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TMI Blog2021 (10) TMI 1436X X X X Extracts X X X X X X X X Extracts X X X X ..... paid in the immediately succeeding assessment year. The assessee has filed confirmation from M/s. Fastline Multitrade Pvt Ltd. admitting the genuineness of aforesaid loan transaction. A perusal of the aforesaid communication further reveals that the statement made by Shri P.K.Jain during the course of search was subsequently retracted. It is an undisputed fact that the assessee had repaid the loan amount. It is not the case of Revenue that the assessee after having accepted loan has never repaid the loan. Taking into consideration entirety of facts, find no reason to sustain the addition. Once the assessee has repaid loan amount the addition is not sustainable. Consequently, the impugned order is quashed and appeal by the assessee is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case laws relied by me in the abovementioned appeal filed by the assessee. In this case, loan from one company M/s Fastline Trading Pvt. Ltd. was added u/s 68 by the assessing officer, on the ground that this company is a shell company and not involved in any genuine business activity but engaged in providing accommodation entry in form of loans, share capital and bogus purchases. This company was floated by Praveen Kumar Jain, who in the sworn statement u/s 132(4) has admitted before the department that all the 70 concerns are shell entities and are not doing any business. All the directors of these companies were found to be the the dummy directors and also admitted before the department that they use to sign the documents for nominal con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anking channel is not sacrosanct and it would not make an otherwise non-genuine transaction genuine. The bank account staement of M/s Fastline Traders Pvt. Ltd., it was observed that the Rs. 20 lakhs came from Atharva Business Pvt. Ltd (It is also PKJ group of company) and on the same day on 16/01/2012 , it is given to assessee. The whole modus operandi of M/s Fastline Trade Pvt. Ltd. Is that they issued cheques after accepting cash from the party and take back the loan by cheque by paying cash to the said party. This cash is siphoned off to the various companies of their group. Assessee has paid interest to all other lender except this co. M/s Fastline Trades Pvt. Ltd., even though the loan amount was used for 15 months. Also, once the cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness activity and is only providing accommodation entries. The Assessing Officer has further suspected the transaction to be bogus as on the loan amount no interest was paid by the assessee on repayment of loan. 5. The assessee has furnished bank statement indicating that the loan was taken by the assessee from M/s. Fastline Multitrade Pvt Ltd. through banking channel on 16/01/2012 i.e. during the period relevant to the assessment year under appeal. The said loan was repaid by the assessee through cheque and the amount was debited from the account of assessee on 26/03/2013 i.e. loan was repaid in the immediately succeeding assessment year. The assessee has filed confirmation from M/s. Fastline Multitrade Pvt Ltd. admitting the genuineness ..... X X X X Extracts X X X X X X X X Extracts X X X X
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