Smt. Jasuben Vipulbhai Pethani, Surat V. The ACIT.,Range-9, Surat

ITA 615/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 5916 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 18-05-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 15-02-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H P MEENA
• Assessee Lawyers: KK SHAH
• Keywords: Unexplained cash credit; Deemed to accrue or arise in india; Revised return
• Section: 133A; 131; 68

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AT SURAT CAMP BEFORE S/SHRIT T.K.SHARMA, JM AND D.C.AGRAWAL , AM JAYANTIBHAI VASHRAMBHAI LAKHANI (HUF), LAKHANI HOUSE B/H J.K. TOWERS, RING ROAD, SURAT 395 002. VS . ASSTT.CIT, RANGE-9, SURAT. APPELLANT RESPONDENT RASIKBHAI B. PAKIYA, LAKHANI HOUSE B/H J.K. TOWERS, RING ROAD, SURAT 395 002. VS . ASSTT.CIT, RANGE-9, SURAT. APPELLANT RESPONDENT ITA NO.611/AHD/2008 ASST. YEAR 2004-05 ITA NO.612/AHD/2008 ASST. YEAR 2004-05 JAYANTIBHAI VASHRAMBHAI LAKHANI LAKHANI HOUSE B/H J.K. TOWERS, RING ROAD, SURAT 395 002. VS . ASSTT.CIT, RANGE-9, SURAT. APPELLANT RESPONDENT ITA NO.613/AHD/2008 ASST. YEAR 2004-05 2 SMT. JASUBEN V. PETHANI, LAKHANI HOUSE B/H J.K. TOWERS, RING ROAD, SURAT 395 002. VS . ASSTT.CIT, RANGE-9, SURAT. APPELLANT RESPONDENT APPELLANTS BY :- SHRI K. K. SHAH, AR RESPONDENT BY:- SHRI H. P. MEENA, SR. DR O R D E R PER D. C. AGRAWAL, ACCOUNTANT MEMBER . ALL THESE FOUR APPEALS ARE FILED BY THE ASSESSEES OF THE SAME GROUP AGAINST THE ORDERS OF LD. CIT(A). SINCE THE APPEALS PERTAIN TO THE SAME GROUP OF ASSESSEE AND THE ISSUES INVOLVED ARE COMMO N, THESE ARE TAKEN UP TOGETHER FOR THE SAKE OF CONVENIENCE. 2. WE FIRST TAKE UP ITA NO.613/AHD/2008 FOR ASST. Y EAR 2004-05. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLOWING G ROUNDS :- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT TAKING INTO ADJUDICATI NG THAT INITIAL BURDEN IS DISCHARGED BY THE ASSESSEE IN RESPECT OF DEPOSITORS WHOSE SUMMONS U/S 131 ARE RETURNED. (2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT ADJUDICATING THAT ASST T. CIT MADE ADDITION ONLY ON STATEMENT U/S 132(4) AND FAILED TO MAKE PROPER ENQUIRY ABOUT DEPOSITORS DESPITE REQUESTED BY THE A SSESSEE AND THEREFORE ADDITIONS MADE U/S 68 SHOULD BE DELETED. ITA NO.615/AHD/2008 ASST. YEAR 2004-05 3 3. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF LABO UR SUPPLY IN WEAVING INDUSTRY ON COMMISSION BASIS. A SURVEY UNDE R SECTION 133A WAS CARRIED OUT ON 21.03.2005. DURING THE COURSE OF SUR VEY PROCEEDINGS IT WAS NOTICED THAT ASSESSEE HAS OBTAINED VARIOUS UNSECURE D LOANS. SIMILAR BUSINESS WAS CARRIED OUT BY OTHER PARTIES IN THE GR OUP. ONE OF THEM SHRI JAYANTIBHAI LAKHANI (ITA NO.611/AHD/2008) HAS ADMIT TED TO HAVE ACCEPTED UNSECURED LOAN BY GIVING CASH TO THESE PER SONS. HE