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TMI Blog2023 (7) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... as brushed aside all the relevant materials filed before him and relied merely on the statement recorded during survey u/s 133A as well as for non-production of lender party in order to fasten the addition u/s 68 of the Act. It is noted that statement given by Shri Sanjay Choudhary has been retracted on 07.12.2013 which facts is discernible from affidavit found placed wherein he asserted that he was retracting the statement given to survey team on 03.10.2013 u/s 133A of the Act [i.e. within four (4) day]. From a perusal of the contents of the affidavit reveals that he (Shri Sanjay Choudhary) has alleged coercion on the part of the survey team to give statement as dictated by them, and that he was forced to sign on pages wherein statements w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi dated 24.03.2023 for AY. 2013-14. 2. The only grievance of the assessee against the action of the Ld. CIT(A) confirming the addition of Rs. 50 Lakhs on account of alleged bogus loan received by the assessee. 3. Brief facts, as noted by the AO is that the assessee had filed return of income declaring total income at Rs. nil. Later, the return was selected for scrutiny under CASS. The AO noted that he received information from the DGIT(Inv.), Mumbai that Shri Rajendra Jain, Shri Sanjay Choudhary, Shri Dharmichand Jain [alleged entry operators] and their group entities are providing accommodation entries inter-alia in the nature of unsecured loans and that assessee is also a bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Impex Pvt Ltd found placed at page no. 27 of PB which shows that on 28.03.2013 through bank transaction an amount of Rs. 50 Lakhs has been transferred to the assessee (M/s. Sankpal Developers). The assessee in order to prove the identity of the lender has filed the company master data of M/s. Nazar Impex Pvt Ltd downloaded from Registrar of Company website (refer page 32 PB) which shows that M/s. Nazar Impex Pvt Ltd had Registration No. 164655 which was shown to be functioning from the address given therein; and that two director of this entity are Shri Sanjay Choudhary and Shri Hiralal Parasmal Nahar who are directors from inception of incorporation of M/s. Nazar from 16.09.2006 onwards; and that last AGM was held 30.09.2022; and had fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention drew our attention to the profit and loss statement of the lender [M/s. Nazar] which shows turn over to the tune of Rs. 125,14,54,103/- (Rs.125 crores). And according to him, due to foreign exchange fluctuation, there was loss to the tune of Rs.1,60,91,548/- (refer page no. 13 PB) because of which lenders profit got reduced. He also drew our attention to the page no. 21 of PB wherein the cash and bank balances of M/s. Nazar Impex Pvt Ltd is reflected which shows that it had cash and bank balance of Rs.2,05,66,388/- [more than Rs two crores] and the fact that it has given loan and advances to the tune of Rs. 11,53,44,123/- as on 31.03.2013. And it was pointed out that loans advances given by the lender company as on 31.03.2012 was to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on the part of the survey team to give statement as dictated by them, and that he was forced to sign on pages wherein statements were recorded without reading out the contents of writing (statement). It is noted that the basis for adverse inference against the assessee (statement recorded by survey team) has been retracted. It is trite law that survey statement cannot be the sole basis for drawing adverse inference against the assessee as held in the case of Khader Khan Vs. CIT (352 ITR 480) (SC) wherein it was held by the Hon ble Apex Court that section 133A of the Act does not empower any income-tax authorities to examine any person on oath, hence any such statement does not have any evidentiary value and any admission made during surve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Veedhata Towers (P.) Ltd. [2018] 403 ITR 415 (Bom), this court has held that assessee is only required to explain the source of the credit. There is no requirement under the law to explain the source of the source. In the instant case, there is no dispute as to the identity of the creditor. There is also no dispute about the genuineness of the transaction. That apart, the creditor has explained as to how the credit was given to the assessee. Thus assessee had discharged the onus which was on him as per the requirement of section 68 of the Act. What the Assessing Officer held was that sources of the source were suspect i.e., he suspected the two sources Shri Rajendra Bahadur Singh and Smt. Sarojini Thakur of the source Smt. Savitri Thakur. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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