9911796707
TMI Blog2017 (6) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee that the assessee has shown unsecured loans of Rs. 1,80,00,000/- out of which a loans by 31 creditors were not genuine and the creditors have no creditworthiness. The AO on the basis of information filed by the assessee qua the names and addresses of the creditors, copies of bank accounts, income tax returns, observed that there were cash deposits and cheques transfer entries in the bank accounts of the lenders and only thereafter issued cheques in favour of the assessee and also all these creditors were having income below the taxable limits, though, these creditors were filing income tax return and thus these loans were nothing but manipulations only. The AO made independent inquiries and also recorded the statements of the few lenders who were found to be labourers in the payroll of the sub-contractors working under the assessee developers. The said labourers/loan creditors confirmed to have opened the bank accounts on the advice of their employer and money was deposited by the said employer out of their savings as confirmed in the statements given to the AO by six lenders. The persons, who were examined, denied to have any independent source except the labour earnings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at these 6 parties are basically giving accommodation. In the remaining 25 loan creditors also, the AO deputed the Inspector and carried out the investigation from the Banks and observed these loan creditors also have no creditworthiness. The brief details of these six(6) parties including remaining 25 parties are discussed below: Sr. No. Name of loan creditors Amount(Rs.) Remarks 1 Ambalal Arjan Patel 4,00,000 Cash were deposited before loan was advanced. Statement recorded u/s.131, proves that he was a labour supervisor at the site of appellant; source of loan advanced not explained. He was earning a meager salary of Rs. 15,000 2 Vinod Karmshi Dholul 3,00,000 R/I of Rs. 1,62,030/filed.Cash were deposited before loan was advanced,. Statement recorded u/s.131, proves that he was a labour supervisor at the site of appellant; source of loan advanced not explained. He was earning a meager salary of Rs. 15,000 3 Nitin I. Makani and Nitin Makani (HUF) 6,25,000 5,00,000 R/I of Rs.l,47,911 and Rs.l,48,848/- filed by Nitil I Makani and Nitin I, Makani (HUF) respectively. Cash were deposited before loan was advanced. St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced. In this case, the cash were deposited in the third party accounts and cheques issued through A K Patel(HUF) 15. Vinod K Chauhan 4,00,000 R/I of Rs. 1,1,05,693/-. Cash were deposited before loan were deposited by the third party accounts and cheques issued through V K Chauhan 16 Ashok Chhabhaiya (HUF) 5,00,000 R/I of Rs. 1,45,951/- filed. Cash were deposited before loan was advanced. In this case the cash were deposited by the third party accounts and cheques issued through A K Chhabhaiya(HUF) 17. Vishanji B Patel 5,00,000 R/I of Rs.l,31,254/-filed. Cash were deposited before loan was advanced. In this case, the cash were deposited by third party and cheques issued through Vishanji B. Patei 18. Amrutlal N Patel 5,00,000 R/I of Rs. 1,55,458 filed/-: Cash were deposited before loan was advanced. In this case, the cash were deposited by third party and cheques issued through Amrutlal N Patel 19 Jayanti Bhimani 3,00,000 R/I of Rs. 1,39,542/- filed. Cash were deposited before loan was advanced. In this case, the cash were deposited in the third party accounts and cheques issued through Jayanti Bhimani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited before loan was advanced. In this case, the cash were deposited by the third party and cheques issued through Shital Jitendra Patel to appellant. AO has carried out a complete investigation and has proved that these loan creditors do not have any creditworthiness and further established that, these loan creditors were providing accommodation entries, routing unaccounted money of the appellant. In view of the above stated facts, the addition made by the AO of Rs. 1,28,OO,OOO/- as unexplained cash credit u/s.68 of the IT.Act, is confirmed and the appeal of the appellant is rejected. 5. The ld.AR vehemently submitted before us that the order of the ld. CIT(A) is wrong and against the facts on record. The ld.AR argued that the assessee has borrowed money from 31 parties who happened to be employees of the assessee's sub-contractor who were having PAN, filing income tax returns, have bank accounts etc which were filed before the AO and the AO found that none of the information given by the assessee was either false or fabricated. The ld AR submitted that it was customary in the business of developers that the labour charges were either paid when these labourers go to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties, perused the material placed before us and also gone through the orders of authorities below and various case laws relied upon by the assessee. We find from the record that the money has been borrowed by the assessee during the year under consideration from 31 parties who were employed with the sub-contractor engaged by the assessee. It is also undisputed fact that the all these persons were assessed to income tax and filing income tax return every year which were available before the AO. However, the AO examined six persons only and accordingly made addition by forming the opinion that the loans taken by the assessee were non-genuine and bogus. It is also undisputed fact that the AO has allowed interest on these borrowings amounting to Rs. 7,78,282/- during the year. While making the addition of money borrowed from these parties as being bogus and non-genuine. Similar deduction in respect of interest on these unsecured loans was also allowed in the subsequent years. Now it is very strange that how the AO has accepted the transaction in part by allowing the interest on these loans while making the addition for the amount of loans by treating the same as non- genuine and bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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