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TMI Blog2020 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... all the documents proving identity , creditworthiness of the parties and genuineness of the transactions and therefore the addition can not be made u/s 68 - Decided in favour of assessee. Interest expenditure paid on unsecured loans - HELD THAT:- Since we have dismissed the grounds raised by the revenue challenging the deletion of unsecured loans by holding that the addition made by the AO is not correct by following the order of the Coordinate bench in assessee own case in earlier years. Therefore the ground on disallowance of interest on these loans can not be disallowed. Accordingly the ground no. 3 is dismissed by upholding the order of ld. CIT(A). - Shri Rajesh Kumar, Accountant Member And Shri Ram Lal Negi, Judicial Member For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... att and companies not controlled by Pravin Jain were bogus in nature and hence no opportunity for cross examination was provided to the assessee during the assessment proceedings. 3. In the facts and circumstances of the case and in law, the CIT(A) erred in deleting the disallowance of interest expense of ₹ 1,18,31,274/- given companies controlled by Pravin Jain and companies not controlled by Pravin Jain, without considering the fact that the unsecured loans of ₹ 4,50,40,000/- purported to be taken by the assessee company were not genuine and hence the interest expense claimed on the same cannot be allowed. 3. At the outset, the learned counsel for the assessee submitted that the issue is squarely covered by the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has also borrowed money from other entities which are not directly connected with Shri Pravin Kumar Jain but Shri Pravin Kumar Jain has arranged these accommodation entries. Total money borrowed from these three entities, viz. Venus Portfolio Finance Pvt. Ltd., Pacheli Enterprises Ltd. and Arya Global Shares Securities Ltd. was ₹ 1,83,00,000/-. Accordingly, show cause was issued to the assessee to prove the three ingredients under Section 68 of the Act - identity, creditworthiness and genuineness of the transactions, failing which why the same should not be added to the income of the assessee. The assessee, in order to prove the genuineness, filed various details and documents comprising of copies of loan confirmatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rse of assessment proceedings he had furnished confirmations from all the loan parties, copies of the acknowledgements of returns of income, copies of the financial statements, copies of the bank accounts etc. During the course of appellate proceedings, details of the tax deducted at source alongwith copies of Form 16 have been obtained and placed on record. The receipt and repayment of loans are evidenced from the bank statements. Further, there is no record of any cash deposits or withdrawals in these bank statements. Other than relying upon the statements of Shri Pravin Jain and Shri Manish Shah without considering their retractions, the A.O. has not brought anything to show that the loans taken by the appellant are bogus. Reliance is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s genuine on the ground that the assessee has discharged the onus cast upon him as he has filed all the documents proving identity , creditworthiness of the parties and genuineness of the transactions and therefore the addition can not be made u/s 68 of the Act. The relevant portion of the order is reproduced below :- 41. We have carefully considered this proposition. We note that the ld. Counsel of the assessee has referred to several case laws in this regard that when the assessee has supplied all the documents the onus is discharged. In this regard, the ld. Counsel of the assessee has placed reliance upon the several case laws including that from Hon'ble Delhi High Court in the case of Gangeshwari Metal Pvt. Ltd. (supra), CIT v. Vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n letters, bank statement, financial statements of the corporate entities. Hence, in our considered opinion, the identity, creditworthiness, genuineness of the transaction has been proved by the assessee and the onus cast upon the assessee has been discharged. In the background of the aforesaid discussion and precedent, we find that the ld. CIT(A) has passed a well reasoned order supported by appropriate case laws duly rebutting all the findings of the A.O. Hence we uphold the order of the ld. CIT(A). Since the facts in the current year are materially same, We, therefore, respectfully following the order of the coordinate bench, dismiss grounds of appeal nos. 1 and 2 of the Revenue by upholding the order of ld. CIT(A). 8. Ground of appeal n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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