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TMI Blog2014 (5) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to those parties by the assessee and the TDS was deducted. Further the loans were repaid in a subsequent years through City Bank transaction. Under the totality of the facts and circumstances of the case, we therefore uphold the view of learned CIT(A) and dismiss this ground of the Revenue. - ITA No. 3494/Ahd/2010 - - - Dated:- 30-5-2014 - SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEMBER For the Revenue : Shri O.P. Batheja, Sr.D.R. For the Assessee : Shri Vijay Ranjan, A.R. ORDER PER SHRI MUKUL KUMAR SHRAWAT, JUDICIAL MEMBER This is an appeal filed by the Revenue arising from the order of learned CIT(A) and the grounds raised are hereby decided as follows: (1) The Ld. CIT(A) erred in law and on facts in deleting the addition of Rs.15,00,000/- made by the AO on account of unsecured loan u/s.68 of the IT Act without properly appreciating the facts of the case and the material brought on record by the AO. (1.1) The Ld. CIT(A)-XVI, Ahmedabad has erred in law and on facts in stating that the statement relied upon by the AO cannot be made for addition without appreciating that the statement of Shri Ramdinesh Sharma r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Naresh Trading Co. 2,50,000 AENPA9022K 12(4) 5. M.J. International 4,00,000 AECPJ7083A 5(1) 2.2 It was also informed that the loans were taken through account payee cheques. It was also explained that the transaction which was made through banking channel was duly reflected in the books of accounts of the assessee and that all the depositors were existing tax payers. The assessee has also paid interest to those depositors and TDS @ 10.2% has also been deducted. Details of the TDS were furnished. An another fact has also been informed to the AO that the loans were repaid in subsequent years through account payee cheques of the City Bank. The assessee has, therefore, pleaded that the primary onus discharged. 2.3 However the AO was not convinced. The AO has noted that a survey u/s.133A was carried out in the case of one Sri Lalit S. Sharma on 31.08.2009. During the course of survey, it was noted that one Sri Ramdinesh Ranjit Sharma was managing the business affairs and bank accounts of the said parties. It was admitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , a letter is filed in the paper book dated 11.08.2010. Referring the remand report and asking the assessee to attend office on a particular date to cross-examine Sri Ramdinesh Ranjit Sharma. On the basis of these evidences, learned DR has emphasized that the loan entries were bogus entries. Because Sri Sharma has stated during the survey proceedings that he was managing the bank accounts of those persons and providing the accommodation entries to various parties. Learned DR has cited a decision of Hon ble Supreme Court in the case of ITO Vs. M. Pirai Choodi, 334 ITR 262 (SC) for the legal proposition that the High Court should have directed the AO to grant an opportunity to assessee to cross-examine the concerned witnesses instead of setting aside assessment order. He has therefore pleaded that the matter can be restored back so that merely on the basis of the issue of cross-examination the addition in question ought not to have been deleted by learned CIT(A). At this juncture, it is worth to mention that from the side of the respondent-assessee an order of ITAT B Bench Ahmedabad pronounced in the case of Shri Amikumar S. Agarwal Vs. ITO Ahmedabad bearing ITA No.3498/Ahd/2010, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Sharma was recorded who had stated that the accommodation entries were given to the assessee in the form of unsecured loans. Now the question is that whether that statement was sufficient to invoke the provisions of section 68 of IT Act. First of all, we want to mention that in the case of Paul Mathews and Sons (supra), it was made clear that a statement elicited during the survey operation had no evidentiary value. Secondly, we have also noted that there was no cogent reason assigned by the Revenue Department for rejecting several other corroborative evidences which were filed by the assessee to establish the genuineness of the loans. All those evidences were in corroboration of the said loan transactions and furnishing of those evidences were inconfirmity and requirement of the provisions of section 68 of the IT Act. We therefore hold that there was no valid reason for rejecting the evidences of the assessee and placing reliance by the Revenue Department on a statement which was not recorded in connection with any proceedings against this assessee. 6.2. As far as the case laws filed by the Id.DR are concerned, few of them are in respect of the gift taken by the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were initiated on the basis of the statement of Sri Ramdinesh Ranjit Sharma. That statement was recorded consequences upon a survey conducted on Sri Lalit S. Sharma, as discussed by the AO in the appeal in hand. In short, we can conclude that on identical facts and circumstances when a view has been taken in assessee s favour then there is no occasion to depart from that view but to follow the same. Moreover, we have noted that the assessee has duly discharged his primary onus of placing on record the confirmation letters, PAN details, cheque details, bank transactions through which the loans taken. The assessee has informed that those parties were existing tax payers. Importantly, it has also been informed that the interest was paid to those parties by the assessee and the TDS was deducted. Further the loans were repaid in a subsequent years through City Bank transaction. Under the totality of the facts and circumstances of the case, we therefore uphold the view of learned CIT(A) and dismiss this ground of the Revenue. 7. Ground Nos.2, 3 and 4 are consequential in nature pertaining to the disallowance of interest; hence, do not survive in view of the above decision. Hence dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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