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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 ..... ss 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 the addition of unsecured loans amounting to Rs. 50, 00, 000/-made under section 69A of the Income Tax Act, holding that die transaction was touted through banking channels etc, ignoring the recent decision of [he Hon'ble Supreme Court of India in the cast of Navodaya Castle (I) Ltd. [2015} 56 taxmann. com 18 (SC), wherein the Apex Court has upheld the High Court decision holding [hat certificate of incorporation, PAN, bank statement etc. , were not sufficient fat purpose of identification of subscriber company, " 3. "The appellant prays [hat the order of the CIT{A), Mumbai on the above directions be set-aside and that of the assessing officer be restored. " 4 "The: appellant craves leave to amend or alter any of the aforesaid grounds or add a new ground of appeal, which may be necessary, lit any time before or at the time of hearing of appeal" 3. The brief facts of the case are that the assessee filed its return of income electronically on 29. 10. 2010 declaring loss to the tune of Rs. 48, 467/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 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 Rs. 50, 00, 000/- was an escapement assessment. Therefore, the statutory notice u/s 143(2) & 142(1) of the I. T. Act, 1961 were issued and served upon the assessee. The search and seizure action was taken against the Shri Jagdish B. Ahuja Director & Promoter of M/s. Ahuja Group and it was found that the Ahuja Group paid an amount of Rs. 50, 00, 000/- to the assessee and thereafter the assessee returned the same but on appraisal of the record, no entry of any kind was found, therefore, the said transaction was added to the income of the assessee u/s 69A of the I. T. Act, 1961. Feeling aggrieved the assessee filed an appeal before the CIT(A) who allowed the claim of the assessee, therefore, the revenue has filed the present appeal before us. ISSUE NO. 1 & 2:- 5. The Ld. Representative of the Revenue has argued that the assessee has entered into the cash transaction to the extent of 50, 00, 000/- with the Ahuja Group which was not disclosed by him. In his audit report (form 3CD) of assessee failed to prove the genuineness of the loan, therefore, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash, as alleged, against the receipt of cheques. On the other hand the Id AO has believed the evidence (supporting documents) submitted before him was engineered to explain bogus investment saying that the those who involved in accommodation entries m an organized way are meticulous in arranging the make-believe documents. He further believed that the said key-persons of Ahuja group have given categorical statements stating that they have involved only in bogus transactions by giving accommodation entries by giving cheques in exchange of cash through their group entities. The Id AR on the other hand argued that the AQ has ignored the fact that all the statements were retracted by Pravin Kumar Jain and all his associates. It is alleged that the AO failed to collect further information and not made any efforts to disprove the genuineness of the transactions of the ban transaction. The Ld AR has argued that for invoking the provisions of section 59A, the appellant should be the owner of the asset i. e, cash in the instant case which the AO has not proved that cash was in the possession of the appellant It was also argued by the AR that the AO has not made any independent enquiry, not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee as not satisfactory is required to be based on proper appreciation of material and other attending circumstances available on the record The opinion of the Assessing Officer is required to be formed objectively with reference to the material on record fife. Once the explanation of the assessee is found unbelievable of false the Assessing Officer is not requited to bring positive evidence on record to treat amount in question 35 income of the assessee. While considering the explanation of the assessee, the Assessing Officer has to act reasonably - application of mind is the sine qua non for forming She opinion (Hi) Phrase appearing in the section - nature and sources of such credits - should be understood in the perspective, so that genuineness of (he transaction can be decided on merits and not on prejudices Courts ate of the firm view that the evidence produced by the assesses cannot be brushed aside in 3 casual manner. Assessee cannot be asked to prove impossible Explanation about 'source of source' or 'origins of the origin' cannot and should not be called for while making inquiry under section. (iv) In the matters related to section 68 burden of proof cannot be disch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness and credit worthiness of all the lending entity 2. 4. 4 As seen from the above, the appellant has furnished all the documents and details proving conclusively the three ingredients of identity, creditworthiness of the lending concern and The genuineness of the transaction. The amount was paid by lender from its running bank accounts which were duly accounted and confirmed by the appellant. In view of the above discussion. I hold that the loan amount of Rs. 50, 00, O00/- advanced by Ahuja Properties can not be doubted and addition made by the AO LI/S 69A of the Act cannot survive the test of appeal I therefore direct the AO to withdraw the addition. This ground is allowed. " 6. On appraisal of the above said finding, we noticed that the CIT(A) has considered this fact that the Assessing Officer has filed the relevant details of unsecured loan to prove the identity, creditworthiness and genuineness of the transaction. The assessee disclosed the name, address, PAN, IT particulars, confirmations, bank statement etc. The transaction was effected through banking channel. The AO relied upon the statement of Mr. Jagdish B. Ahuja Director and Promoters of M/s. Ahuja Group recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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