2014 (7) TMI 334

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....led out from the material on record are as under. 4. Assessee is a firm stated to be engaged in the business of Developers Contractors, Building Organizers. Assessee filed its return of income for A.Y. 2007-08 on 01.10.2007 declaring total income of Rs. Nil. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 29.12.2009 and the total income was determined at Rs. 31,00,000/-. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) vide order dated 16.11.2010 dismissed the appeal of the Assessee. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. 5. The grounds raised by Assessee reads as under:- 1. The learned CIT(A) erred in l....

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.... the unsecured loan of Rs. 31,00,000/- as income under section 68 of the Act. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) confirmed the order of A.O by holding as under:- 9. After going through rival submissions it is seen specially from the reply of the bank that that bank account of Kesha Construction was opened by the two partners of the appellant firm namely : Shri Harsukh Nanjibhai Pansuria and Shri Ronak D Trivedi. It is also seen that the firm Kesha Construction consists of the same partners as the appellant firm - Raj Corporation. There are four partners in the firm Raj Corporation as under: i. Shri Harsukhbhai N Pansuria ii. Shri Parshottambhai N Pansuria iii. Shri Ronakbhai D Trived....

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....ing in the PAN data base of the Income tax Department. Thus the credit worthiness of Kesha Construction is not proved an0d neither genuineness of the transaction because same set of individuals is lending to same set of individuals. And the bank account shows very meager balance before and after lending. Immediately before lending same amount is received through banking channel from a dubious entity and after lending again a meager balance is left in the bank account of Kesha Construction which has exactly the same four individuals as partners in the same line of construction and real estate business as the appellant firm. Thus in the present matrix of facts in my view the genuineness and credit worthiness of the creditor - Kesha Constructi....