2018 (3) TMI 1734

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.... Revenue is aggrieved by the impugned order dated 24.10.2016, of the ld. First Appellate Authority, Mumbai, deleting the addition of Rs. 40,00,000 made u/s 68 of the Income Tax Act, 1961 (hereinafter the Act) on account of unsecured loan from the person engaged in providing accommodation entry. 2. During the hearing, the learned D.R., Ms. N. Hemlata, defended the assessment order and consequent....

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....ssee. Later on, the case of the assessee was re-opened u/s 147 on the basis of information that the assessee has received accommodation entry of unsecured loan from M/s. Laxmi Trading Company, M/s. Mouli Gems, M/s. Minal Gems, M/s. Naman Exports and M/s. Prime Star, pertaining to Bhawarlal Jain Group. As per the assessee, during the assessment proceedings, documentary evidences pertaining to loan ....

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....on, and analysed there is a factual finding in Para-5.3 that the assessee discharged the primary onus as the lender had responded to notices issued u/s 133(6) of the Act confirming the transaction. The learned Assessing Officer did not controvert the claim of the assessee. The loans were taken through banking channel and the receipt of taking the loan has been duly examined in Para-5.3 (Page-13) o....

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....is no mention that any accommodation entry was obtained. Rather, the case of the assessee is fortified by the reply to question no.40 and 41 wherein it has been tendered that the loan was advanced and interest @ 9% p.a. was charged. The name of the assessee is nowhere mentioned in the list of suspicious dealer / person. Thus, I find no infirmity in the conclusion of the learned CIT(A), resulting i....