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TMI Blog2018 (9) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... ARAN, AM AND SHRI AMARJIT SINGH, JM For The Revenue : Shri N. Hemalatha (DR) For The Assessee : Shri Devendra Jain (AR) ORDER PER AMARJIT SINGH, JM: The revenue has filed the present appeal against the order dated 08. 12. 2017 passed by the Commissioner of Income Tax (Appeals) - 24, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the A. Y. 2009-10. 2. The revenue has raised the following grounds: - 1. On the facts and in the circumstances of [he cast and m law, the Ld CIT(A) erred in deleting the addition of unsecured loans amounting to Rs, 50, 00, 000/- made under section CIT A of the Income Tax Act, without appreciating the findings of the Assessing Officer on the basis of information received from DDIT (Investigation), Mumbai, that the assessee has entered into cash transaction the extent Rs ₹ 50, 00, 0007- with the Ahuja Group and the same W3s not disclosed in the Audit Report (Form 3CD) and assesses could not be prove the genuineness of the loan transaction and thereby the assessee was in possession of the money, 2. On the facts and in the circumstances of the case and in law, the Ld CI I(A) erred in deleting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken the accommodation entries and entering into cash Iran sections with the group. As per the information received from DDIT(Inv. ), Mumbai fide above referred letter, it has been found that M/s. Iraisaa Developers Put Ltd. has entered into cash transaction to the extent ofRs. 5000000/- with (he group. The cash amount of ₹ 5000000/- has been given to M/s. Iraisaa Developers Lid which is received back by the Ahuja Group in the form of accommodation entry. As the assesses was found to be one of the beneficiaries who has received cask amount of Rs. . 5000000/ which is nowhere recorded in the regular books of account a/M/s Ahuja Group. Therefore, (here is sufficient material on record, on the basis of which have reason to believe that assesses has not? made full and true disclosure, ? suiting m escapement of income chargeable to tax to the extent of ₹ 5000000/-far A. Y. 2009-10 within the meaning of section 147 of the /. T. Act. Hence, it is a fit case for initiation of proceedings /s. 147 of the L T. Act, 1961 by issuing notice u/s. 148 of the I. T. Act, 1961. 4. The Assessing Officer was of the view that the income to the tune of ₹ 50, 00, 000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that during the assessment proceedings the appellant has filed relevant details required to prove the identity and creditworthiness of the lending entity and the genuineness of the transactions in the form of name, address, PAN and IT particulars, confirmations, bank statements etc as evident from the record. The Id AR has further argued that the transaction has taken place through banking channels, therefore the genuineness of the investment cannot be doubted Hence the AR argued that appellant has discharged its onus and the identity, genuineness and credit worth in assessee of the lending entity were proved beyond doubt. The excessive reliance on the statements given by the third-party i. e. key persons of Ahuja group, whom the appellant does not know is considered to be not proper even without giving the appellant a chance to cross-examine the persons who had given such adverse statements. He further argued that addition was made without providing the appellant the corroborative evidence in the possession of the AO to prove that the appellant has paid the cash, as alleged, against the receipt of cheques. On the other hand the Id AO has believed the evidence (supporting docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard. The Hon ble Mumbai (TAT in the case of Ananta shelters P ltd 20 Taxmann. com 153(2012) has laid down certain principles with regard to section 68 which the AO is bound to follow. It has observed as under: (i) section 68 can be invoked when following three conditions are satisfied (a) when there is credit of amounts in the books maintained by (he assessee (b) such credit has to be a sum of money during the previous year (c) either the assessee offers no explanation about the nature and source of such credits found in the books of the explanation offered by the assesses, in the opinion of the Assessing Officer, is not satisfactory. It is only then that the sum so credited may be charged to income-tax as the income of the assessee of that previous year. (it) The expression the assessee offers no explanation means the assessee offers no proper, reasonable and acceptable explanation as regards the sums found credited in the books maintained by the assesses. The opinion of tne Assessing Officer for riot accepting (he explanation offered by the assessee as not satisfactory is required to be based on proper appreciation of material and other attendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances. Once the assessee produces evidences about identity, genuineness and creditworthiness of the lender onus of proof shifts to the revenue. 2. 4. 3 The Hon ble Apex Court in the case of Lovely Exports Pvt Ltd. 216 CTR 195(SCJ 2006 held that the AO is at liberty to bring to Tax [he amounts in their respective hands of the investors if their identity, genuineness and creditworthiness is not proved The AO should have made efforts in assess the amounts in the hands of the investors at least on protective basis. Even in case, the credit worthiness of the investors is not proved it will not automatically give license to the assessing authority to make additions in the hands of the recipient U/S 69A unless it is proved that the appellant was in the possession of cash to That extent which has been introduced in its books of account in the name of bogus/non-existent entities. As It is observed that, in the instant case, the AO has not made any dent on These lines. On the other hand the appellant has filed the details and supporting documentary evidence to prove the identity, genuineness and credit worthiness of all the lending entity 2. 4. 4 As seen from the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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