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TMI Blog2022 (1) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... 81 - ITAT MUMBAI] and Blue Stock Investment Pvt. Ltd. [ 2018 (10) TMI 1633 - ITAT MUMBAI] has held that the sufficient evidences have been given by the assessee qua the money raised , the no the addition towards the loan/share application money could be made - Decided in favour of assessee. - I.T.A. No. 398/Mum/2020 - - - Dated:- 18-11-2021 - Shri Rajesh Kumar, AM And Shri Amarjit Singh, JM For the Assessee : Ms. Pramita Rathi For the Revenue : Shri Vijay Kumar Soni (DR) ORDER PER AMARJIT SINGH, JM: The assessee has filed the present appeal against the order dated 15.11.2019 passed by the Commissioner of Income Tax (Appeals)-17, Mumbai [hereinafter referred to as the CIT(A) ] relevant to the A.Y. 2008-09. 2. The assessee has raised the following grounds: - 1. On the facts and circumstances of the case and in law, the Hon ble Commissioner of Income Tax (Appeals) (CIT(A)) has erred in upholding the reopening of assessment done by the learned Assessing Officer ( AO ) u/s 147 of the Act. 2. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the addition of ₹ 45,00,000/- 68 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed its e-return of income in response to notice u/s 148 of the Act on 22.08.2015. Thereafter statutory notices were duly issued and served upon the assessee. Besides the assessee also received the unsecured loans as per details below: Sr. No. Name of the account holder Date of entry Bank Account Number Amount 1 Topcare Trading Co. Pvt. Ltd. 1.11.2007 02321300000134 in DCB nariman point branch 41,34,000 2 New Tree Mercantile Pvt. Ltd 31.07.2007 02321300000198 in DCB nariman point baranch 55,00,000 3 New Tree Mercantile Pvt. Ltd. 24.10.2007 02321300000198 in DCB nariman point branch 20,00,000 4 New Tree Mercantile Pvt. Ltd 31.07.2007 02321300000198 in DCB nariman point branch 25,00,000 Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was made on the basis of the statement of Mr. Praveen Kumar Jain but Praveen Kumar Jain had retracted from his statement. Therefore addition can not be made on the basis of statement with has been retracted. The Hon ble ITAT in the case of Diwali Capital Finance Private Ltd. Vs. DCIT (ITA. No.2091/Mum/2018 dated 10 January, 2019 (ITAT Mumbai) DCIT Vs. Blue Stock Investment Pvt. Ltd. (ITA. No.3987/Mum/2017 dated 10 January, 2019) has held that the transactions as genuine under similar facts and circumstances. The relevant finding is hereby reproduced as under:- 8. Coming to assessee s appeal in ITA No. 2090/Mum/2018 for AY 2008-09, the issue is against the order of CIT(A) confirming the action of the AO in making addition of share application money of ₹ 1,62,50,000/- and consequently addition of adhoc expenditure on account of commission paid to obtain these bogus capital at the rate of 5% i.e. ₹ 28,12,500/-. For this assessee has raised the following two grounds: - 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in confirming the action of Ld. A. 0. in making addition of ₹ 1,62,50,000/- on account of Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75,00,000 25,000 Total 4,00,00,000 1,62,50,000 5,62,50,000 187,500 10. We find that exactly identical issue has been dealt with by us in the group cases in the case of Diwali Capital Finance Pvt. Ltd. vs. DCIT in ITA No. 2091/Mum/2018 for AY 2008-09 wherein, we have held as under: - 11. We have heard rival contentions and gone through the facts and circumstances of the case. We find from the facts of the case that during the assessment proceedings, the assessee has submitted the following details: - During assessment proceedings the assessee had submitted copy of income tax return along with audit report of share applicants i.e. investing companies. Copy of form no.2 of Diwali Capital Finance Pvt. Ltd. Copies of bank accounts of the assessee which inter alia depicts the credit entries by way of transfer of the amounts given to the assessee company by cheque. Confirmation of the investing company has also been filed. Further during the course of assessment proceeding the assessee al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts being identical, we delete the addition and allow this appeal of assessee. 6. Considering the facts and circumstances of the case and the issue being covered by the decision of the Hon ble ITAT in ITA. No.3987/Mum/2017 dated 10.01.2019, we set aside the order of ld CIT(A) on this issue and direct the AO to delete the addition. The ground no. 1 is allowed. ISSUE NO.3 4 7. Issue no.3 4 is against the confirmation by CIT(A) of addition of ₹ 1,41,34,000/- as made by the AO towards non genuine loans u/s 68 of the Act. These loans were taken from taken from M/s. Topcare Trading Co. Pvt. Ltd. Rs, 41,34,000/- and ₹ 1,00,00,000/- from M/s. New Tree Mercantile Co. Pvt. Ltd. The Ld. Representative of the assessee has argued that the assessee has given the all documents/evidences which sufficiently proved the creditworthiness and genuineness of the loan and are on record. The ld AR also argued that reliance on the statement of Mr. Praveen Kumar Jain s retracted statement is wrong and against the provisions of the law unless some substantive evidences are brought on records by the revenue. Therefore, the addition is not justified. However, on the oth ..... 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