9911796707
TMI Blog2018 (12) TMI 1618X X X X Extracts X X X X X X X X Extracts X X X X ..... the loan had passed through banking channels. At the same time, the AO had not led any evidence that any cash was paid by the assessee to the parties who had given the loan. The statement of Bhanwar Lal Jain on which the AO has placed complete reliance was not given to the assessee. The proprietor of M/s Daksh Diamonds, Shri. Ritesh Siroya replied to the notice issued by the AO u/s 133(6) of the I.T. Act and offered to produce the party before the AO for examination. On the contrary, the AO merely relied upon the statement given by Shri. Bhanwar Lal Jain and the modus operandi and the affairs of BhanwarLal Jain group to make the addition. Also neither Mr. BhawarLal Jain nor Mr. Ritesh Siroya had taken the name of the assessee at any po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious companies operated by him and he was found to be an entry operator without any genuine business activity. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law as well as on facts in ignoring the fact that all transactions entered with Shri Bhanwar Lal Jain and various concerns operated and controlled by him were in nature of accommodation entries. 4. For the above mentioned reason and any other reasons that may be urged at the time of hearing, it is requested that the order of the CIT(A) be quashed and that of the A.O. be restored. 5. The appellant craves leave to amend or alter any ground or add a new ground, which may be necessary. 4. As per the facts of the present case, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleting the made by the AO u/s 68 of the Income Tax Act, 1961 on account of unsecured loan from the person engaged in providing the accommodation entry, therefore we thought it fit to dispose of the same by this common order. 6. We have heard counsels for both the parties at length and we have also perused the material placed on record as well as the orders passed by revenue authorities. Before we decide the merits of the case, it is necessary to evaluate the orders passed by Ld. CIT(A). The Ld. CIT(A) has dealt with the above grounds raised by the revenue in para no. 5 of its order. The operative portion of the order of Ld. CIT(A) is contained in para no. 5.2 to 5.2.2 of its order and the same is reproduced below:- 5.2 The subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the modus operandi and the affairs of BhanwarLal Jain group to make the addition. In fact, the extract of the statement reproduced by the AO in the assessment order of Shri. Bhanwar Lai Jain does not speak about providing accommodation entries for the loans. Therefore, there can be no inference drawn from the statement that Shri. Banwarla Jain or the concerns operated by him, provide entries for loans. Neither Mr. BhawarLal Jain nor Mr. Ritesh Siroya has taken the name of the appellant at any point of time to state that they had given an accommodation entry for loan to him Whatever inferences the AO has drawn have no connection whatsoever with the loan taken by the appellant. The AO has not controverted the evidences produced by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After having gone through the facts of the present case as well as orders passed by the revenue authorities, we find that Ld. CIT(A) had appreciated the details provided by the assessee which leads to prove the genuineness of loans. The assessee had provided income tax return acknowledgement of M/s Daksh Diamonds, account confirmation, bank statement of the assessee as well as M/s Daksh Diamond, audited financial statement, details of repayment of loan. The Ld. CIT(A) while appreciating that the assessee had proved the identity, creditworthiness and genuineness of loans had taken into consideration that the transactions of both the loan received and the repayment of the loan had passed through banking channels. At the same time, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnels, both the parties had confirmed the transactions, the genuineness of the transactions has been established and the creditworthiness of the lender was also established. Thus considering all those facts, Ld. CIT(A) had rightly deleted the additions. We have also considered the decision relied upon by the assessee wherein also, the Coordinate Bench of the Tribunal in ITA No. 7079/Mum/16 in the case of ACIT Vrs. Dilip Chimanlal Gandhi and in case ITA No. 1069 to 1071/Mum/17 in the case of M/s Reliance Corporation Vrs. ITO had deleted the additions under the identical circumstances. Moreover, no new facts or contrary judgments have been brought on record before us in order to controvert or rebut the findings so recorded by Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
