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TMI Blog2023 (6) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... here, the documents evidencing the impugned transactions have been submitted before the lower authorities, which fact has not been analysed by the lower authorities and that nothing has been brought on record by the Revenue to controvert the contentions of the assessee. When the assessee is found to be the owner of money bullion etc., that is not recorded in books and that the assessee offers no explanation about the nature and source then the said money bullion etc., may be deemed to be the income of the assessee u/s.69A. In the case under consideration we notice that the assessee has recorded the impugned transactions in the books of accounts and has also provided explanations/evidences explaining the source of the loan transaction. Given this and considering other facts and evidences we are of the considered view that the AO is not correct in treating the loan transaction as an income u/s.69A - Appeal is allowed in favour of the assessee. - I.T.A. No.727/Mum/2023 - - - Dated:- 30-5-2023 - Pavan Kumar Gadale (Judicial Member) And Ms. Padmavathy S. (Accountant Member) For the Assessee : Shri Shashank Mehta For the Department : Shri Anil Gupta ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 which was duly served on the assessee. The reasons recorded by the Assessing Officer for reopening is extracted as below:- A search/survey act/on under sect/on 132/133A of the Income Tax Act, 1961 was carried out on 2$h June, 2015 in the case of Ahuja Group and their associated concerns at their offices branches, side offices, and key offices of the subsidiaries and associate concerns and residences of M/s Ahuja Group in Mumbai, During the search action the unaccounted parallel books of the Ahuja Group reveals cash transactions of unaccounted money in respect of purchases, sales, loan transactions, accommodation entries, expenses inflation etc wherein the key persons of the group and large numbers of other parties admitted into entering such transactions by the Ahuja Group, Accordingly, the transactions in respect of Shri Arun Keswani maintained in the unaccounted parallel hooks in tally accounting software/package maintained by Directors and Promoters by M/s Ahuja Group reveals accommodation entry transaction and cash transaction as under:- Date Dr/Cr Particulars Narration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come. 4. Aggrieved, the assessee filed further appeal before the CIT(A) where similar submissions were made by the assessee. The CIT(A) rejected the submissions of the assessee by stating that during the search proceedings, the statements of Shri Jagdish Ahuj and Shri Sunil Choudhary was recorded on oath where they have confirmed that they were providing accommodation entries and that during the year under consideration, the assessee has returned loan back by issuing cheque and has received cash in return. Aggrieved, the assessee is in appeal before the Tribunal. 5. During the course of hearing, the Ld.AR submitted that the assessment for the year under consideration was reopened based on the search conducted in Ahuja group where there was an alleged cash transaction towards this loan amount with the assessee. However, there was nothing brought on record by the Revenue to this effect. The Ld.AR further submitted that he assessee had submitted all the relevant documentary evidences with regard to the impugned loan transactions, which have not been considered by the lower authorities. The Ld.AR also submitted that the issue is covered by the decision of the co-ordinate bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded to the Assessing Officer for a fresh verification. 8. We heard the parties and perused the materials on record. The reason for reopening as has been extracted in the earlier part of this order is that during the search conducted in Ahuja group, there were unaccounted cash transactions and accommodation entries and the loan transaction of the assessee is one such accommodation entry. We notice that the Assessing Officer, in the order of assessment had extracted certain portions of the statement recorded from Shri Jagdish B Ahuja, where he had confirmed maintenance of parallel books of account and giving the accommodation entries. However we do not find any specific finding from the statement recorded which the Assessing Officer has linked the impugned loan transaction with the statement recorded. We also notice that while making the addition under section 69A, the Assessing Officer has emphatically concluded that during the year, assessee has returned the loan and has received cash against the same without bringing any concrete evidence except the modus operandi of the transaction as has been explained in the statement given by Shri Jagdish Ahuja. It is also noticed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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