9911796707
TMI Blog2020 (5) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmation with name, PAN, copy of Income-tax returns, balance sheet Profit Loss Account computation of income are furnished and same reflected in their books of accounts - addition so made is rightly deleted by the Ld. CIT (A). In view of these facts and circumstances, we do not find any infirmity in the order of CIT (A), accordingly, same is upheld. Accordingly, all the grounds of appeal of as taken by the Revenue are therefore, dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ESIC of ₹ 23,20,130/- and addition of ₹ 12,89,25,938/- u/s.68 of the Act. However, the addition made u/s.68 was left out to be added in computation of income hence, same was later added by the AO vide order u/s.154 dated 09.04.2014 of the Act. The AO noticed that the assessee has taken total unsecured loan of ₹ 14,76,38,600 from 56 persons, out of which 54 are based at Ranchi and remaining two are group concerns of the assessee. The AO had issued commissions to DCIT, Circle-1, Ranchi and ACIT-TDS, Circle- Ranchi under section 131 (1)(d) of the Act to conduct enquiries in case of the lenders based at Ranchi. The said officers have sent the enquiry reports, which are framing part of assessment order. The findings of the AO as per chart is as under: S. N. Name of the Lenders Alleged Loan (including interest) in Rs. Findings of enquiry 1 Akshay Kumar Singh HUF 6,88,738 including interest ₹ 61,438 The person has neither been found on enquiry nor produced by the assessee. Further, creditworthiness and genuineness of transaction also not proved. Several features of accommodation entries provider detected from bank statement 2 Akshay Kumar Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kumar Das. Identity proved but creditworthiness not proved. She is found to be receiving entries from none other than some of the entry providers mentioned in the current list itself. Claim to be earning commission from Mr. Rajesh Kumar Prahladka but no evidence submitted. 16 Krishna Singh 1,31,824 Son of Shri Jeevan Kumar Das. However, bank accounts statement reflects the same typical characteristics as of entry providing entities. Genuineness of transactions also not proved. 17 Mangal Kumar Singh HUF 3,60,673 The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement 18 Mangal Kumar Singh 3,23,892 The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement 19 Manju Devi 2,19,706 Wife of Shri Jeevan Kumar Das. However, bank accounts statement reflects the same typical characteristics as o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 28 Poonam Devi 2,09,650 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 29 Priya Thathera 1,65,744 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 30 Pushpa Devi Saraf 1,41,616 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 37 Ruhi Enterprise 75,03,040 This is a proprietorship concern of Shri Gayanendra Kumar Singh, who has neither been found nor produced by the assessee on commission inquiry. First the assessee provided wrong name as Gyan Singh. However, inquiry revealed the correct name. It is seen from the bank account statement that even though the fund transfer is out of over draft, the person has a tendency of returning the debt by frequent and substantial cash deposits. Despite a specific request, the assessee failed to produce the cash book etc of the alleged lenders to substantiate the source of such cash deposits. Creditworthiness and genuineness not proved. 38 Shivam Enterprises 2,80,83,183 Identity not proved. No confirmations filed. Genuiness of the transaction not proved. Creditworthiness cannot be established. On the contrary, it is seen that there are cash deposits of nearly ₹ 3,00,00,000/- in the same bank account. Despite a specific request, the assessee faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s has been routed through the net work of the same person / concerns. 45 Sandip Kejriwal 1,68,809 Un-signed confirmations. Bank account Statements and other document could not establish the creditworthiness and genuineness of transaction. 46 Vishnu Kejriwal 11,91,240 Un-signed confirmations were filed. Later on, the assessee filed some letters in the name of confirmations, which cannot be relied upon in view of discrepancies. Bank account statement and other documents could not established the creditworthiness and genuineness of transaction. 47 Vishnu Kejriwal HUF 1,32,636 "D' 48 Vind Devi Kejriwal 3,86,811 Confirmation not filed at all.Bk Account Statement and other document could not established. The creditworthiness and genuineness of transaction TOTAL 12,89,25,938 8. Thus, In the light of above fact and findings, the AO made addition of ₹ 12,89,25,938 under section 68 of the Act. 9. Being, aggrieved, the assessee filed an appeal before the Ld. CIT (A). The findings given by the CIT (A) in his appellate order is reproduced as under: "7.1 The AR submitted detailed submissions" dated 24. 