AGREED THAT CASH GIVEN TO OBTAIN THESE LOANS WERE NOT RECORDED IN THEIR BOOKS OF ACCOUNTS. THE AUTHORISED OFFICER HAD RECORDED THE S TATEMENT OF SHRI JAYANTIBHAI LAKHANI IN THE PRESENCE OF THEIR C.A. N AMELY SHRI DINESH RAMANI WHO IS REPRESENTING THIS GROUP. THE ASSESSE E FILED REVISED RETURN ON 31.3.2005 DECLARING AN INCOME OF RS.13,70,248/-. IT INCLUDED A DISCLOSURE OF RS.12,15,000/- BEING THE DEPOSITORS LOAN. THE AO CARRIED OUT SCRUTINY OF THE REVISED RETURN. HE NOTICED A TO TAL UNSECURED LOAN OF RS.25 LACS IN THE BOOKS OF ASSESSEE AS UNDER :- THE AO NOTICED THAT ASSESSEE WAS REQUIRED TO MAKE F URTHER DISCLOSURE OF RS.12,85,000/- AS IT HAD ONLY DISCLOSED RS.12,15,00 0/-. HE REQUIRED THE ASSESSEE TO PROVE THE IDENTITY OF THE PARTIES, THEI R CREDITWORTHINESS AND 1 SMT. GULABDEVI JAHANGIR 175000 2 SHRI RAMANAND R. SHARMA 300000 3 SHRI RAMGOPAL KHANDELWAL 325000 4 SHRI RATANKUMAR TIBEREWAL 285000 5 SHRI SUSHIL JOSHI 250000 6 SMT. JULIE MENDAWALA 100000 7 SHRI VIJAY SHUBHCHAND SHAH 300000 8 SHRI MANGILAL JAHANGIR 475000 9 SHRI ANIL KAPADIA 290000 TOTAL 25,00,000 4 GENUINENESS OF THE TRANSACTIONS BUT THE ASSESSEE DI D NOT DISCHARGE THE ONUS AND ACCORDINGLY THE AO PROPOSED THE ADDITION O F RS.12,85,000/-. THE AO FURTHER NOTICED THAT TOTAL UNSECURED LOANS W ERE RS.28,11,000/- IN THE BOOKS OUT OF WHICH RS.25,00,000 WERE THOSE WHOS E DETAILS WERE FURNISHED BY THE ASSESSEE AS ABOVE. IN RESPECT OF R S.3,11,000/- NO DETAILS WERE FURNISHED AND ACCORDINGLY THE AO TREATED THIS SUM ALSO AS DEEMED INCOME UNDER SECTION 68. THE LD. CIT(A) CONFIRMED T HE ADDITION ON THE GROUND THAT ASSESSEE FAILED TO DISCHARGE THE PRIMAR Y ONUS OF PROVING THE IDENTITY, CREDITWORTHINESS OF THE CREDITOR AND GENU INENESS OF THE TRANSACTIONS. 4. BEFORE US, THE LD. AR FOR THE ASSESSEE SUBMITTED THAT AO HAS MERELY RELIED ON THE STATEMENT OF SHRI JAYANTIBHAI LAKHANI WHO WAS NOT OFFERED FOR CROSS-EXAMINATION. THUS PRINCIPLES OF N ATURAL JUSTICE ARE NOT FOLLOWED. IN FACT THE ASSESSEE IS READY TO PRODUCE THE CREDITORS AND, THEREFORE, LOANS COULD NOT BE TREATED AS NON-GENUIN E. THE LD. AR SOUGHT OUR PERMISSION FOR FILING DETAILS ABOUT THE CREDITO RS SUBMITTING THAT THE CREDITORS OF RS.12,85,000/- AND OF RS.3,11,000/- AR E GENUINE. 5. THE LD. DR ON THE OTHER HAND, SUBMITTED THAT SHR I JAYANTIBHAI IS THEIR OWN MAN AND HIS STATEMENT WAS RECORDED BEFORE THEIR OWN C.A. HE CLEARLY ADMITTED THAT CASH OF RS.25 LACS WAS GIVEN AGAINST WHICH UNSECURED LOAN OF RS.25 LACS WERE PROCURED, THEREFO RE, NO FURTHER OPPORTUNITY IS REQUIRED TO BE GIVEN. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL ON RECORD. IN OUR CONSIDERED VIEW THE ADDITION HAS BEEN MADE ON THE BASIS OF STATEMENT OF SHRI JAYANTIBHAI. HE SHOULD BE OFFE RED FOR CROSS- EXAMINATION. FURTHER AS ASSESSEE HAS PROMISED BEFOR E US, HE SHOULD BE 5 ALLOWED TO PRODUCE THE CREDITORS. THE AO WILL EXAMI NE THESE CREDITORS AND FIND OUT THE TRUTHFULNESS OF THE STATEMENT OF S HRI JAYANTIBHAI. SHRI JAYANTIBHAI SHOULD ALSO BE OFFERED FOR CROSS-EXAMIN ATION. IN VIEW OF THIS, WE RESTORE THE MATTER TO THE FILE OF AO TO EXAMINE AFRESH THE CREDITS RELATING TO RS.12,85,000 AND RS.3,11,000. LET THE A SSESSEE PRODUCE THE EVIDENCE ABOUT IDENTITY, CREDITWORTHINESS AND GENUI NENESS OF THE TRANSACTIONS. THUS, THE APPEAL FILED BY THE ASSESSE E IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.611/AHD/2008 FOR ASST. YEAR 2004-05 7. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS:- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT TAKING INTO ADJUDICATI NG THAT INITIAL BURDEN IS DISCHARGED BY THE ASSESSEE IN RESPECT OF DEPOSITORS WHOSE SUMMONS U/S 131 ARE RETURNED. (2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT ADJUDICATING THAT ASST T. CIT MADE ADDITION ONLY ON STATEMENT U/S 132(4) AND FAILED TO MAKE PROPER ENQUIRY ABOUT DEPOSITORS DESPITE REQUESTED BY THE A SSESSEE AND THEREFORE ADDITIONS MADE U/S 68 SHOULD BE DELETED. 8. A SURVEY U/S 133A WAS CARRIED OUT AT THE PREMISE S ON 21.03.2005. DURING THE COURSE OF SURVEY PROCEEDINGS IT WAS GATH ERED THAT ASSESSEE HAS OBTAINED UNSECURED LOAN FROM VARIOUS PARTIES BY GIV ING CASH. SHRI JAYANTIBHAI LAKHANI, THE ASSESSEE (IN ITA NO.612/AH D/2008) ADMITTED THAT HE AND HIS GROUP MEMBERS HAVE ACCEPTED UNSECUR ED LOANS BY GIVING CASH TO THE PERSONS FROM WHOM LOANS AND ADVANCES WE RE RECEIVED BACK BY CHEQUES. THE CASH SO GIVEN WAS NOT RECORDED IN T HE BOOKS OF ACCOUNTS. A STATEMENT OF THE ASSESSEE WAS RECORDED IN THE PRE SENCE OF SHRI DINESH 6 RAMANI, C.A. THE GROUP MEMBERS HAD MADE A DISCLOSU RE OF RS.2,65,76,135/- BEING UNSECURED LOAN OBTAINED BY G IVING CASH. THE ASSESSEE DECLARED ADDITIONAL INCOME OF RS.19,93,470 /- ON ACCOUNT OF SUCH LOANS. HOWEVER, THE AO DURING THE COURSE OF SCRUTIN Y NOTICED THAT ASSESSEE HAD OBTAINED TOTAL AMOUNT OF LOAN OF RS.26 ,22,046/- AS UNDER :- HE REQUIRED THE ASSESSEE TO FURNISH EVIDENCE IN RES PECT OF IDENTITY, CREDITWORTHINESS OF REST OF THE CREDITORS AND GENUI NENESS OF THE TRANSACTIONS BUT NO SUCH EVIDENCE WAS FURNISHED. TH E AO ACCORDINGLY TREATED THE BALANCE SUM OF RS.6,28,576/- (26,22,046 19,90,470) AS FURTHER UNEXPLAINED CREDITS AND ADDED THE SAME TO T HE TOTAL INCOME OF THE ASSESSEE. 9. IN FACT AO NOTICED THAT TOTAL UNSECURED LOANS IN THE BOOKS OF THE ASSESSEE WERE RS.31,81,560/- FOR THE REST OF SUM OF RS.5,61,514 (31,81,560 -26,22,046) NO EVIDENCE WAS FURNISHED BY THE ASSESSEE. HE ACCORDINGLY PROPOSED THE ADDITION OF THIS AMOUNT. 10. LD. CIT(A) CONFIRMED THE ADDITION ON THE GROUND THAT NO EVIDENCE HAS BEEN FURNISHED. 