M/s. Jay Prakash Ganeriwala, Raniganj V. ITO, Ward-3(1), Asansol, Asansol

ITA 2113/KOL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1815 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 17-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Assessee Lawyers: U DASGUPTA ADOVCATE
• Keywords: Onus to prove

Judgement Text

1 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 , B , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE . , /AND . . , ) [BEFORE SHRI J. SUDHAKAR REDDY, AM & SHRI A. T. VA RKEY, JM] I.T.A. NO. 2113/KOL/2014 ASSESSMENT YEAR: 2008-09 M/S. JAY PRAKASH GANERIWALA (PAN: AAEFJ7770Q) VS. INCOME-TAX OFFICER, WD-3(1), ASANSOL APPELLANT RESPONDENT DATE OF HEARING 08.11.2017 DATE OF PRONOUNCEMENT 17.01.2018 FOR THE APPELLANT SHRI U. DASGUPTA, ADOVCATE FOR THE RESPONDENT SHRI SAURABH KUMAR, ADDL. CIT, D R ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A), ASANSOL DATED 17.09.2014 FOR AY 2008-09. 2. THE MAIN ISSUE THAT HAS BEEN RAISED BY THE ASSE SSEE IS AGAINST THE ACTION OF THE LD. CIT(A) IN CONFIRMING THE ADDITION ON ACCOUNT OF UNS ECURED LOANS AMOUNTING TO RS.7,50,000/- U/S. 68 OF THE INCOME-TAX ACT, 1961 ( HEREINAFTER REFERRED TO AS THE ACT) BY THE AO. 3. BRIEF FACTS OF THE CASE ARE THAT DURING SCRU TINY ASSESSMENT, THE AO NOTED THAT THE ASSESSEE HAS TAKEN UNSECURED LOANS OF RS.2,50,000/- FROM JAY PRAKASH SAMIR KUMAR (HUF), RS. 3,00,000/- FROM M/S. BISWANATH & SONS, RS.1,00 ,000/- FROM JAI PRAKASH SHARMA AND RS.1,00,000/- FROM SMT. SUNITA SHARMA. THE AO ASKED THE ASSESSEE TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE LOAN TRANSA CTIONS. THE ASSESSEE FILED LOAN CONFIRMATION ACCOUNT AND COPY OF IT RETURNS ALONG W ITH BALANCE SHEET AND P&L ACCOUNT OF THE CREDITORS/LENDERS OF THE LOAN. THE ASSESSEE AL SO FILED THE FOLLOWING DOCUMENTS TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF T HE TRANSACTIONS: 2 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 I) JAIPRAKASH SAMIR KUMAR (HUF) PROP. OF M/S. D.K. TRANSPORT, CONFIRMATION OF M/S. . M/S. . D. K. TRANSPORT, CONFIRMATION OF LOAN, RS. 2 ,50,000/- , BANK STATEMENT COPY FROM WHICH LOAN DISBURSED AVAILABLE AT PAGE 1-5 OF PAP ER BOOK. II) CASH BOOK PRINT OUT OF THE LOAN CREDITOR TO PRO VE AVAILABILITY OF CASH BALANCE IN THE BOOKS NEEDED FOR DEPOSITING THE SAME IN BANK ACCOUN T AVAILABLE AT PAGE 6 TO 20 PAPER BOOK. III) TRADE LICENSE COPY OF LOAN CREDITOR AND COPY O F' ECL WORK ORDER TO PROVE EXISTENCE OF GENUINE BUSINESS AVAILABLE AT PAGE 21 TO 26 