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TMI Blog2020 (12) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. It is trite law that no addition could be made merely on the basis of suspicion, conjectures or surmises. There is nothing in revenue s armory which would indicate that any cash got exchanged between the assessee and the said entity while accepting as well as while repaying the unsecured loan. We are not inclined to concur with the view of the revenue authorities. Hence, by deleting the impugned addition, we allow ground thus raised before us.Consequently, the interest as claimed on the loans would be deductible from work-in-progress as done by the assessee. - I.T.A. No.6003/Mum/2019 - - - Dated:- 9-12-2020 - Hon ble Shri Amarjit Singh, JM And Hon ble Shri Manoj Kumar Aggarwal, AM For the Assessee : Shri Neelkanth Khandelwal-Ld.AR For the Revenue : Ms. Usha Gaikwad Ld. Sr.DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1.1 As per the provisions of Section 68 of the Income Tax Act, 1961, where any sum is found credited in the assessee s books and assessee offers no explanation about the nature and source thereof or the explanation furnished is found to be unsatisfactory, the sum so credited may be charged to Income-Tax as the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atio of said decision has subsequently been followed by various judicial authorities in catena of judicial pronouncements. The said decision has been followed by Hon ble Bombay High Court in the case of CIT Vs. Gagandeep Infrastructure Private Limited [80 Taxmann.com 272] subsequently in CIT Vs. Orchid Industries Private Limited [88 Taxmann.com 502]. The Hon ble Delhi High Court followed the said decision in Pr. CIT V/s Adamine Construction Pvt. Ltd. [107 Taxmann.com 84] against which revenue s Special Leave petition was dismissed by Hon ble Supreme Court which is reported at 107 Taxmann.com 85. Similar is the position of decision of Hon ble Delhi High Court rendered in Pr. CIT V/s Himachal Fibers Ltd. [98 Taxmann.com 72] against which revenue s Special Leave Petition was dismissed by Hon ble Supreme Court which is reported at 98 Taxmann.com 173. Similar is the decision of Hon ble High Court of Madhya Pradesh in Pr. CIT V/s Chain House International Pvt. Ltd. [98 Taxmann.com 47] against which revenue s Special Leave Petition has been dismissed by Hon ble Supreme Court on 18/02/2019 which is reported at 103 Taxmann.com 435. Similar is the recent decision of Hon ble Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h were his witness. It was for the Ld Assessing Officer to produce these parties for cross-examination by the appellant and not the other way around. d. The addition was confirmed on inference raised against the appellant on the basis of mere suspicion, conjectures and surmises and not on any tangible material. e. By overlooking the fact that the excerpts of the statement of Shri Bhanwarlal Jain provided does not find any mention of the appellant or the firm i.e. Regent Diamond from whom alleged bogus unsecured loan was taken. As evident, the assessee is aggrieved by certain additions u/s 68 on account of unsecured loan of ₹ 400 Lacs stated to be taken from an entity namely M/s Regent Diamond allegedly controlled and managed by one Shri Bhanwar Lal Jain 2.2 We have carefully heard the arguments advanced by both the representatives. The Ld. Authorized Representative for Assessee (AR), drawing out attention to the documents as placed in the paper book, assailed the additions as sustained by Ld. first appellate authority. Reliance has been placed on various judicial pronouncements, the copies of which have been placed on record. The same has duly been deliberated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the translations. 3.5 However, rejecting the same, Ld.AO treated the loan as unsecured cash credit and added the same u/s 68. Consequently, interest paid against the same was also reduced from work-in-progress. 4.1 During appellate proceedings, a remand report was called from Ld.AO directing him to provide all the statements recorded from the entity of Shri Bhanwar Lal Jain which was being relied upon for making addition. The Ld. AO was also directed to provide cross-examination of relevant persons. 4.2 It was submitted in the remand report that summons issued to M/s Regent Diamond as well as Shri Bhanwar Lal Jain was returned back by postal authorities and the same were served though affixture. The said party was not available at the given addresses and not accepting the summons intentionally. The assessee also failed to produce the stated party to prove the genuineness of the transactions. Hence, the additions were justified. 4.3 Going by the findings of Ld. AO, the additions were confirmed which has led to assessee s appeal before us. 5. Upon careful consideration of factual matrix as enumerated in the preceding paragraphs, it is quite discernible that the loan w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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