Allowing the appeal of the assessee the Tribunal held that  the  assessee has discharged the burden by proving identity, capacity and genuineness of the loan transaction hence the addition as cash credit is held to be not proper. Tribunal also held that ad-hoc disallowance without rejecting the books of account is held to be not justified. Reassessment is held to be valid as the original assessment was completed u/s 143 (1) of the Act.  (AY.2007-08)