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TMI Blog2018 (2) TMI 1916X X X X Extracts X X X X X X X X Extracts X X X X ..... . Though the AO of M/s Basant Marketing P Ltd has taken a different view and held the transactions to be bogus in AY 2010-11, yet the said view of the AO has been set aside by Ld CIT(A), Kolkatta in the appellate proceedings by observing that the view so taken by the AO is not supported by evidences. It is pertinent to note that the order so passed by Ld CIT(A) has been accepted by the revenue and thus has attained finality. Hence the very basis, on which the impugned addition has been made, has failed. From the arguments of the Ld A.R, we notice that the assessee has discharged the onus by proving the identity of the creditor, genuineness of transactions and credit worthiness of the creditor. The financial statements of M/s Basant Marketin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Subsequently, the AO received information that the assessee has received accommodation entries in the form loans and advances from M/s Basant Marketing P Ltd. Hence the AO re-opened the assessment by issuing notice on 26-03-2013. According to the assessee, the notice was served on it only on 01- 04-2013. The assessee sought the reasons for reopening, filed its objections to the same and the AO also disposed of those objections. 3. The assessee had received loan of ₹ 100 lakhs from M/s Basant Marketing P Ltd during the year under consideration and the AO assessed the same u/s 68 of the Act. The reasons given by the AO for assessing the same u/s 68 of the Act has been summarized below:- (a) The CBI (ACB) conducted search at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld CIT(A) held that the transactions defies human probabilities and accordingly confirmed the addition. The Ld CIT(A) took support of decisions rendered by Hon'ble Supreme Court in the case of CIT Vs. Durga Prasad More (82 ITR 540) and other decisions in support of the above said proposition. Aggrieved, the assessee has filed this appeal before us. 5. We heard the parties and perused the record. The Ld A.R submitted that the assessing officer has reopened the assessment and made the impugned addition in consequence to the search conducted in the hands of Shri Arun Dalmia and others. He submitted that M/s Basant Marketing P Ltd is assessed to income tax and the assessments have been completed u/s 143(3) after the search proceedings for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. The Ld A.R further submitted that M/s Basant Marketing P Ltd is regular in filing income tax returns and is registered under Companies Act. Hence its identity is proved. He submitted that the transactions have been routed through banking channels and hence genuineness is proved. He submitted that the assessee has also furnished financial statements of M/s Basant Marketing P Ltd, which shows that it is carrying on trading transactions and was also holding inventories. It has also received dividends from companies. It has also obtained unsecured loans from various parties, which have been used to make investments, to hold inventories and to give loans and advances. He submitted that the Balance sheet, which has been audited, proves the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus in AY 2010-11, yet the said view of the AO has been set aside by Ld CIT(A), Kolkatta in the appellate proceedings by observing that the view so taken by the AO is not supported by evidences. It is pertinent to note that the order so passed by Ld CIT(A) has been accepted by the revenue and thus has attained finality. Hence the very basis, on which the impugned addition has been made, has failed. 10. The AO has also observed that the assessee has failed to discharge the onus placed upon it u/s 68 of the Act. From the arguments of the Ld A.R, we notice that the assessee has discharged the onus by proving the identity of the creditor, genuineness of transactions and credit worthiness of the creditor. The financial statements of M/s Bas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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