AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (11) TMI 748
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.... filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 ( in short 'the Act'). On the basis of the search and seizure action under section 132 of the Act carried out in the case of Shri Bhanwarlal Jain and group concerns on 03/10/2013, information was received by the Assessing Officer of the assessee that the assessee is one of the beneficiaries of bogus concerns operated and controlled by Shri Bhanwarlal Jain and Shri Rajesh Jain. The aforesaid persons had floated various companies/benami concerns and were engaged in providing accommodation entries in the form of bogus unsecured loans, bogus purchases and bogus capital gains, etc. It was alleged that during the period relevant to the assessment year under appe....
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....tter travelled upto the Tribunal in an appeal by the assessee in ITA No.1236/Mum/2017. The Tribunal vide order dated 20/04/2018, allowed the appeal of assessee on merits. Since, the reasons recorded for reopening assessment in assessment year 2012-13 are on similar lines, the addition is liable to be deleted in the light of Tribunal order in ITA No.1236/Mum/17 dated 20/04/2018(supra). 4.1 The ld. Authorized Representative of the assessee raised multiple contentions assailing the addition. He contended that the basis of entire addition is statement of Shri Bhanwarlal Jain recorded under section 132(4) and under section 131 of the Act after search and seizure action. The authorities below without appreciating the documentary evidences furni....
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....he addition made on account of non-genuine unsecured loans are liable to be deleted for parity of reasons recorded by the Tribunal in assessment year 2010-11(supra). 5. On the other hand, Shri. S.K.Jain representing the Department vehemently supported the impugned order. The ld. Departmental Representative submitted that reassessment proceedings were initiated by the Assessing Officer after recording reasons. The Assessing Officer in reasons for reopening has given source of information for initiating reassessment, the assessment was reopened by Assessing Officer after analyzing the information with due application of independent mind. The ld. Departmental Representative submitted that Shri Bhanwarlal Jain in his statement recorded during ....
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....ear 2010-11 in ITA No.1236/Mum/2017 dated 20/04/2018(supra), wherein addition made on account of unsecured loan from M/s. Rose Impex was deleted by the Coordinate Bench. The relevant extract of the findings of the Tribunal on the issue reads as under:- " 7. We have heard the rival contentions, and perused the record. The Assessing Officer has made impugned addition u/s. 68 of the Act on the ground that loan of Rs. 25 lakhs taken from Rose Impex was bogus since Rose Implex belonged to Mr. Bhanwarlal Jain group and Mr. Bhanwarlal Jain has accepted that his group was providing only accommodation entries. On the contrary, we noticed that the assessee has furnished all documents necessary to discharge burden of prove placed upon it u/s. 68 of ....
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....assessee. Further, it can be noticed that Rose Impex has taken loans from various persons, which formed source for giving loan to the assessee. Hence, it cannot be said the Rose Impex was not having funds for giving loan to the assessee, meaning thereby, creditworthiness of the creditor also stands proved. Hence, there is merit in the contention of the learned AR that the assessee has discharged primary onus placed upon it u/s. 68 of the Act. The Hon'ble Gujarat High Court has held in the case of Sachital Communications (2014) 227 Taxman 219, that if identity of creditor and capacity of the creditor is proved and the transactions have been carried out through banking channel, then no addition could be made on account of unsecured loan....
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....as repaid Rs. 50,00,000/- to M/s. Navkar Diamonds on 25/03/2013 through RTGS transaction. Apart from above, we observe that M/s. Navkar Diamond in its books for the year ending 31/03/2012 has shown loan advanced to the assessee under the head 'Loans and Advances' Rs. 50,00,000/-. The said firm has also filed confirmation supporting asessee's claim of unsecured loans. The authorities below have simply brushed aside the documents furnished by the assessee, which inter-alia, includes confirmation from the lending parties, copy of bank statement of the assessee, copy of acknowledgement of return of income of lenders, etc. furnished by the assessee during the assessment proceedings. The authorities below have made addition merely on the basis of....