9911796707
TMI Blog2018 (5) TMI 1904X X X X Extracts X X X X X X X X Extracts X X X X ..... enue is directed against order of the ld. Commissioner of Income Tax (Appeals) dated 17.04.2017 and pertains to the assessment year 2011-12. 2. The grounds of appeal read as under: 1. On the facts and in the circumstances of the case and in the law, the Ld CIT(A) erred in deleting the addition of ₹ 37,75,0147- made u/s 68 of the I.T. Act, on account of unexplained cash credit as the assessee filed to prove the identity and creditworthiness of the lender, 2. 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the group who provide accommodation entries of bogus loan. The Assessing Officer received an information that the assessee has also taken loan of ₹ 35,00,000/- from a concern found in the list of entry providers related with Bhanwarlal Jain group of cases namely M/s Ankita Exports. The Assessing Officer asked the assessee to show cause as to why loan taken from M/s Ankita Exports should not be disallowed and added to the total income. As per the assessment order the assessee filed his reply along with the bank statement, ITR and confirmation of the loan provider. The Assessing Officer however, discussed in detail the modus operandi of giving accommodation entries employed by the Bhanwarlal Group of cases. The Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng channels. Further, the fact that interest has been paid against the loan also strengthens the genuineness of transaction. The creditworthiness of the lender can be established from bank statements and balance sheet of the lender which were, filed before the AO. 3.6 From the assessment order, it is seen that the AO had issued summons 131 of the Act to the husband of the appellant who was authorized to be sent before the AO. It is seen from the assessment order that the husband of the appellant has clearly confirmed in the statement recorded u/s 131 of the Act that the appellant had taken loan from M/s Ankita Exports. It was also clearly stated in the statement that interest has been paid against the loan. The AO had asked the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in detail the facts related with BhanwarlaS 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 litor as well as the genuineness of transaction. 3.7 Recently the Hon'ble Bombay High Court has passed an order in WP No. 167 of 2015 dated 15.04.2015 in the case of M/s Rushabh Enterprises Vs ACIT 24(3) and Ors. In this case also, the assessee had taken loan from concerns related with Bhanwarlal Jain group of cases. In its order the Hon'ble Bombay High Court in addition to deciding the legal validity of reopening of assessment also discussed the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Against the above order, the Revenue is in appeal before the ITAT. 6. Upon careful consideration I find that in this case assessing officer has despite noting that there were overwhelming evidence that the amount of loan claimed by the assessee was received from bogus entity floated by Bhanwarlal Jain group did not bother to issue any notice whatsoever to the lender in this case. Thereafter, after committing this fatal error, the assessing officer proceeded to refer to the case of Bhanwarlal Jain group and reject the assessee's contention. 7. Upon assessee's appeal, the ld. Commissioner of Income Tax (Appeals) has referred to all the evidences regarding the loan submitted by the assessee which inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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