9911796707
TMI Blog2022 (9) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... to show that plea of the assessee, as raised was denied by the Revenue. As a result, grounds No. 1 and 6, raised in assessee‟s appeal, are dismissed. - ITA No.3992/Mum./2019 - - - Dated:- 15-9-2022 - Shri Om Prakash Kant, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Aditya Ramchandran For the Revenue : Smt. Smita Nair ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 15/03/2019, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by learned Commissioner of Income Tax (Appeals) 40, Mumbai, [ learned CIT(A) ], for the assessment year 2013 14. 2. In its appeal, the assessee has raised following grounds: 1. The Ld CIT(A) has erred in confirming addition made by Ld A.O of Rs.2500000/- u/s 68 of Income Tax Act 1961 by treating genuine unsecured loans as accommodation entry/unexplained cash credit. 2. On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in confirming additions made by AO and stating that the Appellant has indulged in bogus transaction and the Appellant could not es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised in appeal are dismissed as not pressed. 4. The only grievance of the assessee in the present appeal is against addition of Rs. 25,00,000, made under section 68 of the Act. 5. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is a partnership firm and is engaged in the business of trading in shares, bonds, securities, debentures, units and mutual funds. For the year under consideration, assessee e-filed its return of income on 27/09/2013, declaring loss of Rs. 3,87,008. Information was received from DDIT (Investigation), Mumbai that during the year under reference, the assessee had been the beneficiary of accommodation entries to the tune of Rs. 25,00,000, through Bhanwarlal Jain group of cases. As per the aforesaid information, during the course of search action in the case of Bhawarlal Jain group, it has been established that Shri Bhanwarlal Jain along with his sons are operating and managing 70 benami concerns in the names of their employees through which they provided accommodation entries of unsecured loans and bogus purchases to various beneficiaries. The assessee has been identified as one of the beneficiaries of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted before the authorities of investigation wing of Income-tax department about their modus operandi of providing accommodation entry on commission basis. During the period relevant to the assessment under consideration, the assessee has engaged in financial transactions of Rs 25,00,00/- duly supported by ledger account, copy of bank statement, etc. The said financial transaction been taken from one M/s. Navkar diamonds, one of the concerns controlled, managed and operated by Shri Bhanwarlal Jain. During the course of assessment proceedings, assessee has furnished written as well as oral submission in support of his claim of genuineness of alleged transactions. The said submission has been perused and given due consideration in the light of the facts that the above mentioned alleged party has given statement duly recorded on oath that they have not been engaged in the business of actual exchange/ delivery of goods with any of alleged transacting party. 4.4 The primary onus is on the assessee to establish the genuineness of the purchases/ transactions lined by it. In terms of provisions of section 101, 102 and 106 of the Evidence Act, the onus lies in the assessee to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the loan and interest was repaid to the aforesaid entity. The learned AR also referred to the bank statement of M/s. Navkar Diamonds, in this regard. The learned AR further relied upon the affidavit from sole proprietor of M/s Navkar Diamonds, confirming the transaction. 8. On the other hand, learned Departmental Representative ( learned DR ) by vehemently relying upon the orders passed by the lower authorities submitted that details as sought by the Assessing Officer under section 133(6) were not furnished by M/s Navkar Diamonds. 9. We have considered the rival submissions and perused the material available on record. In the present case, the reassessment proceedings were initiated under section 147 of the Act on the basis of information received from investigation wing regarding the beneficiaries of accommodation entries provided by companies managed and controlled by Bhanwarlal Jain group. As per the information, the assessee was identified as one of the beneficiaries of the accommodation entries provided by one such entity. In order to verify the identity, creditworthiness and genuineness of the transaction, the Assessing Officer issued notice under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed loan transaction, inter-alia, with M/s Navkar Diamonds, was deleted. From the perusal of the aforesaid decision, we find that there is no allegation of absence of the party in response to notice issued under section 133(6) of the Act. We further find that there is also no allegation in the aforesaid decision that various details, as noted by the Assessing Officer in paragraph 4.3 of its order in the present case, were not furnished either by M/s Navkar Diamonds, or by the taxpayer. Therefore, we are of the considered view that aforesaid decision is distinguishable on facts. Further, reliance was placed on another decision of coordinate bench of the Tribunal in ITO vs Smt. Manjula B Hedpara, in ITA No. 4669/Mum/2017, wherein, the coordinate bench, vide order dated 17/05/2018, held that by not examining the lender and not issuing any notice whatsoever to the lender the Assessing Officer has committed fatal error. However, we find that in the present case the Assessing Officer has made independent enquiry by issuing notice under section 133(6) of the Act to the lender i.e. M/s Navkar Diamonds, and when the details, as sought from the aforesaid entity, were not received, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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