PAPER BOOK. IV) COPY OF EARLIER INCOME TAX RETURNS AND BALANCE SHEET OF LOAN CREDITOR OF LAST THREE YEARS TO PROVE CREDIBILITY AVAILABLE AT PAGE 27 T O 39 PAPER BOOK. V) JAIPRAKASH SHARMA (HUF) PROP. OF M/S. BISWANATH & SONS, CONFIRMATION OF LOAN RS.3,00,000/- , ICICI BANK STATEMENT FROM WHICH THE LOAN HAS BEEN DISBURSED, SALES TAX REGISTRATION CERTIFICATE ,TO PROVE GENUINENESS OF B USINESS OF LENDER, CASH BOOK PRINT OUT OF LENDER, TO PROVE AVAILABILITY OF CASH BALANCE FOR D EPOSIT IN ICICI BANK AVAILABLE AT PAGE 40 TO 47 PAPER BOOK. VI) COPY OF EARLIER INCOME TAX RETURNS AND BALANCE SHEET OF LOAN CREDITOR OF LAST THREE YEARS TO PROVE CREDIBILITY - AVAILABLE AT PAGE 48 TO 50 PAPER BOOK. VII) JAI PRAKASH SHARMA (LOAN LENDER) (INDIVIDUAL) , LOAN CONFIRMATION RS. 1,00,000/- AND BANK STATEMENT FROM WHICH LOAN DISBURSED AVAILABL E AT PAGE 51 TO 53 PAPER BOOK. VIII) COPY OF INCOME TAX RETURNS AND CASH BOOK PRIN T OUT OF LENDER TO PROVE CREDITWORTHINESS AND GENUINENESS AVAILABLE AT PAG E 54 TO 64 PAPER BOOK. IX) SUNITA SHARMA ( LOAN LENDER) ( INDIVIDUAL) LOAN CONFIRMATION RS.L,00,000/- AND BANK STATEMENT FROM WHERE LOAN DISBURSED AVAILABLE AT PAGE 65 TO 67 PAPER BOOK. X) COPIES OF INCOME TAX RETURNS AND BALANCE SHEET O F LOAN LENDER TO PROVE CREDIT WORTHINESS AVAILABLE AT PAGE 68 TO 71 PAPER BOOK. 4. THE AFORESAID DOCUMENTS HAS BEEN FILED BEFORE US WITH THE CERTIFICATE THAT THE AFORESAID DOCUMENTS WERE IN FACT PRODUCED BEFORE TH E AO/CIT(A) AND THAT THERE WAS NO FRESH EVIDENCE THAT HAS BEEN ADDUCED FOR THE FIRST TIME IN THE PAPER BOOK FILED BEFORE US. THE MAIN GRIEVANCE OF THE ASSESSEE IS THAT THOUGH THE A FORESAID DOCUMENTS WERE FILED, THE AO FOUND CERTAIN DISCREPANCY IN THE CREDITWORTHINESS O F ALL THE LENDERS TO LEND THE LOAN TO ASSESSEE AND IN FACT THESE WERE ASSESSEES OWN MONE Y WHICH HAS BEEN ROUTED THROUGH THESE PURPORTED LENDERS. THE AO NOTED THAT THE RESPECTIV E AMOUNTS LEND TO ASSESSEE WERE DEPOSITED BY THE LENDERS FEW DAYS BEFORE THE CHEQUE WAS ISSUED TO THE ASSESSEE. ACCORDING TO ASSESSEE, THOUGH CASH BOOKS OF THE RESPECTIVE LE NDERS WERE FILED BEFORE THE AO, HE DID NOT 3 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 BELIEVE THAT THESE LENDERS HAD THE CAPACITY TO EARN THE AMOUNT LEND TO THE ASSESSEE AND HE MADE ADDITION U/S. 68 OF THE ACT. AGGRIEVED, THE AS SESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO CONFIRMED THE ORDER OF THE AO. AGGRIEV ED, THE ASSESSEE IS BEFORE US. 5. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE ASSESSEE HAD SHOWN RS.7,50,0 00/- AS UNSECURED LOAN FROM FOUR LENDERS AND WE NOTE THAT OUT OF RS.7,50,000/- JAY P RAKASH SHARMA, HUF WAS THE PROPRIETOR OF M/S. D. K. TRANSPORT AND HAS GIVEN A LOAN OF RS .2,50,000/- TO THE ASSESSEE. THE HUF HAS FILED CONFIRMATION OF LOAN GIVEN TO ASSESSEE WH ICH IS PLACED AT PAGE 1 OF THE PAPER BOOK. FROM PAGES 2 TO 5 IS A BANK STATEMENT OF JAY PRAKAS H SAMIR KUMAR, HUF FROM WHICH IT IS EVIDENT THAT THE AMOUNT WAS DISBURSED THROUGH BANKI NG CHANNEL ON 20.03.2008 (PAGE 4 OF THE PAPER BOOK). PAGE 6 OF THE PAPER BOOK WHICH IS THE CASH BOOK OF THE JAY PRAKASH SAMIR KUMAR, HUF INDICATES THAT IT HAD AN OPENING BALANCE FROM 01.04.2007 OF RS.55,424.50 AND ON 17.03.2008 IT HAD RS.2,50,000/- WHICH WAS DEPOSI TED IN THE SYNDICATE BANK. PAGE 8 OF THE PAPER BOOK IS THE I. T. RETURN FILED BY THE JAY PRAKASH SAMIR KUMAR, HUF WHICH REVEALS THAT THE TOTAL TAXES PAID IS RS.22,585/- AND REFUND COMES TO RS.14,157/-. PAGE 9 OF THE PAPER BOOK IS P&L ACCOUNT AND BALANCE SHEET AS ON 31.03.2 008 WHICH REVEALS THAT THE HUF HAS GIVEN LOAN TO THE ASSESSEE TO THE TUNE OF RS.2,65,0 00/- AND FOR ANOTHER TO RS.15,000/- EACH. THE P&L ACCOUNT REVEALS THAT NET PROFIT TRANSFERRED TO CAPITAL ACCOUNT AS ON 31.03.2008 IS RS.1,78,998/- AND THE PROFIT FROM M/S. D. K. TRAN SPORT WAS TO THE TUNE OF RS.2,10,497/-. THE BALANCE SHEET OF THE PROPRIETOR OF THE HUF I.E. M/S. D. K. TRANSPORT REVEALS THAT IT HAD A CAPITAL OF RS.9,13,834/- AS ON 31.03.2008 AND SUN DRY CREDITOR OF RS.4,85,750/-. IT HAD A SUNDRY DEBTOR OF RS.10,77,087/- AND ITS P&L ACCOUNT SHOWS THAT TRANSPORT CHARGES RECEIVED FOR THE YEAR IS RS.11,63,438/- AND THE TRANSPORT CH ARGES PAID BY M/S. . D. K. TRANSPORT IS RS.9,46,500/- AND THE NET PROFIT IS RS.2,10,497/-. PAGE NO. 12 TO 20 IS THE CASH BOOK OF THE PROPRIETORSHIP OF HUF. PAGE 12 OF THE CASH BOOK RE VEALS AN OPENING BALANCE OF RS.6,49,028/- AND ON 01.04.2007 IT RECEIVED A SUM O F RS.34,000/- AND IN THAT MONTH M/S. . D. K. TRANSPORT HAS PAID TRANSPORT CHARGES AND SALA RY EXPENSES TO THE TUNE OF RS.41,100/-. THUS, ON 01.03.2008 IT HAD AN OPENING BALANCE OF RS .2,77,761/- AND FROM THAT AMOUNT ON 17.03.2008 MADE A PAYMENT OF RS.2,50,000/- ON 17.03 .2008. THUS, THE HUF PROPRIETARY CONCERN HAD ENOUGH CASH I.E. RS.2,50,000/- WHICH WA S DEPOSITED IN ITS SYNDICATE BANK ACCOUNT AND WAS TRANSFERRED TO THE ASSESSEE ON 20.0 3.2008. PAGE 21 IS THE CERTIFICATE OF 4 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 ENLISTMENT BY THE RANIGANJ MUNICIPALITY IN