06. 2015 and 28.01.2016 and also paper book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income, and balance sheets of the lenders. In view of this, it is apparent that the appellant has filed the basic details. 8. Comparison between enquiry reports / show cause notice and the conclusions made in assessment order 8A. The Id AO has given his findings / observation in the case of all lenders in form of table in para 15 of his order. The same is reproduced in first 4 columns of the Annexure -1, however, the 5th column is added by the undersigned, wherein the actual findings of, said enquiry reports are given. Annexure -1 is integral part of this order. 8(B) (i) As evident in column 4 of Annexure - 1, the Id AO observes in case of 42 lenders, neither found in address' nor produced by assessee'. However, on perusal of both the enquiry reports (Exhibits 1 & 2) to assessment order). it is evident that only 8 persons {5 as per DCIT Circle -1, Ranchi and 3 as per ACIT (TDS) Ranchi} were not found in the stated address. (ii) It, is also seen that, the two inquiry reports together speak of only 27 lenders out of the 54 lenders based in Ranchi. But, still the ld AO has given the above finding in case of the 42 lenders without disclosing the basis of such a fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri. N. K. Kejriwal is a Tax Consultant and CA, it is his profession to file ITRs and he is providing this service to more than 2000 persons. The Id AO has acknowledged th.at the lenders consists of (1) Shri N.K. Kejriwal and his family (2) close associates of Shri N .K. Kejriwal and family members of these close associates. It is also stated in assessment order that many of them are shareholders in appellant - company. It is common for people who know each other to make common investments and also to flock to same Tax Consultant or legal advisor. Moreover, out of said 33, about 12 are family members of Shri. N.K. Kejriwal and his associate Shri Jeevankumar Dash. On porusol of above facts and circumstances, the adverse inference drawn by Id AO on this reason is not justified. (ix)) AO' s observes as under in para 8.2 (iv) "Shri J K Das family members had no clue regarding the lending of money to the appellant - company. They said that 0/1 their financial affairs are looked after by Shri. J. K. Dos. The Id AO tries to draw conclusion that since the family members do not know of the said loans, the loans cannot be held as genuine. I have examined this issue; It appears ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not Gyan Kumar Singh and the correct person is a resident of Near Akhil Memorial School, Sukhdeo Nagar, Ranchi -5. It was also found. that Shri Gyan Singh stands as a proprietor of concerns such as Gyan Enterprise, Ruhi Enterprise and Shree Ganesh Enterprise having office addressed at 1, Neelkuni Sukhdeo Nagar, Raw Rod, Ranchi. It is also seen that these concerns are showing business activities relating to manufacturing and trading of coke and crushing activity. The total of unsecured loans received by our assessee from Gyan Enterprise I Ruhi Enterprise and Shree Ganesh Enterprise comes to ₹ 1, 77, 00, 000, ₹ 73,00,000/- and ₹ 75,00,000/- respectively. (v} Another alleged lender namely Shivam Enterprise is owned by one Shri Aditya Kumar Dhanuka. This concern is shown to be engaged in transportation and trading of coal. " However, it is seen from the report of the ACIT (TDS), Ranchi, the said Shri Gyankurnar Singh was identified and ITR of his concerns were examined by the ACIT (TDS). M/s Gyan Enterprises has turnover to the extent of ₹ 3.27 crores and it has lent a sum of ₹ 1.77 crores, which has also been repaid by the appellant during the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived from M/s Motilal Oswal on online shore broking firm. The conclusion of the Id AO is not appreciable as amounts transferred to and from M/s Motilal Oswal are towards purchase or sale of securities alone through Motilal Oswal brokerage portal. The actual source of fund is the buyer of the shares. The above amounts ore not loans received from M/s Motilal Oswal to say that lenders have common source. The Id AO has failed to appreciate this. There is no finding regarding the purchaser of the said shares. Further, the Id AO argues that why would anybody sell shares at a loss and invest as loan in appellant - company ? The question can be answered only by the said seller and the Id AO has not asked him to clarify this. In the share market, there is bound be some selling of shares at loss on some occasions. People may sell at loss to stop further loss or to shift to more secure investments or with better returns. Moreover, here the loans are given to the company wherein the lenders are share - holders, and they have some control. 