2012 (11) TMI 1257

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.... Section 260-A of the Income-tax Act, 1961, hereinafter referred to as "the Act", against the order dated 23rd April, 2009 passed by the Income-tax Appellate Tribunal, Agra deleting the addition of Rs. 11,00,000/- made by the Assessing Officer on account of unexplained cash credit under Section 68 of the act and also the interest of Rs. 49,167/- paid on the loans. The Revenue has proposed followin....

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....essment Year 2002-2003. The respondent-assessee is a proprietary firm which carries on the business in the name and style of M/s V.K. & Co. with its proprietor Shri Vijai Kumar Jain. It has been stated before the Assessing Officer that the firm had taken loan of Rs. 8,00,000/- from M/s. Amit Agarwal & Co. and Rs. 3,00,000/- from M/s. Baij Nath Agarwal and Co. As there was a raid in the business pr....

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.... worthiness etc. of the lenders have been disclosed. The Commissioner Income-tax (A) further found that merely because there was a search in Ganga Ram Agarwal & Companies, no inference regarding giving of bogus/accommodation entries could be drawn. The Commissioner of Income-tax (A), therefore, deducted the addition and the appeal preferred by the Revenue has been dismissed. 3. We have heard Shri....

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....ey were involved giving bogus/accommodation entries. Even if, findings recorded by the Assessing Authority to that effect is not correct and can not be relied upon. From the facts found by the authorities, it is clear that the amount of loan was advanced through the Account Payee Cheques and PAN numbers were also furnished. The amount has been repaid through account payee cheques and the lenders h....