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TMI Blog2018 (8) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... cessary details of the loan creditors, including the identity, creditworthiness and genuineness of the transaction, the onus upon the assessee is discharged. Thus the assessee has discharged its onus. The Assessing Officer has not rebutted any of the submission of the assessee and the documentary evidence in this regard. - Decided against revenue - I.T.A. No. 7079/Mum/2016 - - - Dated:- 1-8-2018 - Shri Shamim Yahya, AM And Shri Pawan Singh, JM Appellant by : Shri Virendar Singh Respondent by : Shri Suchek Anchaliya ORDER Per Shamim Yahya, A. M. This appeal by the Revenue is directed against order of the ld. Commissioner of Income Tax (Appeals) 30, Mumbai dated 19.09.2016 and pertains to assessment year 2012-13. 2. The grounds of appeal read as under: 1) Whether on the facts and in the circumstance of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the assessee had availed of bogus loan entries totally amounting to ₹ 3,35,00,000/- in the F.Y. 2011-12 relevant to A.Y. 2012-13, from various concerns of M/s. Bhanwarlal Group of companies, who were in the business of providing accommodation entries only, as established ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,00,000/- 4 NA VKAR DIAMONDS UNSECURED LOANS 50,00,000/- 5 PANKAJ EXPORTS UNSECURED LOANS 55,00,000/- 6 PRIME STAR UNSECURED LOANS 60,00,000/- TOTAL ₹ 3,35,00,000/- 2. You have issued the show cause notice on the basis of search and seizure act/on carried out by investigation wing, Mumbai in the case of Bhanwarlal Jain group on 31-10-2013. The information is general in nature with no evidentiary value. 3. We have taken short term Unsecured Loans from the above parties by Account Payee Cheque/RTGS. 4. The Repayment of the said Loans was also made through cross account payee Cheque/RTGS within a period of three months. 5. Further all these 6 concerns are assessed to Income Tax and regular in filling the IT Return and paid all their dues. 6. Your goodself intends to treat the above Unsecured Loans as Accommodat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulged in name lending transactions only without naming the assessee or referring to his purchase transaction. The same was held not- to constitute good mater/3/ for founding the belief that income has escaped assessment. The Supreme Court has therefore upheld the high Court's action in quashing the reassessment proceedings. The Calcutta High Court, has also stated that the reassessment proceedings on the ground that general statement cannot constitute relevant material to form a belief that income has escaped assessment. 12. From the above decision it is clear that by virtue of a general statement given by a party that all his transactions were bogus or that he only indulged in giving accommodation bills/entries the same should not be treated as bogus transaction in case of assessee. 5. However the assessing officer was not convinced. He did not seek any further information. He did not make any further enquiry. Relying on the enquiry by the investigation in Department in the case of Bhanwarlal Jain group, he proceeded to add the entire amount of unsecured loan as unexplained credit in the hands of the assessee. 6. Against the above order, the assessee appealed bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance the impugned loans to the appellant,] IV. Confirmatory letters given by the creditors V. Audited financial accounts (including balance sheets) of the creditors [These show that the loans are duly reflected in the books of account of the creditors.] VI. Relevant bank statements of the creditors [These show that the loan amounts were paid through legitimate banking channels. Further these bank statements do not reflect any movement of cash, essential to hawala transactions.] 6.3.26 As such, in so far as the appellant is concerned, they have provided all possible documentary evidence to prove identity of the creditor from whom the impugned loan of ₹ 3,35,00,000/- was obtained. This evidence also proves creditworthiness of the creditors and the genuineness of the transactions. From this it has to be said that the appellant had done everything in its power to prove the three ingredients required to prove the satisfactory nature of the loan transactions. Moreover, as seen from the confirmations filed all the loans were repaid through banking channels in the F.Y. 2012-13 relevant to A.Y. 2013-14. In these circumstances, the onus had shifted to the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Particulars of income-tax returns filed by the creditors. These show that the creditors are legitimate business entities, having the ability to advance the impugned loans to the appellant,] IV. Confirmatory letters given by the creditors V. Audited financial accounts (including balance sheets) of the creditors [These show that the loans are duly reflected in the books of account of the creditors.] VI. Relevant bank statements of the creditors [These show that the loan amounts were paid through legitimate banking channels. Further these bank statements do not reflect any movement of cash, essential to hawala transactions.] 23. The assessing officer has made no enquiry with reference to the above. He did not seek any further explanation or detail from the assessee. He solely relied upon the investigation wing enquiry regarding the Bhanwarilal group. The ld. Commissioner of Income Tax (Appeals) in this regard has correctly made the observation that the assessee having given all the necessary details and has discharged its onus, it was incumbent upon the assessing officer to make further enquiry if he was not convinced by the submissions of the assessee. We find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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