LAL MITTAL WAS INVOLVED IN GIVING THE ACCOMMODATION ENTRIES WHEREIN THE NAME OF SMT. CHAN CHAL RANI WAS CLEARLY MENTIONED AND THE ASSESSEE WAS BENEFICIARY OF THE AMOUNT RECEIVED BY HIM FROM SMT. CHANCHAL RANI. THUS SHE PLEADED THAT ADDITION HAS RIGHTLY BEEN SUSTAINE D BY THE LD. CIT (APPEALS) AND HIS ORDER IN THIS REGARD SHOULD BE UPHELD. 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS IN THE LIGHT OF MATERIAL PLACED BEFORE US. IN PURSUANCE OF SEARCH CONDUCTED ON SHRI MOHAN LAL MITTAL IT WAS FOUND THAT HE HAD PROVIDED ACCOMMODATION ENTRIES TO VARIOUS PERSONS O NE OF WHOM WAS HIS WIFE ONLY. FROM THAT 5 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. DOCUMENT IT HAS BEEN INFERRED IN THE CASE OF THE AS SESSEE THAT IT REPRESENTED UN-EXPLAINED MONEY IN THE HANDS OF THE ASSESSEE AS THE SAID SMT. CHANC HAL RANI WAS ONLY AN ENTRY PROVIDER. IN RESPONSE TO SUMMONS ISSUED BY LD. AO SAID SMT. CHAN CHAL RANI HAD APPEARED AND HAD DEPOSED THAT SHE HAD GIVEN AN AMOUNT OF RS.1 00 000/- TO TH E ASSESSEE. SHE HAD STATED BEFORE ASSESSING OFFICER THAT SUCH AMOUNT WAS ADVANCED TO THE ASSESS EE OUT OF A SUM OF RS.2 00 000/- RECEIVED BY HER FROM THE PROPRIETARY CONCERN OF HER HUSBAND. T HOUGH THE COPY OF STATEMENT RECORDED BY THE AO HAS NOT BEEN MADE AVAILABLE TO US BUT WHAT CAN BE INFERRED FROM THE OBSERVATION OF THE AO IS THAT SHE HAD RECEIVED A SUM OF RS.2 00 000/- FRO M HER HUSBANDS PROPRIETARY CONCERN OUT OF WHICH SHE HAD ADVANCED RS.1 00 000/- TO THE ASSESSE E. THE FACT THAT SHE HAD RECEIVED A SUM OF RS.2 00 000/- HAS NOT BEEN CONTROVERTED BY THE REVE NUE EXCEPT STATING THAT THE SAID AMOUNT OF RS.2 00 000/- WAS NOT DEPOSITED BY SMT. CHANCHAL RA NI IN HER BANK ACCOUNT BUT THAT MAY NOT BE THE SOLE REASON FOR DISALLOWANCE IN THE PRESENT CAS E AS A SUM OF RS.1 00 000/- WHICH HAS BEEN GIVEN TO THE ASSESSEE WAS DEPOSITED IN HER BANK ACC OUNT AND FROM THAT AMOUNT A CHEQUE WAS ISSUED IN THE NAME OF THE ASSESSEE. THEREFORE THE RELEVANT ENTRY WHICH ASSESSEE HAS RECEIVED HAS BEEN ROUTED THROUGH BANK ACCOUNT OF THE CREDITOR. THE ASSESSEE HAS ALSO FILED COPY OF INCOME- TAX RETURN AND THE CONFIRMATION OF THE CREDIT WHICH BEAR THE INCOME-TAX PARTICULARS OF THE CREDITOR. THEREFORE IT CANNOT BE SAID THAT THE AS SESSEE HAS FAILED TO PROVE EITHER OF THE THREE INGREDIENTS ACCORDING TO WHICH THE ASSESSEE IS REQU IRED TO PROVE IDENTITY CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. THEREFORE WE FIND NO JUSTIFICATION IN SUSTAINING THE SAID ADDITION WHICH ACCORDING TO THE FACTS OF THE PRESENT CASE RE QUIRES DELETION. THEREFORE THE ADDITION MADE IS DELETED AND THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. I. T. APPEAL NO. 681 (DEL) OF 2010 : 7. GROUND OF APPEAL READS AS UNDER :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW AND ON FACTS I N CONFIRMING THE ADDITION OF RS.1 20 500/- ON ACCOUNT OF CASH CREDIT IN THE N AME OF SMT. DURGA DEVI OUT OF TOTAL DEPOSIT MADE BY HER OF RS.2 50 000/-. 6 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. 