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TMI Blog2024 (6) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT agreed with the CIT-Appeals and held that the Respondent has discharged the onus of explaining the transactions - ITAT has also examined another decision of the ITAT in respect of another assessee, which also had a valid loan from Javda India Impex Ltd. and agreed with the findings in that case to hold that the addition to the income had been raised merely on conjecture and surmise. HELD THA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Appellate Tribunal, Mumbai ( ITAT ) which disposed of two separate appeals challenging orders of the Commissioner of Income Tax (Appeals)-20 ( CIT-Appeals ), both dated 4th June, 2015. The relevant assessment years are 2007-08 and 2012-13. 2. The core issue relevant for these proceedings is whether unsecured loans taken at the rate 9% p.a. should be treated as being unexplained and disallowed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, credit-worthiness and all supporting evidence as required under Section 68 of the Income Tax Act, 1961 ( the Act ). 4. The record shows that the disallowance of the unsecured loans of Rs. 40 Lakhs was based on search and seizure action conducted on one Mr. Praveen Kumar Jain during which he is said to have recorded a statement that he had provided accommodation entries to a few beneficiaries, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies, the tax returns filed by those companies and the confirmation of loans given by the Respondent concluded that the disallowance of the loan as being fake ought to be reversed. 7. The ITAT too agreed with the CIT-Appeals. Distinguishing the case law cited by the Department, the ITAT agreed with the CIT-Appeals and held that the Respondent has discharged the onus of explaining the transac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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