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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 ..... O be restored. 3. Brief facts of the case are as under: During the course of assessment proceedings it was noticed by the Assessing Officer that the assessee took loans to the tune of Rs. 3,35,00,000/- and the parties from whom the loans were taken are the benami entities of Shri Bhanwarlal Jain, whose group cases Search & Seizure operations as well as Survey operations were conducted on 03- 10-2013 by the Investigation wing, Mumbai. During the course of the search operation, it was found that the activities of the group were operated through several name lending dummy directors, partners/ proprietors of various concerns belonging to the native place of Shri Bhanwarlal Jain & family. The concerns were literally controlled, operated and managed by Shri Bhanwarlal Jain and his family. This fact was admitted by those persons in the sworn statements recorded from them during the course of search operation and they have also admitted that they were made to the position by Shri Bhanwarlal Jain. On verification of the documents forwarded by the investigation wing, it was found that the assessee has taken accommodation entries in the form of unsecured loans from six group concerns of Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer had not examined and corroborated Information so received before recording his own satisfaction of escaped income and initiating reassessment Proceedings, it could be said that assessing officer had acted only on basis of suspicion. 9. On the basis of reasons recorded it seems that statement of any person was neither recorded by the A. O and not In the presence of the assessee hence the credibility of the statement is doubtful and suspicious. 10. Further a general confession by a person that all his transaction are bogus or that he has indulged only in bogus transactions cannot be basis for treating the assessee transaction as bogus and not real. This is more particularly so when the assessee has not been specifically named in the confession. 11. The Supreme Court in the case of ITO vs. Lakhmani Merval Das (1976) 101ITR 427 (SC) the assessee had obtained a loan from a lender. The lender had given a confessional statement subsequently to the Income -Tax Department That he had only indulged in name lending transactions only. The assessment of the assessee was proposed to be reopened on the basis of this statement. The Apex Court held that reassessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 938 (SC); 5) A. Govindarajulu Mudaliar vs. CIT [1958] 34 ITR 807 (SC); 6) Rohini Builders [2002] 256 ITR 360 (Guj); 7) CIT vs. Smt. Sushiladevikhadaria [2009] 319 ITR (Bom); 8) ITO vs. Anant Shelters (P) Ltd. [2012] 51 SOT 234; 9) CIT vs. Varinder Rawlley [2014] 366 ITR 232 (P&H); 10) CIT vs. Jai Kumar Balkiwal [2014] 366 ITR 217 (Raj); 11) CIT vs. Kinetic Capital Finance Ltd. [2013] 354 ITR 296 (Del); 12) CIT vs. Samtelcolor Ltd. 64 DTR 46; and 13) Nemi Chand Kothari vs. CIT [2004] 136 Taxmann 213 18. The ld. Commissioner of Income Tax (Appeals) concluded as under: 6.3.24 Hence, it is to be inferred that in a case where the assesse has supplied all possible information to the Assessing Officer to explain the credit transaction, he has satisfactorily discharged the burden cast on him and it would be for the revenue to prove that the transaction is not satisfactorily explained and provisions of section 68 of the Act are applicable. 6.3.25 In the case before me, the record also shows that to prove the genuineness of the impugned loan entries from the 17 creditors, the appellant has furnished to the Assessing Officer the following details copies of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 3,35,00,000/-, made in the Assessment Order, fails on several counts - (1) Evidence that is relied upon is totally inadequate; (2) Failure to make available incriminating material (reports, statements etc.) forming basis for action by the Assessing Officer; and, (3) failure to recognize the satisfactory nature of the explanation / evidence tendered by the appellant to explain identity of creditors, creditworthiness of the creditors and the genuineness of the loan transactions. Hence, the impugned addition of Rs. 3,35,00,000/- is hereby deleted. 19. Against the above order, the Revenue is in appeal before us. 20. We have heard both the counsel and perused the records. The learned departmental representative relied upon the order's of the assessing officer. 21. Per Contra, the learned counsel of the assessee submitted that the assessee has given all the necessary details. He submitted that the assessing officer has not made any enquiry whatsoever to rebut the submission and evidences submitted by the assessee. Hence, the learned counsel of the assessee submitted that the ld. Commissioner of Income Tax (Appeals) is quite correct in deleting the addition. 22. Upon careful c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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