TaxTMI 
TaxTMI 
2019 (8) TMI 1062
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....peals filed by the Appellant- Assessee. 2. Appeal No. 634 of 2017 relates to Assessment Year 2007-08 and Appeal No.635 of 2017 relates to Assessment Year 2008-09. The Appellant urges the same questions of law in these two Appeals, and the Appeals are disposed of by this common order. 3. The Appellant - Assessee, is engaged in the business of construction and development of real estate. The Appellant filed its return of income on 26 October 2007 declaring total income of Rs. 11,23,490/-. A notice was issued under Section 143(2) of the Income Tax Act, 1961 to the Appellant, calling for various details, and the information was supplied. On perusal of the balance-sheet of the Appellant, the Assessing Officer observed that the Appellant - had ....
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....Appellant claimed that the loan transaction with Moxdiam was genuine and produced a confirmation letter. The Appellant also filed two affidavits of partners of Moxdiam dated 22 August 2008 and 18 February 2011. The Commissioner (Appeals) called for a report from the Assessing Officer. 5. Upon the remand report received from the Assessing Officer, the Commissioner (Appeals) considered the case of the Appellant regarding the theory of loan. The Commissioner (Appeals) noted the financial position of Moxdiam and held that looking at the financial condition of Moxdiam it is not believable that M/s. Moxdiam could give a loan of Rupees One crore to the Appellant. The Commissioner (Appeals) also referred to the activities of accommodation entries ....
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....ppellant had satisfactorily explained the loan of balance amount for M/s. Moxdiam in its Books of Account. This substantiated all the ingredients of Section 68 of the Income Tax Act could not be included in the present facts. He submitted that though there is evidence on record that Moxdiam was indulging into accommodation entries it cannot ipso facto mean that the loan given by Moxdiam to the Appellant was not genuine. He submitted that the Appellant had produced the loan confirmation from Moxdiam, copy of the bank statement of Moxdiam reflecting the payment, copy of the acknowledgment of Return of Income filed by Moxdiam. He further submitted that the amount was received through crossed cheques and was repaid by the Appellant by crossed ....
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....r of the Tribunal was perverse in as much it dealt with the judgments relied upon by the Appellant without discussing the applicability of the ratios laid down in each case to the facts of the Appellants case in a summery fashion using a common reasoning for different propositions of law put forth by the Appellant ? (4) Whether on the facts and circumstances of the case, action of addition on account of providing accommodation entries should have been made in the hands of the lender and not the Appellant in the light of the Appellant discharging the initial onus placed upon it ? (5) Whether on the facts and circumstances of the case, the Interest expenditure of Rs. 93,000/- on loans taken for the purpose of business on the aforementione....
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....nancial conditions and to earn bread and butter I used to issue accommodation bills, and therefore, I do not have equipment and apparatus used in diamond trade and under these circumstances, there is no stock or place for stock found in this premises, I have also no capacity to invest such huge sum or huge amount in purchase/import of diamonds. In real sense all the investment made belong to other, and I am not in a position to tell you their names and address as I disclose their identity there will be danger to my life. Thus, Mr. Jain has admitted that he cannot invest any considerable sum, and due to his unsound financial condition and to earn bread and butter, accommodation bills had to be issued. Though sought to be retracted, this adm....
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....an situation where no such established evidence regards the lender indulging into accommodation entries exists. Such a burden cannot be casually shifted as contended. Merely because certain entries have been shown in the books of accounts of Moxdiam, they cannot be held to be conclusive and must be construed in light of all surrounding circumstances. The genuineness of the loan transaction, financial capacity, and the surrounding circumstances are some criteria for determination in such matters. 16. It is in this background that the claim of the Appellant it is dealing with Moxdiam was not for accommodation entry, but a genuine loan transaction, had to be tested by the authorities. Two authorities and the Tribunal have evaluated each piece....