9.3 Cases in which the lenders were not found in the given addresses, and the case of M/s Jyoti Vikas Industries. 9 3.1 As regards the eight perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om M/s Jyoti Vikas Industries on 08.07.2010 and repaid by appellant on 03.09.2010. It is also seen that Shri Kamal Dhanuka has been named as accused in FIR for soft coal scam involving loot of ₹ 8.92 crores by CBI. Ranchi. Ironically, the FIR serves as evidence of identity as well as creditworthiness of the lender to advance the said loan. 10. Identity 10.1 The 2 enquiry reports give findings regarding 27 ( 14 + 13) numbers of lenders out of 56. In that 27, only eight persons were not found at the given address, whereas rest 19 were found living at .the stated address. Hence, the adverse inference drawn by the Ld AO regarding 49 persons (i.e. 30 + 19) is patently wrong. The identity of the 49 lenders is beyond doubt. Regarding the rest 8 persons, I have given my finding in para 9.3.1 (supra). In all the cases, the appellant and also Shri. Jevankumar Das have furnished the following (i) confirmation (ii) ITR copy (iii) Bank statements. In view of the extensive documents provided by the appellant before the AO, and also by the lenders before the DClT , Circle (1), Ranchl . I hold that the identities of the said lenders stand established and the inferences / conclusion dra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res through M/s Motilal Oswal share Brokers. The immediate source of the said loans are apparent. Hence, there is no relevance of discussion on annual income of the lenders. The AR has submitted that 'even though the annual income were to be adopted, for the purpose of following the creditworthiness of the persons , the total incomes are not so weak as to fail to justify the amounts advanced'. The chart showing annual income , capital, amount lent is furnished by the AR and the same are examined. 10.2.3 Analysis of Bank accounts : The AO states that several lenders sold their shares / investments at loss through Motilal Oswal Securities and advanced the same as loan to the appellant. The Id AO concludes that the pattern followed by the lenders is abnormally identical as the lenders do not have any commercial connection among themselves. The Id AO further states that. the lenders who have received credit from other than Motilal Oswal Securities, it is seen that cheques are issued from the same cheque Book. On examination of records, I find that even these file lenders have received cheques from same cheque Book and the cheques are in the name of Motilal Oswal only. So, immedia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g directors of the appellant - company. No specific finding from examination of bank accounts or documents filed by the appellant / Jeevan kumar Das has been given In view of the above, the loans appear prima facie genuine, and the Ld AO has not given any specific or significant finding to refute same. 11 Loans not added 11.1 It is seen that, the ld AO has not made addition of the following loans. However, there is no discussion on the same in the assessment order. Sr N o. Name PAN Opening Balance Paid /Debit Received / Credit Interest credited (net of TDS) Balance 45 Ajay Kejriwal (HUF) AADHA2 805E -36671 0 105000 14213 -155884 46 Anup Kejriwal HUF AADHA3 790G 0 0 152000 14842 -16642 47 Hinddustan Industries (Prop Anilku mar Kejriwal ADLPK44 27F -6536800 4300 000 13600 000 1286 451 -17123251 49 Sanjay Kejriwal AJLPK38 96Q -104911 0 643500 72069 -820480 50 Sanjay Kejriwal (HUF) AAIHS00 93K 0 0 201000 19329 -220329 51 Suman Kejriwal AJKPK39 01C -177914 0 185000 37005 -399919 52 Sunita Kejriwal AFSPK18 83N (1644 53) 0 13840 00 68546 -1288093 56 In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sive of name, address, confirmation. ITR, bank account, balance sheet in respect of all creditors / lenders are furnished and when it had been found that loan accounts were duly reflected in balance sheet and loans were furnished through cheques, the AO is not justified in making additions. ii) even when the bank account of the lenders show cash deposits , it cannot be automatically presumed that the cash belongs to appellant and the AO is free to examine said cash deposits in the assessments of the said lenders ( in instant case no substantial cash deposits have been found). iii) Once the above details are filed, it is for the AO to do enquiry and give findings to refute the documents with cogent reasons. (iv) The Hon'ble jurisdictional High Court of Gujarat, in Sr No.3 above, has held as under:- " Once the assessee has established that he has taken money by way of account payee cheques from the lenders who are all income tax assessees whose PAN have been disclosed, the initial burden under section 68 was discharged. It further appears