1 SHRI RAGHUVIR P. KHANDELWAL 4,14,787 2 SHRI RATANKUMAR J. TIBEWAL 2,37,781 3. SHRI HITESH J. CHAUHAN 2,64,201 4 SMT. JULI UMESH MENDAWALA 3,90,795 5 SHRI UMESH N. MENDAWALA 3,15,959 6 SHRI JAY JARAYAN S. SINGH 3,68,408 7 SHRI ANIL AMARCHAND KAPADIA 3,15,508 8 SHRI RAMGOPAL KHANDELWAL 3,14,607 TOTAL 26,22,046 7 11. THE LD. AR ARGUED THAT ADDITION IS BASED SOLELY ON THE BASIS OF STATEMENT OF SHRI JAYANTIBHAI LAKHANI. HOWEVER, OPP ORTUNITY HAS NOT BEEN GIVEN TO PRODUCE THE CREDITORS. HE FURTHER SOU GHT TO FURNISH THE DETAILS ABOUT THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS BEFORE US. 12. THE LD. DR ON THE OTHER HAND, RELIED ON THE ORD ERS OF AUTHORITIES BELOW. 13. SINCE THE ASSESSEE HAS SOUGHT AN OPPORTUNITY TO PRODUCE THE CREDITORS WE RESTORE THE MATTER TO THE FILE OF AO. ASSESSEE SHOULD BE GIVEN REASONABLE OPPORTUNITY OF PRODUCING THE CREDI TORS. THE AO WILL EXAMINE AND SATISFY HIMSELF ABOUT THE IDENTITY OF T HE CREDITORS, THEIR CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION S. SINCE SHRI JAYANTIBHAI LAKHANI IS HIMSELF THE ASSESSEE THERE I S NO QUESTION OF OFFERING CROSS-EXAMINATION TO HIMSELF. THUS, WE RES TORE THE MATTER TO THE FILE OF AO ONLY FOR THE PURPOSE OF ENABLING TO PROD UCE THE CREDITORS IN RESPECT OF ADDITION OF RS.6,28,576/- AND RS.5,67,51 4/-. THE APPEAL OF THE ASSESSEE IS ALLOWED BUT FOR STATISTICAL PURPOSES. ITA NO.612/AHD/2008 FOR ASST. YEAR 2004-05 14. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOL LOWING GROUNDS:- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT TAKING INTO ADJUDICATI NG THAT INITIAL BURDEN IS DISCHARGED BY THE ASSESSEE IN RESPECT OF DEPOSITORS WHOSE SUMMONS U/S 131 ARE RETURNED. (2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT ADJUDICATING THAT ASST T. CIT MADE 8 ADDITION ONLY ON STATEMENT U/S 132(4) AND FAILED TO MAKE PROPER ENQUIRY ABOUT DEPOSITORS DESPITE REQUESTED BY THE A SSESSEE AND THEREFORE ADDITIONS MADE U/S 68 SHOULD BE DELETED. 15. A SURVEY U/S 133A WAS CARRIED OUT AT THE PREMIS ES ON 21.03.2005. DURING THE COURSE OF SURVEY PROCEEDINGS IT WAS GATH ERED THAT ASSESSEE HAS OBTAINED UNSECURED LOAN FROM VARIOUS PARTIES. SHRI JAYANTIBHAI LAKHANI, THE ASSESSEE ADMITTED THAT HE AND HIS GROUP MEMBERS HAVE ACCEPTED UNSECURED LOANS BY GIVING CASH TO THE PERSONS FROM WHOM LOANS AND ADVANCES WERE RECEIVED BACK BY CHEQUES. THE CASH SO GIVEN WAS NOT RECORDED IN THE BOOKS OF ACCOUNTS. THE GROUP MEMBER S HAD MADE A DISCLOSURE OF RS.2,65,76,135/- BEING UNSECURED LOAN OBTAINED BY GIVING CASH. THE ASSESSEE DECLARED ADDITIONAL INCOME OF RS .13,35,000/- ON ACCOUNT OF SUCH LOANS. HOWEVER, THE AO DURING THE C OURSE OF SCRUTINY NOTICED THAT ASSESSEE HAD OBTAINED TOTAL AMOUNT OF LOAN OF RS.24,70,000/- AS UNDER :- HE REQUIRED THE ASSESSEE TO FURNISH EVIDENCE IN RES PECT