8. THE ASSESSEE FILED HIS RETURN OF INCOME AT AN IN COME OF RS.16 52 420/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFI CER FOUND THAT THE ASSESSEE HAD OBTAINED A LOAN OF RS.2 50 000/- FROM HIS SISTER SMT. DURGA DEVI. THE ASSESSEE WAS REQUIRED TO PROVE THE GENUINENESS OF THE SAID CREDIT. IN RESPONSE T HE ASSESSEE SUBMITTED COPY OF THE INCOME-TAX RETURN OF THE CREDITOR BALANCE SHEET AND COPY OF H ER SYNDICATE BANK PASS BOOK IN SAVINGS BANK ACCOUNT NO. SB 4885 AND FROM THE PERUSAL OF TH E DETAILS IT WAS FOUND THAT THERE WAS CASH DEPOSIT OF RS.10 000/- ON 13/01/2006 AND RS.1 10 500/- ON 18/01/2006. DOUBTING THE GENUINENESS OF THE CASH CREDIT THE ASSESSING OFFICE R ISSUED SUMMONS TO THE CREDITOR TO EXPLAIN THE CASH DEPOSITS IN HER BANK ACCOUNT. THE CREDITO R BEING CANCER PATIENT COULD NOT ATTEND PERSONALLY BUT SUBMITTED AN AFFIDAVIT DATED 10 TH NOVEMBER 2008 IN WHICH THE CASH CREDITS WERE EXPLAINED AS UNDER :- THE SOURCE OF DEPOSIT IS AS UNDER :- CASH IN HAND AS ON 1/4/05 98 106. 86 DEPOSITED IN 10 000 SYNDICATE BANK 1 10 500 CURRENT YEAR MISC. INCOME 35 000 TOTAL : 1 20 500 TOTAL : 133 106. 86 130 000 WITHDRAWAL FROM M/S. PREM KUMAR SUSHIL KUMAR MANDI ADAMPUR. 130 000 [ CHE QUE ISSUED 2 50 000/- ] 9. STILL DOUBTING THE EXPLANATION THE ASSESSING OF FICER GAVE ANOTHER NOTICE TO THE ASSESSEE TO EXPLAIN AS TO WHY THE CASH DEPOSIT OF RS.1 20 500/- AS FOUND IN THE ACCOUNT OF THE CREDITOR SHOULD NOT BE ADDED UNDER SECTION 68 OF THE INCOME-TAX ACT 1961 [ACT]. IT WAS EXPLAINED THAT THE CREDITOR IS AN OLD LADY OF 72 YEARS. SHE WAS OPERA TED FOR CANCER TREATMENT IN THE YEAR 2001. SHE WAS TREATED FOR CANCER FIVE YEARS BACK BUT DUE TO OLD AGE SHE HAS BECOME WEAK. NOW-A-DAYS PRACTICALLY NO EXPENSES ARE BEING INCURRED FOR CANC ER TREATMENT EXCEPT ROUTINE CHECK UP FROM TIME TO TIME AND THE EXPENDITURE IS MET BY HER HUSB AND SHRI RADHA KRISHAN AND HER THREE SONS. SHE HAD KEPT THE DEPOSIT WITH THE ASSESSEE FOR HER OLD AGE. ALL THE REQUISITE EVIDENCE HAD BEEN FILED. THEREFORE IT WAS EXPLAINED THAT THE CREDIT BEING GENUINE SHOULD BE ACCEPTED. THE 7 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. ASSESSING OFFICER DOUBTED SUCH REPLY OF THE ASSESSE E ON THE GROUND THAT IF SHE WAS TREATED FOR CANCER FOR FIVE YEARS BACK THEN SHE CAN APPEAR BEFO RE HIM IN RESPONSE TO SUMMON UNDER SECTION 131 AND THUS SHE HAS ATTEMPTED TO AVOID PERSONAL AT TENDANCE. THE ASSESSING OFFICER ALSO REJECTED THE CONTENTION OF THE ASSESSEE ON THE GROUND THAT I F THE EXPENDITURE ON HER TREATMENT ARE BEING MET BY HER HUSBAND AND THREE SONS THEN SHE WO ULD HAVE LEFT WITH NO MONEY WHICH COULD HAVE BEEN DEPOSITED WITH THE ASSESSEE. THE ASSESSI NG OFFICER ALSO OBSERVED THAT SHE COULD NOT ALSO HAVE CASH IN HAND KEPT AT HAND AS SHE HAS TO I NCUR CERTAIN EXPENDITURE FOR WHICH NO DETAILS HAVE BEEN FILED AND IN THIS MANNER THE LD. ASSESSIN G OFFICER HAS DIS-BELIEVED THE VERSION OF THE ASSESSEE AND HAS ADDED BACK A SUM OF RS.1 20 500/- OUT OF THE SAID AMOUNT OF RS.2 50 000/-. THE DISALLOWANCE HAS BEEN SUSTAINED BY THE LD. CIT (APP EALS) FOR THE VERY REASONS WHICH HAVE BEEN GIVEN BY THE ASSESSING OFFICER. 10. AFTER NARRATING THE FACTS IT IS THE SUBMISSION OF THE LD. AR THAT THE ASSESSEE HAD PLACED AMPLE DOCUMENTARY EVIDENCE ON RECORD TO PROVE THE G ENUINENESS OF THE CREDIT. THE CREDITOR IS REAL SISTER OF THE ASSESSEE. SHE IS ALSO BEING ASS ESSED TO INCOME-TAX. SHE IS ALSO MAINTAINING BALANCE SHEET FROM WHERE THE ADVANCE OF RS.2 50 000 /- WAS SHOWN TO THE ASSESSEE. HE REFERRED TO THE RELEVANT EVIDENCE PLACED IN THE PAPER BOOK A ND THE COPY OF AFFIDAVIT FILED BY THE CREDITOR BEFORE THE ASSESSING OFFICER ALONG WITH COPY OF BAN K PASS BOOK. THEREFORE HE SUBMITTED THAT THE DISALLOWANCE HAS WRONGLY BEEN MADE BY THE ASSESSING OFFICER ON WRONG PRESUMPTIONS AND IT HAS WRONGLY BEEN SUSTAINED BY THE LD. CIT (APPEALS). 11. ON THE OTHER HAND THE LD. SR. DR RELYING UPON THE FINDINGS RECORDED BY THE ASSESSING OFFICER AND THE LD. CIT (APPEALS) SUBMITTED THAT TH E ASSESSEE COULD NOT PROVE THE CASH DEPOSITS IN THE ACCOUNT OF THE CREDITORS AND THEREFORE TO THA T EXTENT THE ASSESSING OFFICER WAS JUSTIFIED IN MAKING THE ADDITION AND THE LD. CIT (APPEALS) HAS A LSO RIGHTLY SUSTAINED THE SAME. 12. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSI ONS IN THE LIGHT OF MATERIAL PLACED BEFORE US. THE IDENTITY OF THE CREDITOR IN THE PRESENT CA SE CANNOT BE DOUBTED. HER CREDITWORTHINESS ALSO CANNOT BE DOUBTED AS THE SAME IS SUPPORTED BY INCOM E-TAX RETURN FILED BY HER COPIES OF WHICH 8 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. ARE PLACED BEFORE US AT PAGES 1 TO 5 OF THE PAPER B OOK. AT PAGE 1 COPY OF RETURN FOR ASSESSMENT YEAR 2006-07 HAS BEEN FILED WHEREIN THE CREDITOR HA S SHOWN AN INCOME OF RS.80 214/- WHICH IS SUPPORTED BY BALANCE SHEET AND CAPITAL ACCOUNT. TH E ENTIRE INCOME OF THE ASSESSEE IS IN THE SHAPE OF EITHER INTEREST OR PETTY GIFTS. IN THE BALANCE SHEET A SUM OF RS.2 55 915/- HAS BEEN SHOWN IN THE NAME OF SHREE BALAJI OIL COMPANY OF WHICH THE A SSESSEE IS A PROPRIETOR. RS.2 50 000/- PERTAINS TO CREDIT AND ANOTHER AMOUNT OF RS.5 915/- PERTAINS TO INTEREST FOR WHICH THE INCOME HAS BEEN SHOWN BY THE CREDITOR IN HER RETURN OF INC OME. THE CAPITAL ACCOUNT OF THE CREDITOR SHOWS OPENING BALANCE OF RS.4 30 421=41. OTHER INC OME FOR THE YEAR UNDER CONSIDERATION RS.80 214=45 HAS BEEN CREDITED AND BALANCE CARRIED FORWARD HAD BEEN SHOWN AT RS.5 10 635=86 FOR WHICH THE BALANCE SHEET HAS BEEN GIVEN. THUS CREDITWORTHINESS OF THE CREDITOR IS ALSO PROVED. NOW COMING TO THE QUESTION OF GENUINENESS OF THE ENTRY THE CREDITOR HAD FILED AN AFFIDAVIT BEFORE THE ASSESSING OFFICER STATING THE SOURCE OF THE DEPOSIT WITH THE ASSESSEE. THE FACTS STATED IN THE AFFIDAVIT HAVE ALSO NOT BEEN CO NTROVERTED. IN VIEW OF ALL THESE DOCUMENTARY EVIDENCE AND THE INCOME-TAX RECORD OF THE CREDITOR WE ARE OF THE OPINION THAT THE ADDITION HAS WRONGLY BEEN MADE IN THE HANDS OF THE ASSESSEE AND IT HAS WRONGLY BEEN SUSTAINED IN THE HANDS OF THE ASSESSEE AS THE ADDITION IF ANY ON A CCOUNT OF UNEXPLAINED CREDIT IN THE BANK ACCOUNT OF THE CREDITOR COULD BE MADE IN THE HANDS OF THE CREDITOR ONLY. THEREFORE WE DELETE THE ADDITION AND THE APPEAL FILED BY THE ASSESSEE IS AL LOWED. 13. HERE WE MAY MENTION THAT DURING THE COURSE OF H EARING THOUGH BOTH THE PARTIES RELIED UPON CERTAIN JUDICIAL PRONOUNCEMENTS BUT TH E PRESENT APPEAL HAS BEEN DECIDED ON THE BASIS OF FACTS. THEREFORE THERE IS NO NEED TO DIS CUSS THE JUDICIAL PRONOUNCEMENTS RELIED UPON BY BOTH THE PARTIES. I. T. APPEAL NO. 683 (DEL) OF 2010 : 14. GROUND OF APPEAL READS AS UNDER :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW AND ON FACTS I N CONFIRMING :- 9 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. I. THE ADDITION OF RS.3 43 564/- ON ACCOUNT OF C ASH CREDIT IN THE NAME OF SMT. HEM LATA; II. THE ADDITION OF RS.93 564/- ON ACCOUNT OF CAS H CREDIT IN THE NAME OF SHRI JITENDER AGGARWAL; III. THE ADDITION OF RS.1 50 000/- ON ACCOUNT OF C ASH CREDIT IN THE NAME OF SHRI RAHUL AGGARWAL; IV. THE ADDITION OF RS.80 692/- ON ACCOUNT OF CASH CREDIT IN THE NAME OF SHRI ROHTAS AGGARWAL; & V. THE ADDITION OF RS.55 692/- ON ACCOUNT OF CASH CREDIT IN THE NAME OF ROHTAS AGGARWAL (HUF). 