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TMI Blog2024 (12) TMI 1326X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the course of search to support the allegations of the ld AO. Hence nothing was found to substantiate the allegations of the AO to allege that the unsecured loan received by the assessee was in the nature of accommodation entry from the lender company. It is not in dispute that the assessee company is having running account with the lender company which is evident from the ledger account for the period 1.4.2015 to 31.3.2021 containing loans received in various years (which stood accepted by the revenue u/s 143(3) of the Act except AY 2017-18 as detailed supra) and loans being repaid in various years by the assessee company. Source of source of funds of the lender company is also proved by the assessee in the instant case. Hence there is absolutely no case for the revenue to justify an addition u/s 68 - Decided in favour of assessee. - Shri Saktijit Dey, Hon ble Vice President And Shri M. Balaganesh, Accountant Member For the Assessee : Shri Salil Agarwal, Sr. Adv., Shri Shailesh Gupta, CA For the Revenue : Shri N. G. Joseph Gangte, CIT DR ORDER PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.948/Del/2024 for AY 2021-22, arises out of the order of the Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... real business activities. 5. The assessee submitted the bank statements for the period 1.4.2020 to 31.3.2021, confirmation from the lender company, ledger account of the lender company as appearing in the books of the assessee company for the period 1.4.2015 to 31.3.2021, financials of the lender company and ITR of the lender company. As stated in earlier paragraph, notice u/s 133(6) of the Act issued by the ld AO were duly served and replied directly by the lender company by furnishing the requisite details. The lender company was claimed to be engaged in the business of real estate as that of the assessee company. The ld AO observed from the financials of the lender company that there was no tangible or intangible assets reflected thereon in the financials and the said company does not have any operational income from any stated business during the year. The assessee was asked to produce the director of the lender company on 26.9.2022 along with documentary evidences with respect to the unsecured loan received during the year. In response thereto, Shri Sunil Srivastava (Director of lender company) appeared before the ld AO on 26.9.2022 and a statement stood recorded from him on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. It was submitted that all the documents to prove the three ingredients of section 68 of the Act viz. identity of the lender, genuineness of transactions and creditworthiness of the lender company were already furnished before the ld AO. 7. The ld AO however reiterated the earlier observations and concluded that the three ingredients of section 68 of the Act does not stand proved and hence the amount received was deemed to be treated as income of the assessee for the year under consideration. 8. The ld CIT(A) however appreciated the entire contentions of the assessee and deleted the addition by observing as under:- 8. Ground Nos. 1 to 4: In these grounds of appeal, the appellant challenged the addition made by the Assessing Officer u/s. 68 amounting to Rs. 31,22,50,000/- on account of unsecured loan observed in the Assessment Order that during the year under consideration, the appellant has received Rs. 31,22,50,000/- as unsecured loan cash credits from M/s. Dreamland Buildshoppe Pvt. Ltd. (M/s Dreamland). The Assessing Officer has further observed that addition on account unsecured loans received from the creditor same company was a matter of dispute in AY 2017-18 which was dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant further submitted that during the year under consideration, it has repaid loan of Rs. 42,06,02,042/- to M/s. Dreamland and received fresh loan of Rs. 31,22,50,000/-. In the preceding years as well the appellant took loans from the creditor company and repaid and submitted ledger account of M/s. Dreamland in its books from 01.04.2015 till 31.02.2021 and stated that all the years were assessed u/s 153A or 143(3) without any adverse remarks on credits except in AY 2017-18 as discussed above which was also deleted by the first appellant authority. 8.2 The appellant submitted bank statement of M/s. Dreamland Buildshoppe Pvt. Ltd and explained that the spurce and unsecured loan is the finds received from Uppal Hotel Pvt. Lted, Uppal Projects Pvt. Ltd and M/s Darbhanga Estate Pvt. Ltd as under:- Date Received from Given to Name Amount Name Amount 01/12/2020 Uppal Hotels Pvt. Ltd 18 lacs Uppal Housing Pvt. Ltd 18 lacs 01/12/2020 Uppal Projects Pvt. Ltd 5 crores Uppal Houisng Pvt. Ltd 5 crores 07/01/2021 Uppal Hotels Pvt. Ltd 25 crores Uppal Houisng Pvt. Ltd 25 crores 12/01/2021 Uppal Hotels Pvt Ltd 7 lacs Uppal Housing Pvt. Ltd 6.50 lacs 03/03/2021 Dharbhanga Estate Pvt. Ltd 98 lacs Up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Sunil Srivastava, Director of the creditor company, in response to Question No.8, has categorically stated that M/s. Dreamland Buildshoppe Pvt. Ltd. received funds Uppal Group of companies for exploring real estate business and these funds have been given to the assessee company for time being. He has further stated that M/s. Dreamland Buildshoppe Pvt. Ltd has its physical address at A-21, 4th Floor, Green Park, New Delhi but all the 'administrative decisions relating to M/s. Dreamland Buildshoppe Pvt. Ltd. Is taken by Shri Manish Uppal from the office of the assessee's company ie. first floor, East Tower, NBCC Place, Lodhi Road, New Delhi-110003, the premise which was covered in the search operation u/s. 132 of the Act. Therefore, it is an admitted fact that M/s Dreamland is controlled by Mr Manish Uppal through his employee and operates from the premise of appellant but these facts on their own do not make the loan in question unexplained. The immediate trail of source in the books of creditor has been submitted by the appellant alongwith confirmations of accounts, their audited statements and statement of bank A/e. The source of funds in the books of M/s Uppal Hotel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of transactions could not be doubted at all. 11. The notice issued u/s 133(6) of the Act behind the back of the assessee stood directly served on the lender company and the same was also duly responded by the lender company directly before the ld AO by furnishing the requisite details. Hence the identity of the lender company cannot be doubted at all. 12. Further the assessee was also subjected to search u/s 132 of the Act and nothing incriminating was found during the course of search to support the allegations of the ld AO. Hence nothing was found to substantiate the allegations of the ld AO to allege that the unsecured loan received by the assessee was in the nature of accommodation entry from the lender company. It is not in dispute that the assessee company is having running account with the lender company which is evident from the ledger account for the period 1.4.2015 to 31.3.2021 containing loans received in various years (which stood accepted by the revenue u/s 143(3) of the Act except AY 2017-18 as detailed supra) and loans being repaid in various years by the assessee company. Source of source of funds of the lender company is also proved by the assessee in the instan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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