that the assessee had also produced confirmation letters given by those lenders. [Para 15] Once the Assessing Officer gets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 91 against Gross Profit Rate of 9.05% on turnover of ₹ 191,83,08,939 shown in the immediate preceding year. The Ld. CIT (DR) submitted that the AO has observed that the assessee has taken unsecured loan of ₹ 14,76,38,600 from 56 persons. Out of these, 54 persons are from Ranchi, Jharkhand and remaining two namely Kejriwal Dyeing & Printing Mills Pvt. Ltd. and Kejriwal Integrated Textile Park Pvt. Ltd. are the sister concern of the assessee from Surat. The Ld. CIT (DR) submitted that the AO had issued commission under section 131 (1) (d) of the Act to DCIT- TDS Ranchi to make enquiries with regard unexplained creditors shown by the assessee. The inquiry report received by the AO were made part of assessment order as Exhibit - Exhibit-I and II. The AO discussed the finding of enquiry report in para No. 8.2 to 87 and summarized the conclusion in chart form in para 8.8 of his order. The Ld. CIT (DR) contended that the pattern of deposits and issuance of cheque established that not only the alleged lenders are not have any creditworthiness and mere accommodation entries through their bank account. The Ld. CIT (DR) contended that that mere filing of return of income of such l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the associated risk. The learned counsel for the assessee pointed out that the interest paid to these entities are @ 12% , hence, the observation of the AO are mere suspicion notice conjecture. With regard to AO`s observation at para No. 13.9 in the assessment order, several alleged lenders are share applicant in earlier years, the learned counsel for the assessee submitted that the loan has been given from CCA account and from Kejriwal Dyeing and Printing Mills Pvt. Ltd. whose financial have been accepted by the same AO in the assessment order made under section 143 (3) of the Act of even date. 13. The learned counsel for the assessee referred point no. 9 at Page No. 3 of appellate order wherein Ld. CIT (A) has mentioned the claim of the assessee that it is surprising that cash deposits of ₹ 15, 00,000/- in the case of M/s. Kejriwal Dyeing & Printing Mills Pvt. Ltd. has been considered as unexplained in the case. Whereas the ld. AO himself has scrutinized the said assessee u/s. 143(3) and have verified the books of accounts of M/s. Kejriwal Dyeing & Printing Mills Pvt. Ltd. This shows the predetermination of the state of mind of the Ld.AO which superseded the facts availa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment record no such summons or letters were found. The enquiry report forwarded by the DCIT Circle-1, Ranchi mentions that Shri J. K. Das was asked to produce copies of ITR, bank details and computation of income for last 3 assessment years and said Shri J.K. Das appeared and produced the said documents in the case of all lenders except M/s. Jyoti Vikas Industries. The enquiry reports encloses the said documents but there is no finding given from the examination of said documents. The learned counsel for the assessee referred para No. 9 of appellate order and submitted that CIT (A) has observed that the enquiry report of ACIT (TDS) Ranchi revealed that M/s. Gyan Enterprise was having turnover of ₹ 3.27 crores and who have lent a sum of ₹ 1.77 crores. This loan was repaid by the Appellant during the year itself. M/s. Ruhi Enterprise had turnover of ₹ 2.88 crores, it has lent ₹ 75 lakhs, and the Appellant has repaid the same in the same year. Similarly, M/s. Ganesh Enterprise who lent ₹ 73 lakhs, which has been repaid by the Appellant in the same year. The ACIT (TDS) Ranchi or the AO has not given any adverse finding in respect of creditworthiness ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be asked to prove the source of credits in his books of accounts but not the source of source. 15. The learned counsel relied in the case of in the case of CIT v. Apex Therm Packaging (P.) Ltd. [2014] 42 taxmann.com 473 (Gujarat) wherein it was held that where name, address , PAN copy of IT Returns, balance sheet , Profit & Loss Account of all creditors / lenders as well as their confirmation has been furnished , Assessing Officer could not make addition on account of unsecured loan and interest thereon. 16. The learned counsel relied in the case of CIT v. Orissa Corporation (P) Ltd. [1986] 159 ITR 78 (SC)/ 25 Taxman 80(SC), the Hon`ble Supreme Court observed that when the assessee furnishes names and addresses of the alleged creditors and the GIR Numbers, the burden shifts to the Department to establish the revenue's case and in order to sustain the addition the revenue has to pursue the enquiry and to establish the lack of creditworthiness and mere noncompliance of summons issued by the Assessing Officer under section 131 by the alleged creditors will not be sufficient to draw an adverse inference against the assessee. 