OF IDENTITY, CREDITWORTHINESS OF REST OF THE CREDITORS AND GENUI NENESS OF THE TRANSACTIONS BUT NO SUCH EVIDENCE WAS FURNISHED. TH E AO ACCORDINGLY TREATED THE BALANCE SUM OF RS.11,35,000/- (24,70,00 0 13,35,000) AS 1 MOOLCHAND C. KHANDELWAL 300000 2 RAMANAND RAMKISHAN SHAMAR 360000 3. KAUSHALIYA DEVI 100000 4 RAMJIBHAI KASHUBHAI 285000 5 ANITA P. JAI 300000 6 HITESH R. PATEL 475000 7 MANGILAL K. JANGIR 200000 8 SHANKAR P. SAROLIYA 250000 9 VIJAY SHAH 200000 TOTAL 24,70,000 9 FURTHER UNEXPLAINED CREDITS AND ADDED THE SAME TO T HE TOTAL INCOME OF THE ASSESSEE. 16. IN FACT AO NOTICED THAT TOTAL UNSECURED LOANS I N THE BOOKS OF THE ASSESSEE WERE RS.32,70,845/- FOR THE REST OF SUM OF RS.8,00,845/- (32,70,845-24,70,000), THE ASSESSEE SUBMITTED EVIDE NCE FOR RS.5,30,845/- SHOWING THEM AS OPENING BALANCE AS ON 31.3.2004. ON THIS BASIS, THE AO TREATED RS.5,30,845/- AS EXPLAINED WHILE REST OF SU M OF RS.2,70,000/- WAS TREATED AS UNEXPLAINED AND ACCORDINGLY ADDITION FOR THIS AMOUNT WAS PROPOSED. 17. LD. CIT(A) CONFIRMED THE ADDITION ON THE GROUND THAT NO EVIDENCE HAS BEEN FURNISHED. 18. THE LD. AR ARGUED THAT ADDITION IS BASED SOLELY ON THE BASIS OF STATEMENT OF SHRI JAYANTIBHAI LAKHANI. HOWEVER, OPP ORTUNITY HAS NOT BEEN GIVEN TO PRODUCE THE CREDITORS. HE FURTHER SOU GHT TO FURNISH THE DETAILS ABOUT THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS BEFORE US. 19. THE LD. DR ON THE OTHER HAND, RELIED ON THE ORD ERS OF AUTHORITIES BELOW. 20. SINCE THE ASSESSEE HAS SOUGHT AN OPPORTUNITY TO PRODUCE THE CREDITORS WE RESTORE THE MATTER TO THE FILE OF AO. ASSESSEE SHOULD BE GIVEN REASONABLE OPPORTUNITY OF PRODUCING THE CREDI TORS. THE AO WILL EXAMINE AND SATISFY HIMSELF ABOUT THE IDENTITY OF T HE CREDITORS, THEIR CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION S. SINCE SHRI JAYANTIBHAI LAKHANI IS HIMSELF THE ASSESSEE THERE I S NO QUESTION OF OFFERING CROSS-EXAMINATION TO HIMSELF. THUS, WE RES TORE THE MATTER TO THE FILE OF AO ONLY FOR THE PURPOSE OF ENABLING TO PROD UCE THE CREDITORS IN RESPECT OF ADDITION OF RS.11,35,000/- AND RS.2,70,0 00/-. THE APPEAL OF THE ASSESSEE IS ALLOWED BUT FOR STATISTICAL PURPOSES. 10 ITA NO.615/AHD/2008 FOR ASST. YEAR 2004-05 21. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOL LOWING GROUNDS:- (1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT TAKING INTO ADJUDICATI NG THAT INITIAL BURDEN IS DISCHARGED BY THE ASSESSEE IN RESPECT OF DEPOSITORS WHOSE SUMMONS U/S 131 ARE RETURNED. (2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN L AW, THE LD. CIT(A)-V, SURAT ERRED IN NOT ADJUDICATING THAT ASST T. CIT MADE ADDITION ONLY ON STATEMENT U/S 132(4) AND FAILED TO MAKE PROPER ENQUIRY ABOUT DEPOSITORS DESPITE REQUESTED BY THE A SSESSEE AND THEREFORE ADDITIONS MADE U/S 68 SHOULD BE DELETED. 