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TMI Blog2021 (5) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... s the directors of the lending companies had filed affidavits confirming the loan transactions before the ld AO which had not been disputed. Once the averments made in the affidavit are not disputed or refuted, the same are to be construed as true and correct, as held by the Hon ble Supreme Court in the case of Mehta Parikh Co. [ 1956 (5) TMI 4 - SUPREME COURT] . We find no infirmity in the order of the ld CIT-A deleting the addition made towards unsecured loans u/s 68 of the Act and correspondingly allowing interest on such unsecured loans by duly appreciating the facts and evidences on record. Grounds raised by the revenue are dismissed. - ITA No. 421/Mum/2018 - - - Dated:- 9-4-2021 - Shri M. Balaganesh, AM And Shri Pavan Kumar Gadale, JM For the Assessee : Shri Sanjay R. Parikh (AR) For the Revenue : Shri Gurbinder Singh (DR) ORDER PER M. BALAGANESH, AM: 1. This appeal of the revenue arises out of the order of the Learned Commissioner of Income Tax (Appeals) -37, Mumbai [hereinafter referred to as the ld CITA] in Appeal No. CIT(A)-37/IT-663/ACIT-25(2)/16-17 dated 8.11.2017 against the order passed by the Learned Joint Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- Sumukh Commercial Pvt Ltd - ₹ 71,00,000/- ---------------------- ₹ 2,86,00,000/- 3.1. We find that the ld AO observed in his order that information was received from office of DGIT (Inv.) Mumbai vide letter dated 7.7.2014 wherein it was informed that Shri Pravin Kumar Jain was searched by the Investigation wing , Mumbai and during the course of search operation, it was found that Shri Pravin Kumar Jain was an entry operator engaged into the practice of providing bogus accommodation entries and that the assessee had received bogus loans from parties controlled by Shri Pravin Kumar Jain. Thereafter, the ld AO issued notices u/s 133(6) of the Act to the aforesaid parties to verify the identity and creditworthiness of the loan creditors and genuineness of the transactions. These notices were sent to the addresses (including new addresses) provided by the assessee. We find that the ld AO observed that out of 7 parties above, 3 parties i.e Casper Enterprise Pvt Ltd (₹ 10 lacs), Duke Business Pvt Ltd (₹ 20 lacs) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the company. It was also mentioned that they confirmed that statement given to income tax authorities on behalf of their company was retracted vide affidavit dated 15.5.2014 and hence the statement is null and void and as have never been made. We find that the ld AO also observed in para 6.30 of his order that Shri Praveen Kumar Jain and his associates had also filed individual affidavits on 15.5.2014 in the CBDT duly retracting their earlier statements given u/s 132(4) of the Act during the course of search proceedings. We find that the ld AO disregarded these retraction statements and affidavits by stating that the same had already been disposed off by the Investigation Wing, Mumbai by countering with para wise comments and hence reliance on the same would not hold any water for the assessee. It was submitted by the assessee that all the above parties are private limited companies and their proof of identity can easily be established through government website of Ministry of Corporate Affairs and accordingly pleaded that all the transactions with the aforesaid parties were genuine and no addition u/s 68 of the Act need to be made thereon. We find that the ld. AO observed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecured loans and correspondingly allowed deduction for interest on such unsecured loans in the sum of ₹ 2,80,828/-. 5. At the outset, we find that the assessee had borrowed loans from 7 parties as detailed above during the Asst Year 2013-14. Out of these borrowings, we find that the assessee had duly repaid the loans within the Asst Year 2013-14 in respect of following parties :- 30.8.2012 Repayment to Nakshatra Business Pvt Ltd ₹ 40 lacs 30.8.2012 Repayment to Olive Overseas Pvt Ltd ₹ 45 lacs 30.8.2012 Repayment to Casper Enterprises Pvt Ltd ₹ 10 lacs 30.8.2012 Repayment to Duke Business Pvt Ltd ₹ 20 lacs Similarly, the loans were repaid by the assessee firm to remaining three parties in Asst Year 2014-15 as under:- 31.12.2013 Repayment to Josh Trading Pvt Ltd ₹ 16.50 lacs 31.12.2013 Repayment to Josh Trading Pvt Ltd ₹ 16.50 lacs 01.01.2014 Repayment to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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