RESPECT TO THE PROPRIETARY CONCERN D.K. TRANSPORT, PROP. JAY PRAKASH SAMIR KUMAR (HUF) IN R ESPECT TO ITS TRANSPORTING OFFICE. PAGE 22 IS A LETTER FROM EASTERN COALFIELDS LTD. TO M/S. D. K. TRANSPORT DATED 29.02.2008 GIVING CONTRACT WORK FOR TRANSPORTATION OF MATERIAL FROM I TS FACTORY. PAGE 23 IS THE CONFIRMATORY WORK ORDER DATED 13.03.2008. LIKEWISE, WORK ORDER S ARE BEING SEEN FROM PAGES 24 TO 26 (SAMPLE) FOUND TO HAVE BEEN PLACED. PAGES 27 TO 39 OF THE PAPER BOOK REVEAL THE COPY OF THE EARLIER INCOME TAX RETURN AND BALANCE SHEET OF LOAN CREDITOR FOR LAST THREE YEARS TO PROVE THE CREDIBILITY, WHICH DOCUMENTS HAVE NOT BEEN FOUND TO BE BOGUS/IN GENUINE. THE AO HAS DOUBTED THE CASH DEPOSITED IN THE HUFS BANK ACCOUN T FEW DAYS BEFORE IT ISSUED THE CHEQUE TO THE ASSESSEE WITHOUT TAKING CREDENCE TO THE CASH BOOK AND THOUGH THE CASH BOOK WAS BEFORE HIM HE DID NOT FIND ANY FACTUAL ERROR. HOWE VER, AO MERELY ON SUSPICION AND CONJECTURE SIMPLY HELD THAT LENDER HAS NO CAPACITY TO LEND THE AFORESAID AMOUNT TO ASSESSEE. IT SHOULD BE REMEMBERED THAT SUSPICION HOWSOEVER ST RONG CANNOT TAKE THE PLACE OF EVIDENCE. HERE, IT IS TRUE THAT THE HUF HAS DEPOSITED RS.2,50 ,000/- FEW DAYS BEFORE IT ISSUED CHEQUE TO THE ASSESSEE, THIS FACT MAY RAISE A DOUBT/SUSPICION HOWEVER, WHEN LENDER HUF HAD FILED THE AFORESAID DOCUMENTS TO PROVE THE IDENTITY AND IT HA D FILED THE CASH BOOK TO SHOW THAT IT HAD ENOUGH CASH IN ITS HAND ON 17.03.2008, THE AO SHOUL D NOT HAVE BRUSHED ASIDE THE EVIDENCE BROUGHT BEFORE HIM AND SIMPLY ON SURMISES AND CONJE CTURES AND ON THE BASIS OF SUSPICION CANNOT MAKE THE ADDITION U/S. 68 OF THE ACT. BY FI LING THE AFORESAID DOCUMENT HUF HAS DISCHARGED ITS BURDEN OF PROOF AND ONCE THE AFORESA ID DOCUMENTS HAVE BEEN FILED THE ONUS SHIFTED TO THE AO AND WITHOUT CONTROVERTING OR FIND ING ANY FAULT IN THE SAME, AO COULD NOT HAVE MADE THE ADDITION. IN THIS CASE THE AO FAILED TO DISCREDIT THE DOCUMENTS FILED BEFORE HIM AND, THEREFORE, ACCORDINGLY LENDER, HUF HAS PR OVED THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF RS.2,50,000/- LEND TO THE ASSES SEE. 6. IN RESPECT OF M/S. BISWANATH & SONS, IT HAD LEN DED RS.3,00,000/- TO THE ASSESSEE. WE NOTE THAT M/S. BISWANATH & SONS , PROPRIETOR IS JAI PRAKASH SHARMA, HUF. WE NOTE THAT IN THE REMAND REPORT PLACED AT PAGE 73 OF THE PAPER BOOK, THE AO NOTES THAT DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE DID NOT FILE S TATEMENT OF ICICI BANK ACCOUNT OF THE SAID PROPRIETARY CONCERN M/S. BISWANATH & SONS. FR