22. A SURVEY U/S 133A WAS CARRIED OUT AT THE PREMIS ES ON 21.03.2005. DURING THE COURSE OF SURVEY PROCEEDINGS IT WAS GATH ERED THAT ASSESSEE HAS OBTAINED UNSECURED LOAN FROM VARIOUS PARTIES. SHRI JAYANTIBHAI LAKHANI, THE ASSESSEE ADMITTED THAT HE AND HIS GROUP MEMBERS HAVE ACCEPTED UNSECURED LOANS BY GIVING CASH TO THE PERSONS FROM WHOM LOANS AND ADVANCES WERE RECEIVED BACK BY CHEQUES. THE CASH SO GIVEN WAS NOT RECORDED IN THE BOOKS OF ACCOUNTS. A STATEMENT OF T HE ASSESSEE WAS RECORDED IN THE PRESENCE OF SHRI DINESH RAMANI, C.A . THE GROUP MEMBERS HAD MADE A DISCLOSURE OF RS.2,65,76,135/- B EING UNSECURED LOAN OBTAINED BY GIVING CASH. THE ASSESSEE DECLARED ADDI TIONAL INCOME OF RS.7,60,000/- ON ACCOUNT OF SUCH LOANS. HOWEVER, TH E AO DURING THE COURSE OF SCRUTINY NOTICED THAT ASSESSEE HAD OBTAIN ED TOTAL AMOUNT OF LOAN OF RS.13,00,000/- AS UNDER :- 11 IN FACT AO NOTICED THAT TOTAL UNSECURED LOANS IN TH E BOOKS OF THE ASSESSEE WERE RS.7,60,000/- FOR THE REST OF SUM OF RS.5,40,0 00 (13,00,000- 7,60,000) NO EVIDENCE WAS FURNISHED BY THE ASSESSEE . HE ACCORDINGLY PROPOSED THE ADDITION TO THIS EXTENT ALSO. 23. LD. CIT(A) CONFIRMED THE ADDITION ON THE GROUND THAT NO EVIDENCE HAS BEEN FURNISHED. 24. THE LD. AR ARGUED THAT ADDITION IS BASED SOLELY ON THE BASIS OF STATEMENT OF SHRI JAYANTIBHAI LAKHANI. HOWEVER, OPP ORTUNITY HAS NOT BEEN GIVEN TO PRODUCE THE CREDITORS. HE FURTHER SOU GHT TO FURNISH THE DETAILS ABOUT THE IDENTITY AND CREDITWORTHINESS OF THE CREDITORS BEFORE US. 25. THE LD. DR ON THE OTHER HAND, RELIED ON THE ORD ERS OF AUTHORITIES BELOW. 26. SINCE THE ASSESSEE HAS SOUGHT AN OPPORTUNITY TO PRODUCE THE CREDITORS WE RESTORE THE MATTER TO THE FILE OF AO. ASSESSEE SHOULD BE GIVEN REASONABLE OPPORTUNITY OF PRODUCING THE CREDI TORS. THE AO WILL EXAMINE AND SATISFY HIMSELF ABOUT THE IDENTITY OF T HE CREDITORS, THEIR CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION S. SHRI JAYANTIBHAI 1 SHRI HITESH JETHABHAI CHAUHAN 350000 2 SHRI ANIL KAPADIA 410000 3. SHRI MULCHAND KHANDELWAL 125000 4 SHRI RAMANAND RAMKISHAN SHARMA 150000 5 SHRI RATANKUMAR JHABHARMAL TIBREWAL 265000 TOTAL 13,00,000 12 LAKHANI SHOULD ALSO BE CALLED AND ASSESSEE BE GIVEN AN OPPORTUNITY TO CROSS-EXAMINATION. THUS, WE RESTORE THE MATTER TO T HE FILE OF AO ONLY FOR THE PURPOSE OF ENABLING TO PRODUCE THE CREDITORS IN RESPECT OF ADDITION OF RS.5,40,000/- AND CROSS-EXAMINATION OF JAYANTIBHAI LAKHANI. THE APPEAL OF THE ASSESSEE IS ALLOWED BUT FOR STATISTICAL PURP OSES. 27. IN THE RESULT, ALL THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN OPEN COURT ON 18/06/2010 SD/- SD/- (T.K. SHARMA) (D.C.AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD, DATED : 18/06/2010 MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD