2018 (5) TMI 1904

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....T. Act, on account of unexplained cash credit as the assessee filed to prove the identity and creditworthiness of the lender," 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 the unsecured loans and related to Bhawarlal Jain." 3. "On the facts and in the circumstances of the case the finding of Ld CIT(A) that the A.O. has only discussed the facts of Bhanwarlal Jain group and the A.O. has not appreciated the fact that he was not ma....

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.... M/s Ankita 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, ITR and confirmation of the loan provider. The Assessing Officer however, discussed in detail the modus operandi of giving accommodation entries employed by the Bhanwarlal Group of cases. The Assessing Officer also recorded statement of Mr. Nitesh Hedpara, husband of the assessee u/s 131 of the Act. On the basis of the report of the Investigation Wing regarding the modus operandi employed by Bhanwarlal Jain Group of cases and on the basis of statement of the husband of the assessee the Assessing Officer came to a conclusion that the assessee had taken accommodation entry of unsec....

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....ho was authorized to be sent before the AO. It is seen from the assessment order that the husband of the appellant has clearly confirmed in the statement recorded u/s 131 of the Act that the appellant had taken loan from M/s Ankita Exports. It was also clearly stated in the statement that interest has been paid against the loan. The AO had asked the appellant to produce the person who had arranged this loan as well as the partners of M/s Ankita Exports. It is the contention of the AO that the appellant failed to produce the parties before him. But the appellant cannot be reasonably expected to force the creditor to appear before the AO. In this case, the lender is accepting that it had advanced loan. The appellant is also accepting that it ....

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....in WP No. 167 of 2015 dated 15.04.2015 in the case of M/s Rushabh Enterprises Vs ACIT 24(3) and Ors. In this case also, the assessee had taken loan from concerns related with Bhanwarlal Jain group of cases. In its order the Hon'ble Bombay High Court in addition to deciding the legal validity of reopening of assessment also discussed the facts of the case. The Hon'ble Bombay High Court in para 8 Of its order Stated '*......according to her (AO) the revenue has received information from the DGIT (Inv) that the assessee 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 ....