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TMI Blog2024 (12) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... live link/proximate nexus of alleged dubious transactions between searched person and assessee had been brought on record, said addition was to be deleted. Decided against revenue. - Dr. Brr Kumar, Vice President And Shri T.R. Senthil Kumar, Judicial Member For the Revenue : Shri Rignesh Das, Sr.D.R. For the Assessee : Shri Gaurav Nahta, A.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Revenue as against the appellate order dated 15.07.2024 passed by the Commissioner of Income Tax (Appeals)-11, Ahmedabad arising out of the reassessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) relating to the Assessment Year 2017-18. 2. Brief facts are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017-18 to the lender party. It is also important to mention here that the appellant has also deducted TDS on interest paid to the lender party. Thus, it is observed that the appellant has taken the unsecured loan and repaid the said amount with Interest after deducting TDS on it. It is relevant to reproduce the copy of ledger account and copy of relevant page of bank statement. 5.6 It is also worthwhile to mention here that a search/survey action in the case of Banka Group was conducted on 21.05.2018. However, the appellant had already made repayment of unsecured loan along with interest by deducting TDS before the date of search. Therefore, it cannot be said that the appellant is one of the beneficiaries who had taken accommodation entri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opening balance of Rs. 47,00,000/- and during the year, the appellant had received Rs. 95,00,000/- and paid Rs. 1,42,00,000/- squaring up the account at last. The appellant submitted the requisite documents to prove identity, capacity of creditors to advance money and genuineness of the transaction The appellant has also relied on similar case law which was relied upon in ground of appeal no. 3 (supra). The appellant has stated that it had received unsecured loan of Rs. 95,00,000/- during the year under consideration i.e. A.Y.2017-18 and also made repayment of the said unsecured loan along with interest after deducting TDS in the same assessment year. On perusal of bank statement, it is seen that the said unsecured loan was received thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It is observed from assessment order that interest paid by the appellant of Rs. 5,46,275/- on loan amount of Rs. 1,18,00,000/- taken from M/s Aastha Commotrade Pvt. Ltd. and M/s Gainwell Mercantile Pvt Ltd was disallowed. The appellant submitted that it had repaid the loan along with interest. 8.2 Since the addition in respect of unsecured loan of Rs. 1,18,00,000/-deleted. in view of findings mentioned in para no 7 of this order, the addition made in respect of corresponding interest of Rs. 5,46,275/- on unsecured loan of Rs. 1,18,00,000/- also stands deleted. Thus, the ground of appeal no. 6 is allowed. 5. Aggrieved against the appellate order, Revenue is in appeal before us raising the following Grounds of Appeal: 1) In the facts and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on the circumstances of the case and in law, the ld. CIT(A) has ignored the facts of the case that Aashta Commtrade Pvt Ltd. Gainwell Mercantiles Put Ltd was not enquired in the real business and do not have creditworthiness to lend such huge amount in Assessee Company 7) In the facts and on the circumstances of the case and in law, the ld. CIT(A) has erred in deleting the addition of Rs. 5,46,275/- u/s 37 of the Income Tax Act being interest credited to paper company for unsecured loan of Rs. 1,18,00,000/ taken from Aashta Commtrade Pvt. Ltd amounting to Rs. 23,00,000/- and Gainwell Mercantiles Put Ltd amounting to Rs. 95,00,000/-. 8) The Revenue craves leave to add/alter/armed and/or substitute any or all of the grounds of appeal 6. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows: Where Assessing Officer initiated reassessment on basis of Information that search in case of Venus Group showed that amount of Rs. 4 crores had been received by assessee from Builders of Venus Group through banking channel against corresponding payment of unaccounted cash by assessee to Builders, and considered this as accommodation entry and made addition under section 68, since no live link/proximate nexus of alleged dubious transactions between searched person and assessee had been brought on record, said addition was to be deleted. 9. Respectfully following the above judicial precedents, we have no hesitation in confirming the order passed by Ld. CIT(A). Thus the Grounds raised by the Revenue are devoid of merits the same ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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