2019 (6) TMI 850

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....read as under: i. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 3,54,13,062/- made u/s 68 of the I.T. Act on account of unexplained cash credit as the assessee failed to prove the identity and creditworthiness of the lender. ii. 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 Bhanwarlal Jain. iii. On the facts and in the circumstances of the case t....

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....ring in the list of beneficiaries of accommodation entries from Bhanwarlal Jain Group: Sr. No. Name Amount 1. Navkar India Rs. 16,62,000/- 2. Rajan Diamond Rs. 1,23,02,340/- 3. Mohit Enterprises Rs. 11,08,000/- 4. Mukti Exports Rs. 22,16,000/- 5. Pushpak Gems Rs. 32,22,668/- 6. Navkar Diamonds Rs. 15,11,096/- 7. Mehul Gems Pvt. Ltd. Rs. 20,89,358/- 8. Daksh Diamonds Rs. 29,91,600/- 9. Jewel Diam Rs. 11,08,000/- 10. Kothari & Co. Rs. 11,08,000/- 11. Minal Gems Rs. 33,24,000/- 12. Rose Impex Rs. 27,70,000/-   Total Rs. 3,54,13,062 During the course of assessment proceedings, the AO issued summons to the above parties vide notice dated 31.02.2015 to appear before him. H....

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....eedings, the assessee filed before the AO (i) loan confirmations from lenders, (ii) PAN of the lenders, (iii) copy of the return of income of lenders, who advanced the loan, (iv) copy of bank account of lenders (v) copy of bank account of the assessee and (vi) copy of balance sheet and P & L account of the lenders. The Ld. CIT (A) found that the interest paid against such loan has been subject to TDS. As per him, the identity of the creditors has been established as the concerned PAN has been filed and they are filing the return of income. The creditworthiness of the lenders can be established from the bank statements and balance sheet which were filed before the AO. The Ld. CIT (A) observed that the entire focus of the AO was on the modu....

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..../- made by the AO u/s 68 of the Act. 5. Before us, the Ld. DR relies on the decision in Pr. CIT vs. Bikram Singh (2017) 85 taxmann.com 104 (Del) and Pr. CIT vs. NRA Iron & Steel Pvt. Ltd. 2019 (3) TMI 323 (SC). 6. On the other hand, the Ld. counsel for the assessee submits that in the following decisions, similar addition made by the AO in respect of loan from Bhanwarlal Group has been deleted by the Tribunal. 1 ITA No. 6099/Mum/2016 DCIT (CC)-1(3)vs. M/s Jainam Investments 2. ITA No. 1414/Mum/2017 DCIT 25(1) vs. M/s YRV International 3. ITA No. 2100/Mum/2016 and ITA No. 1645/Mum/2017 Shri Ashok Nagraj Mehta vs. ACIT Circle 19(1) 4. ITA No. 7049/Mum/2016 Asst CIT-19(1) vs. Shri Dilip Chimanlal Gandhi 5. ITA No. 7049 & 7050/....

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....f the investor companies and to examine the genuineness of the transaction. Enquiries were made at Mumbai, Kolkata and Guwahati, where these Companies were stated to be situated. On the basis of the detailed enquiries conducted, the AO held that the assessee had failed to prove the existence of the identity of the investor companies and genuineness of the transaction. As mentioned earlier, in the instant case the entire focus of the AO was on the modus operandi adopted by Bhanwarlal Jain Group of cases to provide bogus accommodation entries of loan. The main reason of the AO for making addition u/s 68 was on the basis of information provided by the Investigation Wing of the Department. No independent enquiry has been conducted by the AO as....