OM THE DOCUMENTS I.E. CONFIRMATION OF ACCOUNTS FILED IT REVEALS THAT M/S. BISWANATH & SON S HAS GIVEN LOAN OF RS.3,00,000/- ON 25.03.2008 TO THE ASSESSEE. IT HAS ALSO FILED THE I. T. RETURN. M/S. BISWANATH & SONS HAD 5 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 FILED THE CASH BOOK BEFORE THE AO AND THE ICICI BAN K STATEMENT WHICH ARE PLACED AT PAGES 40 TO 47 OF THE PAPER BOOK. PAGE 41 OF THE PAPER BO OK REVEALS THAT THE LENDER HAS CONFIRMED THE LOAN OF RS. 3,00,000/- GIVEN TO THE ASSESSEE. P AGE 42 OF THE PAPER BOOK IS A CERTIFICATE OF REGISTRATION BY THE WEST BENGAL VALUE ADDED TAX (VA T) FORM NO. 3 WHICH SHOWS THAT JAY PRAKASH SHARMA, HUF IS THE PROPRIETOR OF M/S. BISWA NATH & SONS. PAGE 43 OF THE PAPER BOOK IS THE BANK STATEMENT FROM WHICH IT REVEALS TH AT ON 25.03.2008 AN AMOUNT OF RS. 3,00,000/- WAS TRANSFERRED TO ASSESSEE. PAGE 44 OF THE PAPER BOOK REVEALS THE CASH FLOW STATEMENT FROM 24.03.2008 TO 31.03.2008. AS PER TH E SAID STATEMENT ON 24.03.2008 M/S. BISWANATH & SONS HAD AN OPENING BALANCE OF RS.1,82, 768/- AND IT HAD A CLOSING BALANCE OF RS.2,63,323/- AND ON THAT DAY IT RECEIVED RS.85,554 /-. ON 25.03.2008 IT HAD RECEIVED RS.4,128/-, RS.9,506/- AND RS.63,171/- THUS MAKING A TOTAL OF RS.3,13,129/- FROM WHICH CASH OF RS. 3,00,000/- WAS DEPOSITED IN THE ICICI BANK. ON 26.03.2008 IT HAD A CASH CLOSING BALANCE OF RS.34,167/-, ON 28.03.2008 IT HAD A CLOS ING BALANCE OF RS.43,482/-, ON 30.03.2008 IT HAD A CLOSING BALANCE OF RS.56,883/-, ON 30.03,2008 IT HAD A CLOSING BALANCE OF RS.76,642/- AND ON 31.03.2008 IT HAD A CLOSING B ALANCE OF RS.83,570/-. FROM THE CASH FLOW STATEMENT AS AFORESAID, WE NOTE THAT M/S. BISW ANATH & SONS HAD ENOUGH CASH IN HAND TO BE DEPOSITED IN ICICI BANK ACCOUNT I.E. RS. 3 LA CS AND IT WAS LENDED TO THE ASSESSEE. 7. WE NOTE THAT IN RESPECT OF M/S. JAY PRAKASH SHAR MA, HUF, IT RETURNS HAVE BEEN FILED IN PAGE 48 AND ITS BALANCE SHEET FROM EARLIER YEARS IS FOUND AT PAGE 49 AND FROM A PERUSAL OF THE BALANCE SHEET WE NOTE THAT IT HAD A CAPITAL IN ITS CAPITAL ACCOUNT TO THE TUNE OF RS.11,43,102/-, FROM WHICH WITHDRAWAL OF CAPITAL AT RS.3,30,000/- IS SEEN AND CASH WITHDRAWAL FOR EXPENSES AT RS.24,000/- AS ON 31.03. 