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TMI Blog2018 (11) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... N.N. Jambusaria, Ld. AR For the Revenue : Pooja Swaroop, Ld. Sr.DR ORDER PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by revenue for Assessment Year [AY] 2012-13 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-44 [CIT(A)], Mumbai, Appeal No.CIT(A)-44/ACIT 32(3)/ITA-168/15-16 dated 22/09/2016 qua deletion of certain additions of ₹ 106.48 Lacs u/s 68 as made by Ld. AO in quantum assessment u/s 143(3) on 27/03/2015. 2.1 Briefly stated, the assessee being resident individual engaged as commission agent and dealer in shares under proprietorship concern namely V.R. Tours Travels was saddled with impugned additions of ₹ 106.48 Lacs u/s 68. Pursuant to receipt of certain information from DGIT (Investigation), Mumbai , it was found that the assessee obtained loans aggregating to ₹ 106.48 Lacs from 6 entities, the names of which were appearing in the list of beneficiaries of accommodation entries given by entry provider group of Bhanwarlal Jain. The detail of alleged bogus loans taken by the assessee was as follows:- No. Name Amount (Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural Farms Ltd. 301 ITS 384 (DEL). In this case also the CIT(A)s had deleted addition on ground that the said cash credit was appearing in books of assessee over past 4 to 5 years and thus it was not fresh credit entry pertaining to relevant assessment year. The order of the CIT(A) was both by the ITAT Delhi and the Delhi High Court. 3.4. During the course of assessment proceedings, the following details were filed before the AO. Audited books of accounts of assessee Bank statements reflecting receipt of loan and interest payments. Loan confirmations statements Profit loss of parties from whom the loan is obtained Balance sheet of parties from whom the loan is obtained. 3.5 It is the contention of the appellant that during the relevant previous year i.e. FY 2011-12 pertaining to AY 2012-13 only an amount of ₹ 20,50,000/- has been taken as loan. The balance amount of loan totaling up to ₹ 79,00,000/- has been taken in various previous years before the FY 2011-12. The same explanation was given by the appellant before the AO about which the AO has not mentioned anything in the assessment order. The AO has himself mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to discuss in detail the facts related with Bhanwarlal Jain group of cases. The AO has not appreciated the fact that he was not making assessment of Bhanwarlal Jain group of cases. On the other hand, the appellant was able to establish the identity and the creditworthiness of the creditors as well as the genuineness of transactions. 3.7 The Hon'ble ITAT Mumbai in the case of ITO vs Anant Shelters Pvt. Ltd. (2012) 20 Taxrnann.com 153 has enumerated certain principles which would be extremely useful in understanding the issue in hand. It has been stated in the said judgment that over the years, law regarding cash credits have evolved and has taken a definite shape. A few aspects of law U/s 68 can be enumerated 1. Sec. 68 can be invoked when there is a credit of amounts in the books maintained by the assessee, such credit is a sum of money during the previous year and either the assessee offers no explanation about the nature and source of such credits or the explanation by the assessee in the opinion of the AO is not satisfactory. 2. The opinion of the AO for not accepting the explanation offered by the assessee as not satisfactory is required to be farmed objective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments were made by a/c payee cheques which were encashed in the bank account of the petitioner in the regular course of business. We find that the petitioner has also paid interest on this loans after deduction of tax at source and TDS returns are also accordingly filed. There is no dispute in regard to the above. We find nothing to support the said contentions of the revenue. The revenue s contention in the affidavit in reply has no merit. On the other hand, the loans appear to be taken in the regular course of business . 3.11 After considering the totality of facts, the rival submissions, applicable law and on the basis of discussions mentioned above I have come to a conclusion that nature and source of credit in the books of accounts of the appellant stands explained. Consequently, addition u/s 68 cannot be sustained even for the fresh loan totaling up to ₹ 20,50,000/-. As mentioned in para 3.5 the old Loans which were taken earlier cannot be added u/s 68 in the assessment of AY 2012-13. The grounds of appeal no. 1 is accordingly allowed and addition of ₹ 1,06,48,164/- is deleted. Aggrieved, the revenue is in further appeal before us. 4. The Ld. Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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