TaxTMI 
TaxTMI 
2018 (8) TMI 1776
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....idering the following decisions of the Hon'ble Supreme Court in Roshan Di Hatti vs. CIT(SC) 107 ITR 938, Kale Khan Mohammed Hanif vs. CIT(SC) 50 ITR 1 and Sreelekha Banerjee & Ors vs. CIT(SC) 49 ITR 112." 4. The appellant prays that the order of the Learned CIT(A) on the above grounds be set side and that of the AO be restored. 5. The Appellant craves leave to amend or alter or delete any ground or add a new ground which may be necessary. 2. The brief facts of the case are that, the assessee filed the return of income in the capacity of HUF, on 25-09-2012, declaring a loss of (-) 2,75,54,633/-. The assessee is engaged in the business of 'trading and manufacturing in diamonds'. The case was selected for scrutiny by CASS and statutory notice u/s 143(2) of the Act was issued on 06-08-2013. Subsequently notice u/s 142(1) of the Act was issued on 12-09-2014 along with questionnaire. Due to the change in jurisdiction, fresh notices under the sections were issued once again by the new AO. Assessment u/s 143(3) of the Act, was finalized by the Ld. AO on 24-03-2015, determining the total income at 1,28,86,260/-, after setting off the loss. 3. Search & Seizure operations as....
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....he three essential ingredients such as identity, creditworthiness and genuineness of the loan lenders, there by the loans are squarely covered by the provisions of section 68 of the Act and added to the total income of the appellant. Since the loans were treated as accommodation entries, the interest debited to the P & L account, claimed to have been paid towards such loans to the tune of 21,30,894/- was also disallowed and added to the total income, u/s 37 of the Act. Penalty proceedings are initiated u/s 271(1)(c) of the Act, for filing inaccurate particulars of income. 4. Aggrieved by the order of AO, assessee preferred appeal before Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties, partly allowed the appeal of the assessee. 5. Now before us, the revenue has preferred the present appeal by raising the above grounds. Ground No. 1 to 4 6. Since all the grounds raised by the revenue are inter connected and inter related and relates to challenging the order of Ld. CIT(A) in holding that the accommodation entries in the names of Marvin Enterprises, Meenakshi Exports, Meenakshi Diamonds Pvt. Ltd. and Mukti Exports were genuine when in the search by the Inv....
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....,10,000 were obtained. The evidence also reasonably proves creditworthiness of the creditors and the genuineness of the transactions. Moreover, how all the loans were obtained and repaid through the bank accounts, in the same-year or in the subsequent year were also furnished in the notarised affidavits before the AO(copies of which are furnished in the present proceedings) which is discussed in Para 6.3.12 above. 6.3.30 Thus, it has to be said that the appellant had done everything in its power to prove the three ingredients required to prove the satisfactory nature of the loan transactions. In these circumstances, the onus had shifted to the Assessing Officer. If the Assessing Officer was still not satisfied, he had the option of making inquiries from the alleged lenders by summoning them. However, as seen from the assessment order, he did not do any such thing. Further, if the Assessing Officer was not satisfied with what had been given to him by the appellant, he was duty bound to specify what more material he wanted the appellant to furnish. The Assessing Officer never asked for any further material, this leads to the inescapable conclusion that the Assessing Officer could n....
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....all be at liberty to approach this office in case such penalty is imposed by the AO in future. For the statistical purpose, this should be taken to be dismissed grounds of appeal. 9. In Ground No. 3 of the appeal it is stated that, 'The appellant craves leave to add, alter, vary, omit, substitute or amend, the above grounds of appeal, at any time before or at, the time of hearing, of the appeal, so as to enable to learn Commissioner (Appeals) to decide the appeals according to law. The appellant also craves leave to submit additional documents and facts as may be necessary for the purpose of disposal of this appeal'. No such option has been exercised by the appellant during the appellate proceedings. Therefore, it is clear that this ground of appeal is academic in nature and no decision is required in respect of this ground of appeal. For the statistical purpose, this should be taken to be dismissed grounds of appeal. 10. In the result, for the statistical purposes, appeal filed for the A.Y. 2012-13, is treated as 'PARTLY ALLOWED'. After having gone through the facts of the present case as well as considering the orders passed by revenue authorities, judgments ....