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TMI Blog2019 (6) TMI 1690X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the AO who just relying on the statement of Shri Pravin Kumar Jain treated the loan transactions as unexplained credit in the books of the assessee. On the issue that these lenders are showing low income or losses in the return of income filed, we observe that in the balance sheets the said loan advanced by the lender were duly reflected and thus there is no income in the particular year has no relevance and there were sufficient sources. Under these circumstances, we, after taking into consideration contentions m, submissions and written submissions of both the parties and after analyzing the various case laws relied upon by the rival parties , are of the view that order passed by the Ld. CIT(A) is well reasoned and there is no reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 15 lacs from Ryan International. The said fact came to light when the investigation wing conducted a search on Pravin Kumar Jain Associates. The AO in order to verify the genuineness of the loans raised from these parties issued notice u/s. 133(6) of the Act. However, all the notices were returned un-served except in the case of Jasoda Export. The AO treated these loans as bogus and added the same to the income of the assessee by framing assessee u/s. 143(3) r.w.s. 147 of the Act. 4. In the appellate proceedings, the learned CIT(A) allowed the appeal of the assessee by holding that assessee has submitted sufficient documents to prove the genuineness of the loan transactions and, thus, deleted the addition. 5. At the outset, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld. A.R. and the Ld. D.R. along with various case laws referred and relied by both the parties. The undisputed facts are that the assessee company was formed and constituted on 15.09.2010 and it has taken over business of M/s. D.N.H Spinners a partnership firm on going concern basis. There was a survey action under section 133A of the Act on the assessee on 25.03.2014. During the course of survey a statement under section 131 of the Act was recorded of Shri Dinesh Jain on 26.03.2014 who is director of the assessee company wherein the survey team informed him that various unsecured loans taken by the assessee from seven entities controlled by Shri Pravin Kumar Jain who has admitted before the Investigation wing in the course of search ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reditworthiness of the lenders and genuineness of the transactions is without any basis as stated above. The assessee filed the necessary evidences in the form of loan confirmations, balance sheets and profit and loss accounts, ITRs, bank statements and PAN cards of the lenders. The lenders companies were filing their ITR and ROC returns regularly and have duly shown the amount lent to the assessee in their respective balance sheets. Entire transactions were routed through the banking channels and thus the assessee has discharged the primary onus of proving the identity, creditworthiness and genuineness of the transactions. Another allegation of the AO is that assessee has failed to produce the parties and hence question of providing cross ..... X X X X Extracts X X X X X X X X Extracts X X X X
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