TaxTMI 
TaxTMI 
2016 (3) TMI 456
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....at the creditworthiness and genuineness of the lender company could not be proved and established. The ld. CIT(A) has failed to appreciate that the appellant has taken the loan through account payee cheque, returned amount by account payee cheque, both were routed through regular banking channel, interest was paid and TDS was deducted and deposited by appellant and claimed by lender in its IT Return, confirmation was filed. The lender is a body corporate, transaction was duly entered in books. PAN of lender was given and request of appellant to summon the person who made incriminatory statement was not granted. 2. That the ld CIT(A) has erred in holding that the Assessing Officer was justified in invoking the provisions of Section 147 an....
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....there was allegation that some parties have taken entries from this company. The assessee also has held to be involved in getting the entries from this group but it is argued that the assessee has taken this loan from M/s K.G. Petrochem (P) Ltd. through account payee cheque, which has been repaid to him. The assessee had furnished all the details before the Assessing Officer, therefore, proceeding U/s 148 is deserved to be quashed. The ld DR has vehemently supported the order of the ld /CIT(A) and argued that in this case no scrutiny U/s 143(3) has been made by the department and department was having information against the assessee that the assessee was involved in taking entry through M/s B.C. Purohit and company. Therefore, reopening U/....
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....nd on the basis of this statement, the ld Assessing Officer gave the reasonable opportunity of being heard to the assessee. The assessee appeared and filed reply on 30/11/2010, which has also been reproduced on page 10 and 11 of the assessment order. After considering the assessee's reply, it was held by the Assessing Officer that the assessee had failed to prove the creditworthiness and genuineness of the transaction. Copy of the bank account of K.K. Petro Chemical was not provided till date. K.K. Petro Chemical was also not produced for verification before the Assessing Officer. Therefore, he held that this is an accommodation entry of Rs. 3 lacs. Accordingly he made addition of Rs. 3 lacs U/s 68 of the Act. 5. Being aggrieved by t....
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.... his statement recorded by the department that a loan of Rs. 3 lacs had been given to the assessee company and such loan was bogus or accommodation entry. He further argued that the assessee had deducted TDS on interest payment and paid to the government. The loan amount already repaid to the loanee. The copy of statement recorded during the course of search of Shri Kripa Shankar Sharma had not been provided to the assessee. The assessee vide letter dated 30/11/2010 had requested to the Assessing Officer to provide the copy of statement recorded by the department and copy of the seized material connected with in the case of B.C. Purohit & Company group. The assessee also requested for arranging cross examination of the party to bring on rec....