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TMI Blog2022 (9) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... out holding the assessee to be an accommodation entry provider. Thus, to end the dispute and without setting any precedence for the alleged transactions, we estimate income of the assessee @ 3% of the total loans advanced i.e., 3% of Rs.1,00,00,000/- which comes to Rs.3,00,000/- and direct the Assessing Officer to sustain the said addition and the remaining addition of Rs.97,00,000/- stands deleted - Appeal of assessee partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... led out from the records are that the assessee is a Private Limited Company engaged in the business of investment in shares and loan financing. The assessee e-filed its return of income on 23/09/2014, declaring total income of Rs.3,401/- for the Assessment Year 2014-15. Case selected for scrutiny through CASS followed by service of notice u/s 143(2) & 142 (1) of the Act. During the course of assessment proceedings, the ld. Assessing Officer examined the bank statement of the assessee and noticed that loan totaling to Rs.90,00,000/- was received from M/s. Yogmaya Distributors Pvt. Ltd. on three different occasion and loan of Rs.10,00,000/- received from M/s. Vilasini Sales Pvt. Ltd. and the total sum of Rs.1,00,00,000/- was given as short te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of addition u/s 68 of the Act and came to a conclusion that the assessee failed to prove the identity and creditworthiness of the cash creditors and genuineness of the transactions and thus, confirmed the action of the Assessing Officer. 5. Further aggrieved, the assessee is now in appeal before this Tribunal raising various grounds. But the sole grievance of the assessee is that the ld. CIT(A) has erred in confirming the addition of Rs.1,00,00,000/- made by the Assessing Officer u/s 68 of the Act. 6. The ld. Counsel for the assessee apart from reiterating the submissions made before the lower authorities, further stated that the loans in question were taken through proper banking channels. Loan confirmations were received and place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by supporting the orders of the lower authorities and stated that the assessee failed to prove the genuineness of the transactions and creditworthiness of the cash creditors. 8. We have heard rival contentions and perused the records placed before us as well as the case laws cited by ld. Counsel for the assessee. 9. The sole grievance of the assesse is that the ld. CIT(A) erred in confirming the addition of Rs.1,00,00,000/- made by the Assessing Officer u/s 68 of the Act as unexplained cash credit. From perusal of the bank statement placed in the paper book, we find that the amount of Rs.1,00,00,000/- was received by the assessee as per the following schedule:- Date Name Amount [in Rs.] 06.08.2013 Yogmaya Distributors Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee filed reply as under:- "This is in reference to your letter dated 22th November, 2016, in this regard we would like to take some time to collect the said documents from the concerned party M/s. Yogmaya Distributers Pvt Ltd and M/s. Vilasani Sales Pvt. Ltd. Hope we will be able to provide explanation with supporting documents which would be self-explanatory towards the transactions." Thereafter, in absence of any further compliance by the assessee, the Assessing Officer proceeded to frame the assessment order u/s 143(3) of the Act, dt. 19/12/2016, making the addition u/s 68 of the Act. 10. We observe that before the lower authorities, the assessee has provided the addresses of the alleged cash creditors, copies of ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of similar amounts of debit and credit and usually there are voluminous transactions in the bank statements of so called accommodation entry providers. However, on perusal of the bank statements of the assessee we notice that from 01/04/2013 to 08/04/013, there are hardly seven to eight transactions and the assessee has provided necessary details to explain all the alleged cash creditors as well as the persons to whom amounts have been advanced. It clearly seems to be the case of taking interest free unsecured loan and giving it as interest free loan to some other concern for short term. 12. Though the issue before us relates to unexplained cash credit, however, looking at the overall circumstances of the case, the details filed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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