2018 (5) TMI 1801

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....ct'). 2. The grounds of appeal filed by the Revenue read as under: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting addition of Rs. 50,00,000/- on account of bogus loans. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not considering that the addition was made on the basis of information received from DIT(Inv.) with regard to bogus loans taken by the assesses from Shri Bhanvarlal Jain Group. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not considering that hawala operators have admitted on oath before the DIT(Inv.) Authorities. 4. On the facts and in the circumstances of the case a....

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....gned assessment year and an amount of Rs. 4,50,000/- towards interest payment. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) held that (i) the AO has solely relied upon the statement of Shri Bhawarlal Jain and did not carry out any worthwhile independent inquiry in the matter, (ii) the AO has totally ignored the documentary evidence submitted by the assessee, (iii) even if some of the transactions entered into by the above parties are found to be not genuine, it does not lead to the conclusion that all the transactions entered into by these parties were bogus or non-genuine including the transactions related to the assessee. With the above reasons, the Ld. CIT(A) held that mere....

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....e had submitted the copies of ITR and loan confirmation of the above party. Also the bank statements were provided to the AO which were reflecting the receipt of funds from the parties and payment of interest by the assessee. It is finally stated that the AO has made the addition based on the ground that the lender belonged to so-called Shri Bhanwarlal Jain and Group and the transaction was a bogus one, without giving any opportunity to the assessee to cross-examine the party in spite of repeated requests made. Also the assessee provided to the AO all the documents which can prove that the transaction was genuine which was ignored. The Ld. counsel of the assessee files a Paper Book (P/B) containing (i) Ledger Confirmation, (ii) Bank Stat....