9911796707
TMI Blog2016 (5) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... of share application money and unsecured loan. These companies namely M/s. Lunkad Securities Ltd., Lunkad Media and Entertainment Ltd., West End Management Technologies (P) Ltd., Rajveer Marketing and Investment Ltd and M/s Lagoon Resorts (P) ltd. are situated at 13-Race Course Road, Indore. All these companies are being run in one room of the said survey premised by Shri Vijay Lunkad & his sons Shri Sanjeev Lunkad and Shri Ritesh Lunkad. Other than these, family members namely Smt. Sarla Lunkad, Smt. Sneha Lunkad, Smt. Rachna Lunkad and staff members namely Shri Rajesh Patel and Shri Ghanshyam Jagtap are also involved as directors. Modus Operandi Shri Vijay Lunkad, Shri Sanjeev Lunkad & Shri Ritesh Lunkad floated several companies (refer para 3) and associated themselves, their family and staff members as directors. Through these companies they started the alleged business of providing entries of unsecured loan, share application money, investment in real estate for needy persons who are actual beneficiaries: These persons used to give cash either directly to Lunkad or through mediators (refer para 4). These huge amount in cash so received were deposited in various bank accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. Vijay Lunkad / G. Jagtap Lunkad House, 13- Race Course, Indore 08 Rajveer Marketing & Investment Ltd. Sanjeev Lunkad/ Ritesh Lunkad Lunkad House, 13- Race Course, Indore 09 West-End Management Technologies P. Ltd. Vijay Lunkad/Sanjay Bindal Lunkad House, 13- Race Road 10 Rajveer Biotech (P) Ltd. Sanjeev Lunkad/ Ritesh Lunkad Course Lunkad House, 13- Race Course, Indore 11 Prateek Reality (P) Ltd. Sanjeev Lunkad Ritesh Lunkad Lunkad House, 13- Race Course, Indore 12 Alpine Eisen Ltd. Sanjeev Lunkad/ Sneha Lunkad Lunkad House, 13- Race Course, Indore 13 Indore Biosoft (Pvt) Ltd. 14 Ritesh Investment (P) Ltd. Vijay Lunkad/ G. Jagtap Lunkad House, 13- Race Course, Indore 15 Celerity Capital Market & Finvest (P) Ltd. Vijay Lunkad / G. Jagtap Lunkad House, 13- Race Course, Indore - 16 Alpine Agrotech Ltd. Sanjeev Lunkad / Sneha Lunkad Lunkad House, 13- Race Course, Indore 17 Alpine Infosys Ltd. Sanjeev Lunkad / Sneha Lunkad Lunkad House, 13- Race Course, Indore 18 Himalya Grah Nirman Sahakari Samiti Maryadit A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d commission ranging from 2% to 3%. The list of the company and corresponding charge of commission is as under: - S.No. Name of the Company Commission Remarks 1 Budharia Securities & Finvest Ltd. 3% Ref: Page 25-29, LPS 20, Survey document. 2. Parkson Holding Pvt Ltd. 2.75% -do- 3. LV. Modi Securities Ltd. 3% -do- 4. Ronima Finance & Investment Pvt Ltd 2.4% -do- 5. Krishna Krina Holdings Pvt Ltd. 2.75% -do- 6. Lagoon Resorts Pvt Ltd. 2.75% -d o- Authenticity of Documents: - Loose papers (page-38 OF LPS-34) containing details of payments in cash were impounded during the survey on Lunkads. Consequent to this a survey was further conducted on the business premises of M/s. Sachin Leasing (P) Ltd. & M/s. Castor Oil & Derivative (P) Ltd. This survey was particularly aimed at the amount of Rs.26,68,580/- which had changed hands at the time of transaction of land at Badia Kema, which was purchased by Smt. Sneha Lunkad W/o Sanjeev Lunkad & by M/s. Parth Credit & Capital Marketing Pvt. Ltd. (director Shri Sanjeev Lunkad). Shree Sachin Sharma, director of M/s. Sachin Leasing (P) Ltd., admitted to have received Rs. 26,68,500/- as unaccounted additional sale cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough cheque a web is created giving multiple entries in multiple Bank Accounts and shown in the respective companies either - share capital, share premium or unsecured loans. But when one try to see these transactions in totality it appears that it is a facade to bring the unaccounted cash available in the hands of various in the system. From the angle of nature of Business of the loan provider and the amount of income tax they are paying, it i~ clear from the P/L account of above four companies that these interest receipt and taxable income is totally mismatch. Particulars Interest Received Taxable A.Y. 05-06 Trimurti Finvset P. Ltd. Rs.89.68 lakh Nil Purvi Securities