17. The learned counsel for the assessee submitted that m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000 in the case of M/s. Shivam Enterprise (item No.38), and loan of ₹ 75,00,000 from M/s. Shree Ganesh Enterprise (item No.39) have been taken from CCA bank account. Hence, these loan are cannot be treated as non-genuine as some have been taken through bank by way of overdraft from CCA Account. Similarly, loan of ₹ 15 00,000 from M/s. Kejriwal Dyeing and Printing Mills Pvt. Ltd. taken in cash has been accepted by the same AO in assessment order passed under section 143 (3) of the Act on same date, in the case of said concern and no adverse inference has been drawn. Therefore, the law does not allow the AO to consider the said loan as non-genuine transaction, when he himself has accepted the same in assessment in respect of said concern. With reference to AO`s observation`s in para 12.2 at Page No. 28 of assessment order that why these person having weak financial credential would advance unsecured loans the assessee company when return on such loans does not justify the associated risk. The learned counsel for the assessee pointed out that the interest paid to these entities are @ 12% , hence, the observation of the AO are mere suspicion and conjecture only. We obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction in respect of these concerns. The learned counsel for the assessee further submitted that the lenders were not asked to be produced by the AO before him. We note that learned counsel for the assessee referred para No. 9.3.1 to 9.3.2 of appellate order and submitted that Ld. CIT (A) has observed that there is contradictory reports of the AO. It was further observed that the assessee had filed all address of the creditors but due to time gap, it is possible that at the time of enquiry they will have shifted to new address. However, copies of incometax returns and copy of new address was filed before CIT (A) in respect of eight person who were not found at the stated address as per enquiry reports. In view of these facts and circumstances, we are of the considered opinion that Ld. CIT (A) has rightly deleted the addition made under section 68 of the Act by the AO. 19. We further observed that the ld. CIT (A) has examined each and every creditors/ lenders and given his factual findings of enquiry report as well as facts of each lenders in column 5 of Annexure-A forming part of his appellate order which is reproduced as under: Sr. No. Name of Lender Remarks Statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , computation and copy of bank accounts given before the inquiry officer, at Ranchi. 6 Chandan Sarawgi ₹ 1,32,922 (Loan- 1,21,000 + Interest- 11,922) The person has neither been found on 1nqu1ry nor produced Further, creditworthiness & genuineness of transactions ore also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 7 Deepmala ₹ 5,10,817 (Loan- 4,65,000 + Interest- 45,817) The person neither has been found on 1nqu1ry nor produced Further, creditworthiness & genuineness of transactions ore also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 8 Gyan Enterprises ₹ 5,10,817 (Loan- 4,65,000 + Interest- 45,817) This is a proprietorship concern of Shri Gayanendra Kumar Singh, who has neither been found nor produced by the assessee on commission inquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the name Jeevan Kr Das. He is an associate of Sri N K Kejriwal. He has produced ITR copies, bank accounts, etc of all the lenders. 13 Juhi Kumari ₹ 2,19,706 (Loan- 2,00,000 + Interest- 19,706) Daughter of Shri Jeevan Kumar Das. Identity proved but creditworthiness not proved. She is found to be receiving entries from none other than some of the entry providers mentioned in the current list itself. Claims to be earning tuition income, but no evidence submitted. She is daughter of Jeevan Kumar Das. ITR copy and bank account copy, ITR produced 14 Jyoti Vikash Industries ₹ 50,84,329 (Loan- 50,00,000 + Interest-84 ,329) Assessee neither found nor produced. No confirmations filed. Not even proper documentary evidences filed. Case fails on all the three parameters. He (KJD) could not produce the document of Jyoti Vikash Industries (PAN- ACWPD0779M) PAN belongs to Shri Kamal Kr Dhanuka and his bank account has been attached by the CBI in coal scam case. The PAN belongs to Kamla Kr Dhanuka. Moreover, the office of M/s Jyoti Vikash Industries was not found on the given address. 