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TMI Blog2023 (6) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... nding loan to assessee has been held to be a genuine party. Its identity, genuineness and creditworthiness were established. When party as found to be a genuine lender, the entire basis for proceedings against the assessee would vanish. Revenue was not justified in proceeding against the assessee on the ground that the loan taken from the said party was unexplained credit and that the lender was not genuine. Since the factual foundation for reopening the assessment of the respondent-assessee is absent, the action taken by the appellant-Revenue against the respondent-assessee cannot be endorsed to. Decided in favour of assessee. - R/TAX APPEAL NO. 629 OF 2022 - - - Dated:- 7-3-2023 - HONOURABLE MR. JUSTICE N.V.ANJARIA AND HONOURABL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961 (hereinafter referred to as the Act ) the genuineness of the loan was accepted. The assessee also furnished copy of the affidavit from the Director of M/s. Basant Marketing Private Ltd.. 3.2 The Assessing Officer found that the assessee had failed to file any document or supporting evidence and proof of identity and genuineness of the transactions as well as the proof of creditworthiness of the lenders. It was observed by the Assessing Officer that it was found in course of the search conducted against one Arun Dalmia and Others at Mumbai that they were engaged in the money laundering. for which they had created 20 companies, one of which was M/s. Basant Marketing Private Ltd.. 3.3 The Assessing Officer held that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Basant Marketing P. Ltd., for AY 2010-11, the CIT(A)-20, Kolkata has given the findings as mentioned below vide order dated 30-01-2015. Para-15 of the CIT (A) order is reproduced below: I have considered the rival submissions and perused the material placed on record, I have already discussed at length the various aspects of the factual and legal position in the present appeal. In view of such discussions, I am of the opinion that there is no material on record to back the finding of the AO that the assessee company was involved in providing accommodation entry, I am unable to accept the finding of the AO that the documents which were maintained by the assessee company in the normal course of its business and which were being present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of lender party M/s Basant Marketing for assessment year 2010-11 the learned CIT(A)-20 Kolkata held the said party as genuine company. We also find that in case of ITO vs. The Surat Safe Deposit Vault Pvt. Ltd bearing ITA No. 1791/Ahd/2017 corresponding to A.Y. 2007-08, where the assessee (The Surat Safe Deposit Vault Pvt) has also taken loan from M/s Basant Marketing P. Ltd held as genuine by the coordinate bench of this tribunal. The relevant finding of the bench reads as under: 6. We have heard both the parties and gone through the impugned order. The assessee has furnished copy of audited accounts, balance sheet and P L account along with annexure, copy of ledger of Basant Marketing P. Ltd. And during the course of assessment proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. Its identity, genuineness and creditworthiness were established. When M/s. Basant Marketing Private Ltd. was found to be a genuine lender, the entire basis for proceedings against the assessee would vanish. The Revenue was not justified in proceeding against the assessee on the ground that the loan taken from the said M/s. Basant Marketing Private Ltd. was unexplained credit and that the lender was not genuine. 6. Since the factual foundation for reopening the assessment of the respondent-assessee is absent, the action taken by the appellant-Revenue against the respondent-assessee cannot be endorsed to. This court is in complete agreement with the findings of the Appellate Authority and the Tribunal. 6.1 No question of law, much l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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