Ltd. Rs. 61.39 Lakh Nil East West Finvest Ltd. Rs.66.03Lakh (not eligible Nil K.K. Patel Finance Ltd. RS. 45.45 lakh Rs.11,813/- It is important to note here that assessee has not discharged his primary onus of producing the directors of M/s. Jayant Securities Ltd., in whose case also involvement with Lunkad group is evident from the impounded documents as stated above. Conclusion;- From the above discussion/findings, it is clear that the loan transactions with M/s. K.K. Patel Finance Ltd., is mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per point 3B reproduced on pages 7 & 8 of this order, AO observed that some companies including K.K. Patel Finance Limited (Anil Saini) has taken voluminous entries from Lunkad group of companies and finally routed these entries to ultimate beneficiaries. Since these findings pertains to same assessment year i.e. assessment year 2007- 08 and appellant could not controvert such facts either by furnishing any affidavit or relevant bank accounts of K.K. Patel Finance Limited & that of Lunkad, hence such addition of Rs. 5 lakh made u/s 68 of the Income-tax Act, 1961. Is confirmed because appellant failed to prove genuineness and creditworthiness of such creditor. Ground No. 6 of appeal dismissed. 7. Because ground no. 6 of appeal are dismissed, hence ground no. 7 &8 of appeal are also dismissed, because such grounds are consequential to ground no. 6. Ground No. 7 is on disallowance of interest of Rs. 34,684/- on aforesaid loan of Rs. 5 lakh. Ground No. 8 of addition of commission being paid accommodation entry of this loan, which is calculated at 5% of such loan i.e. 5% of Rs. 5,00,000/-. Both these grounds being consequential to ground no.6, ground nos. 7 & 8 of appeal are also dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imary onus of Section 68 has been discharged by the assessee as the assessee has given all the details. If the AO has any doubt regarding genuineness, then he should have done further enquiry. The AO has treated that his cash credit is unexplained only on the basis of survey conducted at Lunkad Group on 02.05.2006 and no finding has been given for treating this transaction as unexplained credit. The assessee was not given any opportunity that Lunkad Group was associates of the assessee. Therefore, the appeal may be allowed. 8. The ld. Departmental Representative submitted that the assessee has not submitted the Bank account, copy of account of loan before the AO and CIT(A). When the assessee has not given any evidence, then how the identity, capacity and genuineness of the creditors were explained. The ld. Departmental Representative also submitted that the assessee company is entry provider and which is proved from the survey of Lunkad Group. Therefore, the AO is justified in treating the loan as unexplained. The AO in the assessment order has explained the modus operandi of the assessee. When the assessee did not provide affidavit of relevant account of K.K. Finance Limited, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue does not satisfy with the source of the fund in the hands of the assessee. It was the Revenue to take the appropriate action. The burden of proof in loan transaction, it is well settled law that while considering the question whether the alleged loan taken by the assessee was genuine transaction, the initial onus always upon the assessee and if no explanation is given or explanation given by the assessee is not satisfactory, the AO can disbelieve the alleged transaction of a loan, but the Law is equally settled that if the initial burden is discharged by producing the sufficient material in support of loan transaction, the onus is upon the AO and after verification, he can call for further explanation from the assessee and in the process, the onus may again shift upon the Assessee. However, the AO failed to verify the same, the onus is discharged and no addition can be made. In this case, the assessee has proved the identity of the creditor. The assessee has produced books of accounts, confirmation of party, copy of the bank account of the creditor, proved the genuineness of the transaction. The assessee had taken loan of Rs. 5 lakhs and creditor has sufficient funds of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