15 Kiran Singh ₹ 2,52,662 (Loan- 2,30,000 + Interest- 22,662) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he genuineness of transaction. Several features of Accommodation entry providers detected from the bank account statement. His PAN is AAAPQ9633 and is resident of east rahmat colony, doranda, Ranchi. The house in which he is leaving is his own property. At present his annual income is approximately ₹ 2 Lac. There is no other source of income. Earlier, he retired from swarnrekha enterprises. Hatia, Ranchi and presently practicing in sales tax, income tax matters. 22 Mona Sarkar ₹ 2,92,681 (Loan- 2,67,000 + Interest- 25,681) The person was not traceable on inquiry nor produced by the assessee. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 23 Mousami Sinha ₹ 4,06,128 (Loan- 3,70,000 + Interest- 36,128) The person was not traceable on inquiry nor produced by the assessee. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 29 Priya Thathera ₹ 1,65,744 (Loan- 1,51,000 + Interest- 14,744) The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 30 Pushpa Devi Saraf ₹ 1,41,616 (Loan- 1,30,000 + Interest- 11,616) The person was not traceable on inquiry nor produced by the assessee. It was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 35 Ramesh Kumar Sinha ₹ 2,20,626 (Loan- 2,01,000 + Interest- 19,626) The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 36 Roshanlal HUF ₹ 6,15, 771 (Loan- 5,60,000 + Interest- 55,177) The person was not traceable on inquiry nor produced by the assessee. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ganesh Enterprises ₹ 76,47,946 (Loan- 75,00,000 + Interest- 1,47,946) This is a proprietorship concern of Shri Gayanendra Kumar Singh, who has neither been found nor produced by the assessee on commission inquiry. First the assessee provided wrong name as Gyan Singh. However, inquiry revealed the correct name. It is seen from the bank account statement that even though the fund transfer is out of over draft, the person has a tendency of returning the debt by frequent and substantial cash deposits. Despite a specific request, the assessee failed to produce the cash book etc of the alleged lenders to substantiate the source of such cash deposits. Creditworthiness and genuineness not proved. Shri Ganesh Enterprises is engaged in the business of crusher at Barajamda. 40 Subodh Sinha HUF ₹ 1,59,159 (Loan- 1,45,000 + Interest- 14,159) The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness & genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report silent about his person. Copies of ITR, computation and copy of bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thiness or genuineness of transaction in respect of these lenders are concerned. The learned counsel for the assessee further submitted that the lenders were not asked to be produced by the AO before him. The learned counsel for the assessee referred para No. 9.3.1 to 9.3.2 of appellate order and submitted that Ld. CIT (A) has observed that there is contradictory reports of the AO. It was further observed that the assessee had filed all address of the creditors but due to time gap, it is possible that at the time of enquiry they will have shifted to new address. However, copies of income-tax returns and copy of new address was filed before CIT (A) in respect of 8 person who were not found at the stated address as per enquiry reports. The learned counsel for the assessee referred para No. 10 of appellate order wherein the CIT (A) has examined and discussed h issue of identity, creditworthiness and analysis of bank account and genuineness of transaction. It was submitted that that as per para No. 11 of CIT (A) order the AO has not made addition in respect of person mentioned in table at para No. 11.1 observed that the AO has not made addition in respect of Serial No. 45,46,47, 49,50, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the terms of section 68 of the Act by providing identity of creditors and same has not been doubted by the AO also. Further, the assessee has proved the creditworthiness by way of filing ITR returns, bank account, balance sheet, confirmation of the creditors. The assessee is not expected to prove the genuineness of cash deposits in bank accounts of those e creditors because under the law the assessee can be asked to prove source of credit but not the source of the source as held by the Hon`ble Bombay High Court in the case of Orient Trading Co. v. CIT [1963] 49 ITR 723 (Bombay). Therefore, in such a situation and considering above fact and finding , we are in complete agreement with the reasoning given by the Ld. CIT (A) that when full particulars, inclusive of the confirmation with name, PAN, copy of Income-tax returns, balance sheet Profit & Loss Account computation of income are furnished and same reflected in their books of accounts. Further, the findings recorded by the Ld. CIT (A) are also supported by the decision of Hon'ble Gujarat High Court and Hon`ble Supreme Court as discussed above. The addition so made is rightly deleted by the Ld. CIT (A). In view of these facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
