9911796707
TMI Blog2021 (4) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... er extracts, we find that there is a running account maintained by the assessee with these creditors and all the transactions are routed through regular banking channels in account payee cheques. One more excruciating fact to be noted here is that the assessee had paid interest on these loans after subjecting the same to due deduction of tax at source. We find that the lower authorities had duly granted deduction for the interest expenditure claimed on these loans by the assessee. Once the interest is accepted to be genuine , then how the principal component thereon could be disbelieved by the lower authorities. We are unable to comprehend and unable to persuade ourselves to accept to this act of the lower authorities. We find that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely succeeding asst year) together with interest. We find that the ld AR before us had tried to produce certain documents connected with DSQ Software and 20th Century Finance Corporation Ltd (which was demerged later as TCFC Finance Ltd) to prove their creditworthiness. In our considered opinion, these documents are not required to be looked into at this stage as we have already held that the assessee had reasonable cause from not proving the creditworthiness of the creditors by producing the necessary documents due to ongoing legal suits and disputes pending with those creditors vis a vis the sister concern of the assessee. Moreover those disputes are money suits and obviously the loan creditors would not come forward to cooperate with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny engaged in the business of shares and stock broking, investment and trading in shares and securities. We find that the assessee is a member of National Stock Exchange. The business income derived by the assessee in the sum of ₹ 1,37,38,650/- was declared in the return of income filed on 10.4.2000. 3.1. We find that this is the second round of proceedings before this tribunal. In the first round, this tribunal in ITA NO. 3717/M/2004 dated 3.10.2007 had remanded the issue to the file of ld CITA for the reason that the loan confirmations that were filed by the assessee before the ld CITA in the paper book were not considered by the ld CITA. Accordingly, this tribunal had directed the ld CITA to verify those confirmations for the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had submitted before him the copy of the submissions made before the tribunal in the first round of proceedings together with the paper book. We find that the ld CITA also records the fact that the paper book filed by the assessee did contain few papers of bank account statement of assessee and ledger extracts in the case of aforesaid 5 parties .We find that the ld CITA once again mentions that the ledger extracts alone have been filed by the assessee and the same would not establish the genuineness of the transaction and creditworthiness of the creditors. 3.3. We find that the ledger extracts given by the assessee before the ld CITA itself contains the counter signature of the creditors duly confirming all the transactions toge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of their financial statements and income tax returns and produce the same before the lower authorities. Given this genuine predicament from the side of the assessee, we find that the assessee had requested the ld AO to issue summons u/s 131 of the Act to those loan creditors to find out the truth, which was not acted upon by the ld AO. We find that the assessee had duly disclosed the identity of the creditors and genuineness of the transactions are very much evident from the ledger extracts itself as all the transactions are routed through regular banking channels and assessee had even paid interest on these loans. Due to existing disputes with the parties by the sister concerns of the assessee, the assessee could not procure the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y documents due to ongoing legal suits and disputes pending with those creditors vis a vis the sister concern of the assessee. Moreover those disputes are money suits and obviously the loan creditors would not come forward to cooperate with the assessee by furnishing their financials. The relevant disputes that are pending in the case of sister concern of the assessee with these loan creditors are enclosed in pages 15 to 18 and 20 to 41 of the paper book filed before us which are already forming part of records of the lower authorities. 3.6. Since these are factual issues, the various case laws relied upon by the ld AR at the time of hearing need not be gone into as the relief is hereby granted to the assessee on first principle basis it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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