9911796707
TMI Blog2017 (11) TMI 1659X X X X Extracts X X X X X X X X Extracts X X X X ..... dit worthiness of loan creditor are fully established. This loan was also repaid through cheque which the AO himself had verified and found the same in order. No merit in the addition so made. - Decided partly in favour of assessee - ITA No. 3842/Mum/2017 - - - Dated:- 15-11-2017 - SHRI R.C.SHARMA, AM For the Appellant : Shri Prateek Jain Shri Shailesh For the Respondent : Ms. N. Hemalatha ORDER PER R.C.SHARMA (A.M) This is an appeal filed by the assessee against the order of CIT(A)-41, Mumbai dated 12/04/2017 for A.Y.2007-08 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act. 2. Following grounds have been taken by the assessee:- 1. On the facts and circumstances of the Appellant's cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on Shri Praveen Kumar Jain and his group concerns. The assesses was one of the beneficiary of accommodation entries by way of obtaining bogus entries in the form of unsecured loans of ₹ 10,30,904/- from M/s. Fast Stone Trading Co, one of the entity controlled by Shri Praveen kumar Jain. 5. Before the AO the assessee had submitted the bank statement as evidence to show the receipt of loan as well as the repayment of the said loan. The assessee stated that M/s. Fast Stone Trading Co was operating in the name of M/s. Atharv Business Pvt.Ltd., The AO found that M/s. Atharv Business Pvt. Ltd was also one of the concerns of Shri Praveen Kumar Jain. Based on the above, the AO treated the alleged loan of ₹ 10,00,000/- as unexplai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worthiness of the loan creditors. Furthermore, it is important to point out that the M/s, Faststone Trading Company Pvt. Ltd. has shown turnover of ₹ 39,65,55,651/-. The assessee has repaid the said loan amount in the subsequent years. The details are enclosed in the paper book. 8. Further contention of learned AR before the CIT(A) was as under:- 4.3 The copy of the ROC certificate for change in name from M/s. Faststone trading Co. pvt. Ltd. to M/s. Atharv Business Pvt. Ltd was submitted before the A.O. and the company was operating from the same address. The AO failed to make any enquiries to verify the said fact. 4.4 The allegation of the A.O. that the company, M/s. Faststone trading Co. pvt. Ltd. was controlled by Prav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to belief that income had escaped assessment to the extent of loan amount. Accordingly, ground No.1 is dismissed. 12. From the record I found that to substantiate the loan transaction, assessee had not only submitted loan confirmation but also bank statement to show the receipt of loan as well as repayment of the said loan. As per the document placed on record i.e., loan confirmation, FTR copy, bank statement, balance sheet of the Creditor, I found that all the three conditions of identity, genuineness and credit worthiness of loan creditor are fully established. This loan was also repaid through cheque which the AO himself had verified and found the same in order. Under these facts and circumstances, I do not find any merit in the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
