TaxTMI 
TaxTMI 
2020 (6) TMI 410
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.... both the sides were heard at length, the case records carefully perused and with the assistance of the ld. Counsel, we have considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules and have also perused the judicial decisions relied upon by both the sides 5. Briefly stated, the facts of the case are that a search was conducted at Ahmedabad and New Delhi in which certain documents were found and seized by the search party. From the documents found, unaccounted money lending business of Shri Asharam Bapu and his associates came into light. It also came to the knowledge of the Revenue that there were several beneficiaries. Statement of one Shri Devi Das Tikamdas was recorded u/s 131A r.w.s 131 of the Act on 25th and 26th September, 2015. 6. In his statement, Shri Devi Das Tikamdas Chattani stated that whole of the loan account was maintained by one Shri Popat Lal Vani. Shri Devi Das Tikamdas Chattani also stated that one Shri Sant Lal Aggarwal was handler of Rs. 200 crores at Delhi from where the loan was disbursed to around 100 parties, out of which 60 such parties were transacted through Shri Sant Lal Aggarwal. 7....
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....he Assessing Officer who concluded by making addition of Rs. 2 crores as unexplained cash credit u/s 68 of the Act. 12. The entire addition is based upon the statement of Shri Devi Das Tikamdas Chattani. The Assessing Officer was of the firm belief that the assessee is one of the entities who has received credits amounting to Rs. 2 crores and is one of the beneficiaries of accommodation entries from M/s Index Securities and Research Pvt Ltd. According to the Assessing Officer, the assessee has routed its unexplained income through M/s Index Securities and Research Pvt Ltd. While making additions, the Assessing Officer drew support from the statement of Shri Vinod Kumar Taneja and Shri Chanchal Taneja who are directors of M/s Index Securities and Research Pvt Ltd. 13. According to the Assessing Officer, both the directors did not have any knowledge about the financials of M/s Index Securities and Research Pvt Ltd. The Assessing Officer observed that M/s Index Securities and Research Pvt Ltd is not doing any business activity in reality and is merely a paper entity. 14. As mentioned elsewhere, the assessee has furnished complete details of M/s Index Securities and Research P....
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....capacity of the company M/s Index Securities and Research Pvt Ltd. 22. These direct and clinching evidences cannot be brushed aside lightly. The entire additions have been made on surmises and assumptions revolving around the statement of one Shri Devi Das Tikamdas Chattani ignoring the fact that the director of M/s Index Securities and Research Pvt Ltd alongwith major share holder Shri Sant Lal Aggarwal appeared before the Assessing Officer. Financials were available with the Assessing Officer. The Assessing Officer/CIT(A) should not have discarded the evidences. In our considered opinion, the assessee has successfully discharged the onus cast upon it u/s 68 of the Act. We, accordingly, do not find any merit in the addition of Rs. 2 crores and the same is hereby deleted. 23. Addition of Rs. 5,40,000/- u/s 69C is directly related to the loan amount of Rs. 2 crores as the same is interest paid by the assessee to the company and the same is also directed to be deleted. 24. Before closing, it can be seen from the confirmation exhibited elsewhere that the loan was taken on 11.09.2009 and within three months, the loan was repaid. All the transactions have been done through bank....
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.... "From above it is clear that M/s. Shagun Jewellers has had transactions with M/s Index Securities & Research Put Ltd which was a conduit company managed by Mr.Santlal Aggarwal who has further acted on behalf of Sh. Asharam Bapu. Hence, it cannot be ruled out that cash loan were received by the assessee from Santlal Aggarwal. Moreover, the seized material retrieved , clearly indicates that the assessee company has paid Rs. 1,55,16,090/- in cash on account of interest on such cash loan." 29. Considering the facts of the case in hand, in the light of statement of Shri Sant Lal Aggarwal, we do not find any merit in the impugned addition and the same is directed to be deleted. Accordingly, Ground Nos. 4 and 5 are allowed. 30. Ground No. 7 relates to levy of interest u/s 234B of the Act. Levy of interest is mandatory, though consequential. The Assessing Officer is directed to recompute interest as per provisions of law. 31. In the result, the appeal of the assessee in ITA No. 9890/DEL/2019 is partly allowed. The order is pronounced in the open court on 16.06.2020. ============= Document 1 To SHAGUN JEWELLERS PVT. LTD. Dear Sir/Madam, From: INDEX SECURITIES &....