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TMI Blog2019 (6) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... vant assessment year is 2012-13. The appeal is directed against the order of the Commissioner of Income Tax-44, Mumbai [in short CIT(A) ] and arises out of the assessment completed u/s 143(3) of the Income Tax Act 1961, (the Act ). 2. The grounds of appeal filed by the revenue read as under: i. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of ₹ 3,54,13,062/- made u/s 68 of the I.T. Act on account of unexplained cash credit as the assessee failed to prove the identity and creditworthiness of the lender. ii. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition u/s 68 of the I.T. Act on account of unexplained cash credit despite the fact that the party from whom the alleged loan was received by the assessee was listed as hawala entry provider who indulged in providing accommodation entry of unsecured loans and related to Bhanwarlal Jain. iii. On the facts and in the circumstances of the case the finding of the Ld. CIT(A) that the AO has only discussed the fact of Bhanwarlal Jain group and the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vkar Diamonds ₹ 15,11,096/- 7. Mehul Gems Pvt. Ltd. ₹ 20,89,358/- 8. Daksh Diamonds ₹ 29,91,600/- 9. Jewel Diam ₹ 11,08,000/- 10. Kothari Co. ₹ 11,08,000/- 11. Minal Gems ₹ 33,24,000/- 12. Rose Impex ₹ 27,70,000/- Total ₹ 3,54,13,062 During the course of assessment proceedings, the AO issued summons to the above parties vide notice dated 31.02.2015 to appear before him. However, no one appeared before him. Only co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion provided by the Investigation Wing can be the starting point of an enquiry, it cannot be a conclusion reached by the AO. The Ld. CIT (A) referred to the judgment of the Hon ble Bombay High Court in the case of M/s Rushabh Enterprises vs. ACIT 24(3) in WP No. 167 of 2015 dated 15.04.2015, wherein the assessee had taken loan from the concerns related to Bhanwarlal Jain Group of cases. The Hon ble High Court in para 8 of its order stated as under:- according to her (AO) the revenue has received information from the DGIT (Inv) that the assessee has taken unsecured loans from the above parties by way of unaccounted cash/accommodation entries. We are unable to agree since the petitioner has clearly stated that all the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sums of money to assessee, that too without any collateral security, without interest and without a loan agreement, impugned addition deserves to be confirmed . In the case of NRA Iron Steel Pvt. Ltd . (supra), relied on by the Ld. DR, the AO had issued summons to the representatives of the investor companies. Despite the summons having been served, nobody appeared on behalf of any of the investor companies. The Department only received submissions through dak, which created a doubt about the identity of the investor companies. Thereafter, the AO independently got field enquiries conducted with respect to the identity and creditworthiness of the investor companies and to examine the genuineness of the transaction. Enquiries were made at Mumbai, Kolkata and Guwahati, where these Companies were stated to be situated. On the basis of the detailed enquiries conducted, the AO held that the assessee had failed to prove the existence of the identity of the investor companies and genuineness of the transaction. As mentioned earlier, in the instant case the entire focus of the AO was on the modus operandi adopted by Bhanwarlal Jain Group of cases to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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