TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 265
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....ion of the lenders before the Assessing Officer." 2. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income tax (Appeals) has erred in not considering that the addition was made on the basis of information received from the DGIT (Inv.), with regard to bogus loan taken by the assessee from Shri Pravin Kumar Jain Group." 3. At the outset, the Ld. counsel for the assessee submitted that the issue raised by the revenue is covered in favour of the assessee by the order of the ITAT, Mumbai in assessee's own case for the AY 2007-08. Since, there is no change of facts in the present case and the ITAT has decided the identical issue in favour of the assessee, the Ld. CIT (A) has rightly allowed the assessee's appeal and decided the issue in favour of the assessee. The Ld. counsel further pointed out that since the findings of the Ld. CIT (A) are in accordance with the decision of the Mumbai Tribunal, there is no merit in the revenue's appeal. In view of the aforesaid facts, the Ld. counsel submitted that the appeal filed by the revenue may be dismissed. 4. On the other hand, the Ld. Departmental Representative (DR) supporting the assessment orde....
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....bai in ITA No. 1819/Mum/2012. Both the cases relates to re-opening of assessment on the basis of statements of Mr. Mukesh Choksi and Mr. I.C. Choksi and associated brokerage companies. The Hon'ble ITAT on the analysis of the findings made in the assessment orders has reached to the conclusion that the re-opening itself is bad in law and quashed the orders accordingly. The ratio of these judgments is applicable to the facts of the instant case. This is confirmed by the Delhi Bench of the Income Tax Appellate Tribunal in the case of DCIT v. Nipun Builders & Developers P. Ltd. (ITA No. 557/DEL/2010) wherein the Tribunal dismissed the Revenue appeal by holding that the Assessing Officer has primarily relied upon the Report of the Investigation wing which cannot conclusively prove that assessee's own money was invested in the form of share application money. Further, it may be pointed out that section 68 under which the addition has been made by the Assessing Officer reads as under:- "68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by ....
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....ed by A/c payee cheque. Creditworthiness of the lender can be established by attending circumstances. 5.18 During the assessment proceedings, the appellant has submitted Loan Confirmations, Copy of Acknowledgement and Copies of the Bank Statements of Ansh Merchandise P. Ltd., Casper Enterprises P. Ltd., Mohit International and Matasha Enterprises. If the above referred principles are applied to the facts of the case under consideration, it can be seen that the identity of the creditors has been established as they are having PAN and they are regularly filing return of income. The genuineness of the transaction is established from the fact that both the acceptance and repayment of loan has been through banking channels. The creditworthiness of the lenders can be established from the statements. In the assessment order, the A.O. did not at all discuss the merit of submission made by the appellant and casually brushed aside the details filed by the appellant. Further, the appellant has stated that he had furnished all the relevant details during the course of the assessment proceedings and accordingly had duly discharged its onus by furnishing the identity and address of the parties....
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.... of the Ld. CIT (A) holding as under:- "6. We have heard the rival submissions, perused the orders of the authorities below. Assessing Officer made addition by placing reliance merely on the statements of Shri Praveen Kumar Jain Group and Shri Bhanwarlal Jain Group which were recorded u/s 132 (4) of the Act. No independent enquiry was carried out by the Assessing Officer, he has not brought any corroborative evidence to substantiate that the transactions are non-genuine. Assessee provided various evidences to establish that the transactions are genuine, creditors are identifiable and creditworthiness is proved. Following information is furnished by the assessee. (1) Confirmation of A/s by the parties. (2) Income tax returns of the parties for A.Y. 2012-13. (3) Bank Statements of the parties showing the loan transactions. 7. By providing all this information to the Assessing Officer the assessee has discharged the initial onus of proving genuineness of the transactions u/s. 68 of the Act. Even the assessee requested Assessing Officer for issue of notices u/s. 133(6) of the Act to the lenders to find out the genuineness of the transactions with the assessee. Therefore, once....