2007 IS NOTED. BY FILING THE AFORESAID DOCUMENTS M/S. BISWANATH & SONS HAS PROVED ITS IDEN TITY, CREDITWORTHINESS AND GENUINENESS. HOWEVER, THE AO DESPITE HAVING ALL TH ESE DOCUMENTS BEFORE HIM HAS DOUBTED THE CREDITWORTHINESS OF THE PROPRIETARY CONCERN OF THE HUF. THE PROPRIETARY CONCERN M/S. BISWANATH & SONS HAS DISCHARGED ITS BURDEN OF PROOF BY PROVIDING THE AFORESAID DOCUMENTS BEFORE THE AO. HOWEVER, THE AO HAS NOT FOUND ANY D EFECT OR COULD NOT FIND ANY MATERIAL TO DISCREDIT THE SAME. SO THE VERACITY OF THE DOCUME NTS PRODUCED BY THE ASSESSEE BEFORE THE AO HAS TO BE BELIEVED AND SO CANNOT BE BRUSHED ASID E. HOWEVER, THE AO BASED HIS DECISION ON SUSPICION AND WITHOUT CONTROVERTING ANY OF THE M ATERIALS THAT WAS PLACED BEFORE IT, ON SURMISES AND CONJECTURES HAS DISBELIEVED THE CREDIT WORTHINESS OF THE PROPRIETARY CONCERN, 6 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 WHICH CANNOT BE ACCEPTED AND THEREFORE, ACCORDING T O US, M/S. BISWANATH & SONS, PROPRIETOR M/S. JAY PRAKASH SHARMA, HUF HAS BEEN ABLE TO DISCH ARGE ITS BURDEN CASTED ON IT TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF R S. 3,00,000/- LEND TO ASSESSEE. 8. COMING TO SHRI JAY PRAKASH SHARMA, INDIVIDUAL WH O HAS GIVEN RS.1,00,000/-, WE NOTE FROM A PERUSAL OF PAGE 51 OF THE PAPER BOOK IS THE COPY OF PAN OF SHRI JAY PRAKASH SHARMA AND PAGE 52 OF THE PAPER BOOK IS CONFIRMATIO N OF ACCOUNTS OF GIVING LOAN ON 26.03.2008 TO SHRI JAY PRAKASH SHARMA FROM THE TRAN SACTION REFLECTED IN BANK STATEMENT OF UNION BANK OF INDIA, RANIGANJ FROM WHICH IT REVEALS THAT ON 26.03.2008 PAYMENT OF RS.1,00,000/- WAS MADE TO THE ASSESSEE. PAGE 54 OF THE PAPER BOOK IS THE I. T. RETURN OF SHRI JAY PRAKASH SHARMA, PAGE 55 OF THE PAPER BOOK IS TH E P&L ACCOUNT FROM WHERE IT REVEALS THAT HE HAD RS.1,77,144/- NET PROFIT. PAGE 56 OF T HE PAPER BOOK, WHICH IS BALANCE SHEET FROM WHICH IT REVEALS THAT IN CAPITAL ACCOUNT HE HAD RS. 13,85,488/- AND PAGE 57 OF THE BALANCE SHEET REFLECTS THAT HE HAS GIVEN LOAN TO THE ASSESS EE. FROM PAGE 58 TO 60 OF THE PAPER BOOK WHICH IS THE CASH FLOW STATEMENT FROM 01.03.2008 TO 31.03.2008 FROM WHICH IT REVEALS THAT AS ON 01.03.2008 CASH OPENING BALANCE OF RS.8,589/- . ON 24.03.2008 HE HAS CASH OF RS.58,689/- AND ON 25.03.2008 WE NOTE THAT AN AMOUN T OF RS.19,000/- + RS.75,000/- + RS.4,800/- + RS.9,600/- + RS.12,000/- WAS RECEIVED BY SHRI JAY PRAKASH SHARMA WHICH MAKES TOTAL AMOUNT OF RS.1,11,589/- FROM WHICH AN A MOUNT OF RS.1,04,000/- WAS DEPOSITED IN THE UNION BANK OF INDIA AND CHEQUE WAS ISSUED ON 26.03.2008, THEREFORE, IT SHOWS THAT SHRI JAY PRAKASH SHARMA, THE LENDER HAD ENOUGH CASH IN HAND FROM WHICH HE DEPOSITED RS.1,04,000/- TO THE UNION BANK OF INDIA FROM WHERE THE AMOUNT WAS LEND TO THE ASSESSEE. BY FILING THE AFORESAID DOCUMENTS, THE LENDER SHRI JAY PRAKASH SHARMA