15. AS IT CAN BE SEEN FROM THE GROUNDS OF APPEAL A LL THE ADDITIONS PERTAINED TO UN-EXPLAINED CASH CREDITS WHICH HAVE BEEN SUSTAINED BY THE LD. CIT (APPEALS). IT WILL BE RELEVANT TO DESCRIBE THE EVIDENCES FILED BY THE ASS ESSEE IN RESPECT OF EACH OF THE CREDITORS FOR PROPER APPRECIATION OF THE FACTS OF THE CASE :- I. S M T. H E M L A T A : COPIES OF EVIDENCE FILED IN RESPECT OF THIS CREDITO R ARE FILED AT PAGES 8 TO 13 OF THE PAPER BOOK WHICH ARE AS FOLLOWS :- PAGE 8 IS CONFIRMATION GIVING PERMANENT ACCOUNT NUM BER AND THE PARTICULARS WHERE THE CREDITOR IS ASSESSED. THE AMOUNT OF RS.3 43 564/- IS GIVEN TO THE ASSESSEE VIDE CHEQUE NO.893551 DATED 15/04/2005 OF CANARA BANK WHICH HAS BEEN CREDITED IN THE BOOKS OF ASSESSEE ON 21 ST APRIL 2005. THE CREDITOR WAS ALREADY HAVING AN O PENING BALANCE OF RS.1 06 436/- AND ON THE TOTAL CREDITS INTEREST HAS BEEN GIVEN AT RS.51 741/- ON WHICH TDS OF RS.5 278/- IS DEDUCTED AND BALANCE CARRIED FORWARD OF THE CREDITOR IS A SU M OF RS.4 96 463/-; 10 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. PAGE 9 IS COPY OF INCOME-TAX ACKNOWLEDGEMENT FOR AS SESSMENT YEAR 2006-07 IN WHICH CREDITOR HAS SHOWN GROSS TOTAL INCOME OF RS.2 08 37 2/-; PAGE 10 IS COPY OF COMPUTATION OF INCOME; PAGE 11 IS STATEMENT OF ACCOUNT FOR ASSESSMENT YEAR 2006-07 WHEREIN THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE HAS BEEN SHOW N AT A SUM OF RS.4 96 463 WHICH TALLIES WITH THE CREDIT IN THE BOOKS OF THE ASSESSEE OF THE CREDITOR. PAGE 12 IS CASH FLOW ACCOUNT FOR ASSESSMENT YEAR 20 06-07 IN WHICH IN-FLOW HAS SHOWN AN OPENING CASH OF RS.3 56 336/-. II. SHRI JITENDER AGGARWAL : COPIES OF EVIDENCE FILED IN RESPECT OF THIS CREDITO R ARE FILED AT PAGES 14 TO 18 OF THE PAPER BOOK WHICH ARE AS FOLLOWS :- PAGE 14 IS CONFIRMATION GIVING PERMANENT ACCOUNT NU MBER AND THE PARTICULARS WHERE THE CREDITOR IS ASSESSED. THE AMOUNT OF RS.93 564/ - IS GIVEN TO THE ASSESSEE VIDE CHEQUE NO.893559 DATED 20/04/2005 OF CANARA BANK WHICH HAS BEEN CREDITED IN THE BOOKS OF ASSESSEE ON 21 ST APRIL 2005. THE CREDITOR WAS ALREADY HAVING AN O PENING BALANCE OF RS.1 06 436/- AND ON THE TOTAL CREDITS INTEREST HAS BEEN GIVEN AT RS.23 415/- ON WHICH TDS OF RS.2 389/- IS DEDUCTED AND BALANCE CARRIED FORWARD OF THE CREDITOR IS A SU M OF RS.2 21 026/-; PAGE 15 IS COPY OF INCOME-TAX ACKNOWLEDGEMENT FOR A SSESSMENT YEAR 2006-07 IN WHICH CREDITOR HAS SHOWN GROSS TOTAL INCOME OF RS.1 79 37 6=73; PAGE 16 IS STATEMENT OF ACCOUNT FOR ASSESSMENT YEAR 2006-07 WHEREIN THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE HAS BEEN SHOWN AT A SU M OF RS.2 21 026/- WHICH TALLIES WITH THE CREDIT IN THE BOOKS OF THE ASSESSEE OF THE CREDITOR . PAGE 17 IS CASH FLOW ACCOUNT FOR ASSESSMENT YEAR 20 06-07 IN WHICH OPENING CASH OF RS.94 031/- HAS BEEN SHOWN. 11 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. III. SHRI RAHUL AGGARWAL : COPIES OF EVIDENCE FILED IN RESPECT OF THIS CREDITO R ARE FILED AT PAGES 19 TO 23 OF THE PAPER BOOK WHICH ARE AS FOLLOWS :- PAGE 19 IS CONFIRMATION GIVING PERMANENT ACCOUNT NU MBER AND THE PARTICULARS WHERE THE CREDITOR IS ASSESSED. THE AMOUNT OF RS.1 50 000/- IS GIVEN TO THE ASSESSEE VIDE CHEQUE NO.226991 DATED 15/04/2005 OF CANARA BANK WHICH WAS DEPOSITED IN THE BOOKS OF THE ASSESSEE ON 20 TH APRIL 2005. AN INTEREST OF RS.17 063/- HAS BEEN CREDITED TO THE ACCOUNTS OF THE CREDITOR OUT OF WHICH A SUM OF RS.1 741/- HAS BEEN DEDUCTED AT SOURCE LEAVING A BALANCE CARRIED FORWARD OF RS.1 65 322/-; PAGE 20 IS COPY OF INCOME-TAX ACKNOWLEDGEMENT FOR A SSESSMENT YEAR 2006-07 IN WHICH CREDITOR HAS SHOWN GROSS TOTAL INCOME OF RS.1 42 05 4=79; PAGE 21 IS STATEMENT OF ACCOUNT FOR ASSESSMENT YEAR 2006-07 WHEREIN THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE HAS BEEN SHOWN AT A SU M OF RS.1 65 322/- WHICH TALLIES WITH THE CREDIT IN THE BOOKS OF THE ASSESSEE OF THE CREDITOR . PAGE 22 IS CASH FLOW ACCOUNT FOR ASSESSMENT YEAR 20 06-07 IN WHICH OPENING CASH OF RS.1 35 600/- HAS BEEN SHOWN. IV. SHRI ROHTASH AGGARWAL : COPIES OF EVIDENCE FILED IN RESPECT OF THIS CREDITO R ARE FILED AT PAGES 24 TO 29 OF THE PAPER BOOK WHICH ARE AS FOLLOWS :- PAGE 24 IS CONFIRMATION GIVING PERMANENT ACCOUNT NU MBER AND THE PARTICULARS WHERE THE CREDITOR IS ASSESSED. THE AMOUNT OF RS.80 692/- IS GIVEN TO THE ASSESSEE VIDE CHEQUE NO.893558 DATED 15/04/2005 OF CANARA BANK WHICH HAS BEEN CRED ITED IN THE BOOKS OF ASSESSEE ON 20 TH APRIL 2005. THE CREDITOR WAS ALREADY HAVING AN OP ENING BALANCE OF RS.3 19 308/- AND ON THE 12 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. TOTAL CREDITS INTEREST HAS BEEN GIVEN AT RS.47 496 /- ON WHICH TDS OF RS.4 845/- IS DEDUCTED AND BALANCE CARRIED FORWARD OF THE CREDITOR IS A SUM OF RS.4 42 651/-; PAGE 25 IS COPY OF INCOME-TAX ACKNOWLEDGEMENT FOR A SSESSMENT YEAR 2006-07 IN WHICH CREDITOR HAS SHOWN GROSS TOTAL INCOME OF RS.1 85 53 2=91; PAGE 27 IS BALANCE SHEET FOR ASSESSMENT YEAR 2006-0 7 WHEREIN A SUM OF RS.4 42 651/- HAS BEEN SHOWN; PAGE 28 IS CASH FLOW ACCOUNT FOR ASSESSMENT YEAR 20 06-07 IN WHICH OPENING CASH OF RS.97 736=80 HAS BEEN SHOWN. V. ROHTASH AGGARWAL [HUF] : COPIES OF EVIDENCE FILED IN RESPECT OF THIS CREDITO R ARE FILED AT PAGES 30 TO 35 OF THE PAPER BOOK WHICH ARE AS FOLLOWS :- PAGE 30 IS CONFIRMATION GIVING PERMANENT ACCOUNT NU MBER AND THE PARTICULARS WHERE THE CREDITOR IS ASSESSED. THE AMOUNT OF RS.55 692/- IS GIVEN TO THE ASSESSEE VIDE CHEQUE NO.892163 DATED 15/04/2005 OF CANARA BANK WHICH HAS BEEN CRED ITED IN THE BOOKS OF ASSESSEE ON 20 TH APRIL 2005. THE CREDITOR WAS ALREADY HAVING AN OP ENING BALANCE OF RS.3 19 308/- AND ON THE TOTAL CREDITS INTEREST HAS BEEN GIVEN AT RS.44 652 /- ON WHICH TDS OF RS.4 555/- IS DEDUCTED AND BALANCE CARRIED FORWARD OF THE CREDITOR IS A SUM OF RS.4 15 097/-; PAGE 31 IS COPY OF INCOME-TAX ACKNOWLEDGEMENT FOR A SSESSMENT YEAR 2006-07 IN WHICH CREDITOR HAS SHOWN GROSS TOTAL INCOME OF RS.1 44 64 8/-; PAGE 32 IS COPY OF COMPUTATION OF INCOME; PAGE 33 IS STATEMENT OF ACCOUNT FOR ASSESSMENT YEAR 2006-07 WHEREIN THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE HAS BEEN SHOWN AT A SU M OF RS.4 15 097/-. PAGE 34 IS CASH FLOW ACCOUNT FOR ASSESSMENT YEAR 20 06-07 IN WHICH IN-FLOW HAS SHOWN AN OPENING CASH OF RS.50 318/-. 13 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. 16. IT MAY FURTHER BE MENTIONED HERE THAT ALL THE C UMULATIVE BALANCES IN THE CASES OF SMT. HEM LATA SHRI JITENDER AGGARWAL SHRI RAHUL A GGARWAL SHRI ROHTASH AGGARWAL AND ROHTASH AGGARWAL [HUF] HAVE BEEN RE-PAID THROUGH AC COUNT PAYEE CHEQUES FROM THE BANK ACCOUNT WHICH HAS BEEN CREDITED IN THE BANK ACCOUN TS OF THE CREDITORS AND EVIDENCE OF THE SAME HAS BEEN FILED BY THE ASSESSEE AS FOLLOWS :- I. S M T. H E M L A T A : PAGE 36 IS CONFIRMED COPY OF ACCOUNT SHOWING AN AMO UNT OF RS.6 09 159/- PAID TO THE CREDITOR VIDE CHEQUE NO. 918120 DATED 17 TH APRIL 2008 BY MAKING THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE AT NIL; PAGE 37 IS COPY OF BANK ACCOUNT OF SMT. HEM LATA WH EREIN SUCH AMOUNT IN HDFC BANK HAS BEEN CREDITED TO THE ACCOUNT OF THE CREDITOR. II. SHRI JITENDER AGGARWAL : PAGE 38 IS CONFIRMED COPY OF ACCOUNT SHOWING AN AMO UNT OF RS.2 71 203/- PAID TO THE CREDITOR VIDE CHEQUE NO. 465815 DATED 08 TH APRIL 2008 BY MAKING THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE AT NIL; PAGE 39 IS COPY OF BANK ACCOUNT OF SHRI JITENDER AG GARWAL WHEREIN SUCH AMOUNT IN HDFC BANK HAS BEEN CREDITED TO THE ACCOUNT OF THE CREDITOR. III. SHRI RAHUL AGGARWAL : PAGE 40 IS CONFIRMED COPY OF ACCOUNTS SHOWING AN AM OUNT OF RS.2 02 849/- PAID TO THE CREDITOR VIDE CHEQUE NO. 465816 DATED 08 TH APRIL 2008 BY MAKING THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE AT NIL; PAGE 41 IS COPY OF BANK ACCOUNT OF SHRI RAHUL AGGAR WAL WHEREIN SUCH AMOUNT IN HDFC BANK HAS BEEN CREDITED TO THE ACCOUNT OF THE CREDITOR. 14 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. IV. SHRI ROHTASH AGGARWAL : PAGE 42 IS CONFIRMED COPY OF ACCOUNT SHOWING AN AMO UNT OF RS.5 43 132/- PAID TO THE CREDITOR VIDE CHEQUE NO. 482223 DATED 22 ND APRIL 2008 BY MAKING THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE AT NIL; PAGE 43 IS COPY OF BANK ACCOUNT OF SHRI ROHTASH AGG ARWAL WHEREIN SUCH AMOUNT IN HDFC BANK HAS BEEN CREDITED TO THE ACCOUNT OF THE CREDITOR. V. ROHTASH AGGARWAL [HUF] : PAGE 44 IS CONFIRMED COPY OF ACCOUNT SHOWING AN AMO UNT OF RS.5 09 323/- PAID TO THE CREDITOR VIDE CHEQUE NO. 465809 DATED 10 TH APRIL 2008 BY MAKING THE BALANCE OF THE CREDITOR IN THE BOOKS OF THE ASSESSEE AT NIL; PAGE 45 IS COPY OF BANK ACCOUNT OF ROHTASH AGGARWAL [HUF] WHEREIN SUCH AMOUNT IN HDFC BANK HAS BEEN CREDITED TO THE ACCOUNT OF THE C REDITOR. AT PAGES 46 TO 48-A OF THE PAPER BOOK COPIES OF BA NK ACCOUNTS OF THE ASSESSEE ARE ENCLOSED WHERE ALL THE AFORE-MENTIONED AMOUNTS PAID TO THE C REDITORS ARE SHOWN. 17. ALL THE AFORE-MENTIONED CREDITS IN THE HANDS OF THE ASSESSEE HAVE BEEN DOUBTED BY THE ASSESSING OFFICER AND HAVE BEEN ADDED TO THE IN COME OF THE ASSESSEE. IT IS MENTIONED BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER TH AT IN RESPECT OF THE AFORE-MENTIONED FIVE PERSONS THE ASSESSEE HAS FILED ONLY PROOF OF FILING RETURN BY THOSE PERSONS AND CONFIRMATION IS SIGNED ON BEHALF OF THESE LENDERS BY IDENTICAL S IGNATURES. ALL THE PERSONS GIVEN COMMON ADDRESSES AND NO OTHER DOCUMENTARY EVIDENCE HAS BEE N FURNISHED WITH REGARD TO THESE LOANS. THEREFORE THE AGGREGATE AMOUNT OF RS.7 23 512/- IN RESPECT OF THE AFORE-MENTIONED FIVE CREDITORS HAS BEEN TREATED AS INCOME OF THE ASSESSE E ON ACCOUNT OF UN-EXPLAINED CASH CREDITS. 15 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. 18. DURING THE COURSE OF HEARING BEFORE THE LD. CIT (APPEALS) IT WAS NOTICED BY THE LD. CIT (APPEALS) THAT ALL THE AFORE-MENTIONED FIVE CRE DITORS WERE HAVING COMMON JOINT ACCOUNT IN CANARA BANK WAZIRPUR COMMUNITY CENTRE ASHOK VI HAR DELHI AS S.B. ACCOUNT NO. 36484. COPY OF BANK ACCOUNT FOR THE PERIOD FROM 1/04/2005 TO 31 ST MARCH 2006 REVEALED THAT THERE WAS OPENING BALANCE OF RS.1 104/- AS ON 20 TH APRIL 2005 WHEREIN DEPOSITS OF RS.80 692/- RS.93 564/- AND RS.3 43 564/- WERE DEPOSITED IN CAS H ON 20 TH APRIL 2005 OUT OF WHICH CHEQUE NO. 893559 FOR AN AMOUNT OF RS.93 564/-; CHEQUE NO. 893558 FOR AN AMOUNT OF RS.80 692/- AND CHEQUE NO. 893551 FOR AN AMOUNT OF RS.3 43 564/ - WERE DEBITED ON 21 ST APRIL 2005 IN THE BANK ACCOUNT OF THE ASSESSEE COMPANY WHEREBY LE AVING A BALANCE OF RS.1 104/- ONLY. THUS IT HAS BEEN OBSERVED BY THE LD. CIT (APPEALS) THAT ALL THESE THREE PERSONS WERE NOT HAVING SUFFICIENT CASH BALANCE IN THEIR BANK ACCOUN T BEFORE GIVING THE LOAN. THEREFORE THEIR CREDITWORTHINESS DOES NOT STAND PROVED. HE F URTHER FOUND THAT THERE WERE CASH DEPOSITS IN THE SAID BANK ACCOUNT WHICH WERE MADE O N 19 TH JANUARY 2006 OF RS.99 800/- RS.49 800/- AND RS.99 800/- OUT OF WHICH CHEQUE NO. 893557 893555 AND 893556 WERE DEBITED ON ACCOUNT OF SHRI RAM BILAS SHRI PARDEEP AND SHRI RAJESH KUMAR. THUS THE LD. CIT (APPEALS) HAS COME TO THE CONCLUSION THAT THESE CRE DITORS ARE MERELY NAME-LENDERS HENCE THEIR CREDITWORTHINESS IS NOT PROVED AND THE ADDITI ON HAS RIGHTLY BEEN MADE BY THE ASSESSING OFFICER. 19. SO FAR AS IT RELATES TO OTHER CREDITORS NAMELY SHRI RAHUL AGGARWAL AND ROHTASH AGGARWAL [HUF] HE FOUND THAT THE SAME DEVICE HAS B EEN FOLLOWED BY THE ASSESSEE WHEREIN AN AMOUNT OF RS.1 50 000/- WAS DEPOSITED IN CASH IN SAVING BANK ACCOUNT NO. 38925 WITH CANARA BANK WAZIRPUR COMMUNITY CENTRE AND A CHEQUE NO. 226991 FOR RS.1 50 000/- WAS DEBITED TO THE SAID ACCOUNT ON 21 ST APRIL 2005 IN FAVOUR OF THE ASSESSEE COMPANY AND THERE WAS A BALANCE OF RS.1 000/- ONLY. SIMILARLY IN TH E CASE OF ROHTASH AGGARWAL [HUF] THERE WAS BALANCE OF RS.1 101/- ON 20 TH APRIL 2005 AND CASH OF RS.55 692/- WAS DEPOSITED ON 20 TH APRIL 2005 AND A LONE CHEQUE OF RS.55 692/- WAS DEBITED O N 21 ST APRIL 2005 AND IN THESE CIRCUMSTANCES THE LD. CIT (APPEALS) HAS UPHELD THE ADDITION MADE BY THE ASSESSING OFFICER. THE ASSESSEE IS AGGRIEVED HENCE IN APPEAL. 16 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. 20. AFTER NARRATING THE FACTS IT WAS SUBMITTED BY T HE LD. AR THAT THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE AND WHICH IS ENCLOSE D IN THE PAPER BOOK IS SUFFICIENT EVIDENCE TO PROVE ALL THE THREE INGREDIENTS OF GENUINE CASH CREDIT NAMELY THE IDENTITY CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION. HE SUBMITTED T HAT THE DEPOSIT OF CASH IN THE BANK ACCOUNT OF THE CREDITORS IS SUPPORTED BY CASH IN-FLOW STATE MENT WHICH WAS ALSO GIVEN TO THE ASSESSING OFFICER AND COPIES OF WHICH ARE FILED IN THE PAPER BOOK. HE SUBMITTED THAT THE ADDITION HAS WRONGLY BEEN SUSTAINED BY THE ASSESSING OFFICER AND IT SHOULD HAVE BEEN DELETED. 21. ON THE OTHER HAND RELYING UPON THE ORDER OF TH E ASSESSING OFFICER AND OF THE LD. CIT (APPEALS) IT WAS VEHEMENTLY PLEADED BY THE LD. SR. DR THAT THE ADDITION HAS RIGHTLY BEEN SUSTAINED BY THE LD. CIT (APPEALS) AS THE ASSESSEE COULD NOT PROVE CREDITWORTHINESS OF THE CREDITORS AS IN THE BANK ACCOUNT OF THE CREDITORS T HERE WAS A MEAGER BALANCE AND CASH WERE DEPOSITED IN LIEU OF WHICH THE CHEQUES WERE IS SUED BY THE CREDITORS TO THE ASSESSEE FIRM. THEREFORE SHE PLEADED THAT THE ADDITION HAS RIGHTLY BEEN UPHELD BY THE LD. CIT (APPEALS) AND HIS ORDER SHOULD BE CONFIRMED. 22. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSI ONS IN THE LIGHT OF MATERIAL PLACED BEFORE US. THE DOCUMENTARY EVIDENCE FILED BY THE ASSESSEE WITH REGARD TO EACH OF THE CREDITOR HAS BEEN DISCUSSED IN DETAIL IN THE AFORE-MENTIONED PART OF THIS ORDER. THE MAIN DOUBT HAS BEEN EXPRESSED BY THE LD. CIT (APPEALS) ON THE CASH DEPOSITS MADE IN THE ACCOUNT OF THE CREDITORS BEFORE ISSUE OF THE CHEQUE BUT IF A CAREFUL PERUSAL OF THE DOCU MENTARY EVIDENCE IS MADE THEN IT WILL BE RELEVANT TO POINT OUT THAT IN ALL THE CASES THE ASS ESSEE HAD FILED CASH FLOW STATEMENTS IN WHICH SUFFICIENT OPENING CASH HAS BEEN DISCLOSED OUT OF W HICH THE DEPOSITS WERE MADE IN THE RESPECTIVE ACCOUNTS OF THE CREDITORS. FOR EXAMPLE IF THE CAS E OF SMT. HEM LATA AGGARWAL IS TAKEN SHE DEPOSITED IN THE BANK ACCOUNT A SUM OF RS.3 43 564/ - AND AS PER CASH-FLOW STATEMENT SHE WAS HAVING OPENING BALANCE OF RS.3 46 346/-. THE CASH- FLOW STATEMENT SUBMITTED BY THE ASSESSEE HAS NOT BEEN DOUBTED BY THE REVENUE. 17 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. 23. SIMILARLY IN THE CASE OF SHRI JITENDER AGGARWA L A SUM OF RS.93 564/- IS DEPOSITED IN THE BANK ACCOUNT OUT OF WHICH THE CHEQUE WAS ISSUED TO THE ASSESSEE AND THE CASH-FLOW STATEMENT OF SHRI JITENDER AGGARWAL SHOWED OPENING BALANCE OF RS.94 031/-. SIMILAR IS THE POSITION WITH THE OTHER CREDITORS AND THE AMOUNTS H AVE BEEN MENTIONED IN THE EARLIER PART OF THIS ORDER. THEREFORE THE MERE FACT THAT THE CASH WAS DEPOSITED IN THE BANK ACCOUNT BY THE CREDITORS DOES NOT DISPROVE THE CREDITWORTHINESS OF THE CREDITORS AS THE SAME HAS BEEN SHOWN TO HAVE BEEN AVAILABLE WITH THE CREDITORS IN THE CA SH-FLOW STATEMENT. ALL OF THEM ARE INCOME TAX ASSESSEES AND THE INCOME-TAX PARTICULARS OF WHI CH HAVE BEEN GIVEN BY THE ASSESSEE IN THE DOCUMENTS SUBMITTED TO SUPPORT THE CASH CREDIT. NO MATERIAL HAS BEEN BROUGHT ON RECORD BY THE ASSESSING OFFICER TO SHOW THAT THE INCOME-TAX P ARTICULARS GIVEN BY THE ASSESSEE IN RESPECT OF ALL THE CREDITORS ARE EITHER NOT TRUE OR THE SAM E ARE NOT FOUND ON THE FILES OF THE REVENUE. MOREOVER THE ASSESSEE HAS SHOWN THE RETURN OF ENTI RE AMOUNT RECEIVED BY IT FROM THESE CREDITORS IN ASSESSMENT YEAR 2009-2010 AND THEIR EV IDENCE WITH RESPECT THERETO IS ALSO ENCLOSED IN THE PAPER BOOK WHICH HAS ALSO BEEN DESCRIBED EA RLIER. 24. KEEPING IN VIEW THE ENTIRETY OF FACTS AND THE A FORE-MENTIONED EVIDENCE FILED BY THE ASSESSEE WE FIND NO JUSTIFICATION IN SUSTENANC E TO SUCH ADDITION WHICH HAS WRONGLY BEEN SUSTAINED BY THE LD. CIT (APPEALS). THE SAME IS DE LETED AND THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 25. IN THE RESULT ALL THE THREE APPEALS FILED BY T HE RESPECTIVE APPELLANTS ARE ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON : 29 TH JULY 2011. SD/- SD/- [ G. E. VEERABHADRAPPA ] [ I. P. BANSAL ] VICE PRESIDENT. JUDICIAL MEM BER DATED : 29 TH JULY 2011. *MEHTA * 18 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10. COPY OF THE ORDER FORWARDED TO : - 1. APPELLANTS. 2. RESPONDENTS. 3. CIT 4. CIT (APPEALS) 5. DR ITAT NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR ITAT. 19 I. T. APPEAL NOS. 679 681 & 683 (DEL) OF 20 10.