The department is aggrieved that in appeal the Commissioner of Income Tax (Appeals) has deleted the addition of Rs.33,11,510/- and the said order has been upheld by the Tribunal. It is the case of the department that the respondent-assessee is a partnership firm engaged in the business of trading in iron & steel and cycle parts and manufacturing cycle parts, which had taken unsecured loans from 18 persons totalling to Rs.72,86,519/- which was noticed by the Assessing Officer on 31.3.2007. Accordingly, the details of the creditors were called for and examined by the Assessing Officer and confirmation regarding the income tax particulars and mode of advancement of loans were taken into account. The Assessing Officer, however, came to the conclusion that though the identity of the creditors was proved but he was not satisfied with the credit worthiness and genuineness of the transactions of 15 creditors and, thus, made the addition of Rs.33,11,510/-. It was, however, come on record that the creditors are existing income tax payees, who have filed their returns showing the mode of advance and their sources and such affairs have been accepted by their respective Assessing Officers.