HAS DISCHARGED HIS BURDEN OF PROOF TO PROVE THE IDENTITY, CREDITWORTHI NESS AND GENUINENESS OF THE TRANSACTION WITH ASSESSEE. HOWEVER, THE AO HAS DOUBTED THE CRE DITWORTHINESS ON SURMISES AND CONJECTURES, THEREFORE, WE FIND THAT SHRI JAY PRAKA SH SHARMA HAS LEND THE AFORESAID AMOUNT TO THE ASSESSEE AND HAS DISCHARGED THE BURDEN OF PR OOF CASTED ON HIM AND AO ERRED IN MAKING THE ADDITION. 9. COMING TO SMT. SUNITA SHARMA, WHO HAD LENT TO AS SESSEE RS. 1,00,000/-, A PERUSAL OF PAGE 67 OF THE PAPER BOOK, WHICH IS A BANK STATEMEN T REVEALS THAT ON 26.03.2008 AN AMOUNT OF RS. 1,00,000/- WAS TRANSFERRED TO THE ASSESSEE. PAGE 68 OF THE PAPER BOOK REVEALS THE INCOME TAX RETURN OF SMT. SUNITA SHARMA AND PAGE 69 IS THE BALANCE SHEET AS ON 7 ITA NO.2113/KOL/2014 JAY PRAKASH GANERIWALA, AYS- 2008-09 31.03.2008 FROM WHICH IT REVEALS THAT SHE HAD CAPIT AL ACCOUNT OF RS.18,38,273/- AND AFTER DRAWING AS ON 31.03.2008 HAD RS.13,09,523/-. BASED ON THE AFORESAID DOCUMENTS AND PERUSAL OF THE REMAND REPORT OF THE AO, WE ARE OF T HE VIEW THAT THE ASSESSEE HAD DISCHARGED THE BURDEN OF PROOF CASTED ON THE ASSESSEE TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE LENDER. WE NOTE THAT THE AO MER ELY ON THE BASIS OF SUSPICION, SURMISES AND CONJECTURES HAS DISBELIEVED THE DOCUMENTS PRODU CED BY THE ASSESSEE TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE L ENDER. THE AO HAS NOT BEEN ABLE TO CONTROVERT OR COULD SUCCESSFULLY DISCREDIT THE VERA CITY OF THE DOCUMENTS FILED BEFORE HIM. BASED ON THE AFORESAID REASONING AND FACTUAL FINDIN G WHICH WE HAVE RENDERED ABOVE, WE ALLOW THE APPEAL OF THE ASSESSEE AND DIRECT DELETIO N OF THE ADDITION OF RS.7,50,000/-. 10. COMING NEXT TO THE INTEREST DISALLOWED TO THE T UNE OF RS.20,661/- TO THE LENDERS FROM WHOM THE ASSESSEE HAS TAKEN THE UNSECURED LOANS FOR THE PURPOSE OF ITS BUSINESS, WE ARE OF THE OPINION THAT THE INTEREST EXPENDITURE INCURRED BY THE ASSESSEE TO THE TUNE OF R.20,661/- HAS TO BE ALLOWED AND WE DIRECT THE AO TO ALLOW THE SAME. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER IS PRONOUNCED IN THE OPEN COURT ON 17.01.201 8 SD/- SD/- (J. SUDHAKAR REDDY) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 17TH JANUARY, 2018 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT M/S. JAY PRAKASH GANERIWALA, G. T. R OAD (EAST), PUNJABI MORE, SEARSOLE RAJBARI, RANIGANJ-713358 2 RESPONDENT ITO, WARD-3(1), ASANSOL. 3. THE CIT(A) ASANSOL. 4. 5. CIT ASANSOL. DR, ITAT, KOLKATA. / TRUE COPY, BY ORDER, SR. PVT. SECRETARY