TaxTMI 
TaxTMI 
2019 (2) TMI 718
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....eleting the addition of Rs. 1,18,49,567/- made u/s. 68 of the I.T. Act on account of unexplained cash credit as the assessee failed to prove the identity, creditworthiness and genuineness of the said loan." 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition u/s. 68 of the I.T. Act on account of unexplained cash credit despite the fact that the party from whom the alleged loan was received by the assessee was listed as hawala entry provider who indulged in providing accommodation entry of unsecured loans and related to Rajendra Jain and his group." 3. "On the facts and in the circumstances of the case the finding of Ld. CIT(A| that the AO has only discussed the fa....
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....elated with Rajendra Jain group of cases namely M/s Arihant Exports. The AO asked the assessee to show cause as to why loan taken from M/s Arihant Exports should not be disallowed and added to the total income. As per the assessment order the assessee filed his reply along with the bank statement, copy of ledger, affidavit of M/s Arihant Exports and confirmation of the loan provider. The AO however, discussed in detail the modus operandi of giving accommodation entries employed by the Rajendra Jain Group of cases. The AO thereafter mentioned that it has been conclusively established that the assessee had taken accommodation entry of unsecured loan. The AO added the amount of loan as well as interest paid on such loan to the total income of ....
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....l of assessment order, it appears that the lender has filed copy of ledger a/c of the appellant, copy of ITR V, copy of his balance sheet as well as copy of his bank statement reflecting loan given to the appellant. In order to make addition u/s 68 AO had to establish that either the transaction was not genuine or the lender did not have credit worthiness or his identity was not established. As mentioned in para 4.5 above, the genuineness of transaction and the identity as well as the creditworthiness of the lender have been established. It can be seen from the assessment order that the entire focus of the AO was on the modus operands adopted by Rajendra Jain Group of cases to provide bogus accommodation entry of loan. The main rea....
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....has taken unsecured loans from the above parties by way of unaccounted cash/accommodation entries. We are unable to agree since the petitioner has clearly stated that all the payments were made by a/c payee cheques which were encashed in the bank account of the petitioner in the regular course of business. We find that the petitioner has also paid interest on this loans after deduction of tax at source and TDS returns are also accordingly filed. There is no dispute in regard to the above. We find nothing to support the said contentions of the revenue. The revenue 's contention in the affidavit in reply has no merit. On the other hand, the loans appear to be taken in the regular course of business..........." 4.8 After consideri....
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.....O. has treated the impugned loan transaction as bogus credited only on the ground that the enquiry was conducted in Rajendra Jain group of companies. The A.O. has given in detail the modus operandi of accommodation entries by Rajendra Jain Group. It is further noted that the A.O. has not made any independent enquiry of his own to prove that the impugned transaction is bogus. The ld. CIT(A) has given a finding that during the assessment proceedings following details were submitted: 1. Loan Confirmation from the lender. 2. PAN No. of the lender. 3. Copy of the Return of Income of the Lender which advanced the loan. 4. Copy of Bank account of (he Lender. 5. Copy of Bank A/c of the Assessee. ....