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TMI Blog2022 (8) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... ion income from accommodation entries - HELD THAT:- There is no dispute to the fact that the assessee was engaged in providing the accommodation entries and this fact was admitted by the authorities below. Accordingly, the assessee has offered an income on estimated basis for Rs.53,22,075.00 being 0.5% of the total bank deposits in the bank which was also accepted by the revenue - addition was made by the AO on the basis of the admission made by the assessee during the assessment proceedings - assessee in the ground of appeal before us has challenged the impugned addition. To our understanding, the ground raised by the assessee is not sustainable for the reason that the addition was made on the concession of the assessee which is evident from the assessment order - AR has not brought out anything based on the documentary evidence that the income offered during the assessment proceedings was wrong. Accordingly, we do not find any merit in the ground raised by the assessee. Disallowance of bogus loss - As alleged by the authorities below that such loss was set off of against the income derived by the assessee from the sale purchase of property whereas there was no income added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies Limited. The assessee has repay the loan to the tune of Rs.3,02,96,000/- and in the books of account has shown the outstanding loans amounting to Rs. 1,05,05,000/- under the head unsecured loans. The assessee has adjusted the repayment of loan by earlier advance amounting to Rs.1,93,50,000/-given to M/s Ken Securities Limited and made payment amounting to Rs. 50,00,000/- on 17-04-2005, Rs. 55,00,000/- on 22-05-2012and Rs. 4,46,000/- on 04-03-2013 respectively. 5. However, the AO observed that the assessee has not furnished the requisite details to substantiate the loan amount as Identity, Creditworthiness, ITR, confirmation of the lender. The AO also noted that the notice u/s 133(6) of the Act was issued to M/s Ken Securities Limited was returned back with the remark as left . The AO thus in the absence relevant details and documents made the addition of closing balance of Rs. 1,05,05,000/- u/s 68 of the Act to the total income of the assessee. 6. Aggrieved assessee preferred the appeal before the Ld. CIT-A. The assessee before the Ld. CIT-A submits the confirmation of ledger in the books of M/s Ken Securities Limited, accounts M/s Ken Securities Limited in the books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of 2 reasons. Firstly, there was a notice issued under section 133 6 of the Act to M/s Ken Securities Limited which was returned as unserved. Secondly, the company provided loan to the assessee i.e. M/s Ken Securities Limited has declared loss in the income tax return and thus the creditworthiness of the company was not proved. 11. On perusal of the facts of the case on hand, we note that the assessee has filed the confirmation from the party namely M/s Ken Securities Limited about the loan given to the assessee, copy of the income tax return along which are placed on pages 6 to 9 of the paper book. Likewise, the assessee has also filed the copy of the ledger of M/s Ken Securities Limited in its books of accounts containing the financial transactions which was supported by the bank statement. The details are placed on pages 5 and 10-12 of the paper book. No infirmity of whatsoever was pointed out by the authorities below. Furthermore on perusal of the ledger copy in the books of the assessee as well as in the books of the party, we find that the assessee has shown as an advance to such party as opening balance of Rs.1,93,50,000.00 and thereafter the assessee has received a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction was the business transactions between the assessee and the loan parties. We also feel pertinent to refer the judgment of the Hon ble Gujarat high court in case CIT vs. Ayachi Chandrashekhar Narsangji reported in 42 taxmann.com 251 where it was held as under: It is required to note that as such an amount of Rs. 1,00,00,000 vide cheque No. 102110 and an amount of Rs. 60 lakhs vide cheque No. 102111 was given to the assessee and out of the total loan of Rs. 1.60 crores, Rs. 15 lakhs vide cheque no. 196107 was repaid and therefore, an amount of Rs. 1,45,00,000 remained outstanding to be paid to IA. It has also come on record that the said loan amount has been repaid by the assessee to 'IA' in the immediately next year and the Department had accepted the repayment of loan without probing into it. In the aforesaid facts and circumstances of the case, when the Tribunal has held that the matter is not required to be remanded as no other view would be possible, there was no reason to interfere with the impugned order passed by the Tribunal. [Para 6] 14. In this respect we also find support and guidance from the judgment of Hon ble Gujarat High Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant in the books of account has shown purchase of imrnovable property amounting to Rs.2,00,00,000/- and sale on the same date at Rs. 18,00,00,000/-. Appellant has set off the gain by claiming the loss on sale of security of Rs.12,66,98,547/-. Appellant has contended that ail entries including loss on sale of security are only accommodation entry, however, the AO has disallowed the loss while accepting the paper gain of Rs.16,00,000/- shown in the account. Though it has been established that appellant is a paper company, if appellant has claimed bogus loss, AO was perfectly justified to disallow the same. In view of the above, disallowance made by the AO is confirmed. The related grounds of appeal are accordingly dismissed. 21. Being aggrieved by the order of the learned CIT-A, the assessee is in appeal before us. 22. The learned AR before us filed a paper book running from pages 1 to 27 and contended that there was no income determined by the authorities on the sale purchase of property transaction. Accordingly, the question of setting off the losses against such income not arise. 23. On the other hand the learned DR submitted that the assessee was engaged in pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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