TaxTMI 
TaxTMI 
2019 (6) TMI 850
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..... The grounds of appeal filed by the revenue 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.....
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....n Wing that the assessee had obtained loans from the following parties, appearing 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 Duri....
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.... AO mad an addition of Rs. 3,54,13,062/- u/s 68 of the Act. 4. In appeal, the Ld. CIT(A) observed that during the course of assessment proceedings, 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....
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.... be taken in the regular course of business........" In view of the above facts and decision cited above, the Ld. CIT (A) deleted the addition of Rs. 3,54,13,062/- 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/2....
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....s through dak, which created a doubt about the identity of the investor companies. Thereafter, the AO independently got field enquiries conducted with respect to the identity and creditworthiness of 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 ....