TaxTMI 
TaxTMI 
2020 (11) TMI 639
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....A) erred in directing the AO to compute the alleged unaccounted commission expenses incurred on the alleged unaccounted loans resulting in enhancement of income without giving proper notice. 3. Without prejudice to ground no. 1 & 2 above, the Ld. CIT(A) erred in confirming the additions made by the AO in the assessment order despite the fact that the case was selected for scrutiny under CASS and the issue relating to unsecured loan taken by the appellant was not covered under CASS. 4. On the facts and in the circumstances of the appellant's case and in law the Ld. CIT(A) erred to hold that the loans taken by the appellant from 8 lenders during the earlier years remained unexplained by relying on some information/report received from DGIT(lnv.) and the statements obtained from various persons belonging to Bhanwarlal Jain Group despite the fact that the AO did not provide the so-called report/information and the statements and without affording any opportunity of cross examination of those persons whose statements have been relied upon. 5. On the facts and in the circumstances of the appellant's ease and in law the Ld. CIT(A) erred in not independen....
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.... being disallowed as paid on the bogus unsecured loans which are subject to the verification whether the same are genuine or not. In the assessment year 2011-12, the AO accordingly added Rs. 44,95,618/- to the income of the assessee. 6. The Ld. CIT(A) affirmed the same on the ground that the interest paid to various parties related to the Bhanwarlal Jain Group on the accommodation entries of loans and thus justified and addition. 7. After hearing both the parties and perusing the material on record and particularly the decision of the co-ordinate Bench in ITA No.2641, 2480 & 2388/M/2018 A.Y. 2010-11, 2011-12 and 2014-15 (supra), we observe that identical issue has been decided by the co-ordinate bench in assessee own case. In the said decision the co-ordinate Bench, the addition qua the loans borrowed from the entities belonging to Bhanwarlal Jain Group have been ordered to be deleted by observing and holding as under: "15. In this view of the matter and considering the ratio of case laws discussed hereinabove, we are of the considered view that the assessee has discharged initial burden by filing various documents to prove identity, genuineness of transactions and c....
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....isallowance of interest and estimation of commission on such unsecured loans is also needs to be considered in the light of discussions in the preceding paragraphs. Therefore, we are of the considered view that the AO as well as the Ld. CIT(A) was erred in making additions towards interest on unsecured loans and commission on such unsecured loans. Accordingly, we direct the AO to delete the additions made towards disallowance of interest and estimation of commission." 10. Accordingly, following the decision of the coordinate bench, the second ground is allowed. 11. The other grounds raised by the assessee are general in nature and do not require any adjudication. ITA No.3109/M/2019 A.Y. 2013-14 12. The grounds raised by the assessee are as under: "1. On the facts and in the circumstances of the appellant's case and in law the Ld. CIT(A) erred in confirming the addition of Rs. 50,00,000/- made by the AO on account of alleged unexplained cash credit u/s. 68 of the Act. 2. On the facts and in the circumstances of the appellant's case and in law the Ld. CIT(A) erred in confirming the AO's action of disallowing interest amounting to Rs.....
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....cision of co-ordinate Bench in assessee's own case in ITA No.2641, 2480 & 2388/M/2018 A.Y 2010-11, 2011-12 & 2014-15 wherein the issue of raising unsecured loans from group entities of Bhanwarlal Jain Group were held to be genuine as the assessee has duly discharged his onus by filing all the necessary evidences before the AO. 15. The facts in brief are that the assessee during the year raised an unsecured loan of Rs. 50 lakhs from Daksha Diamond an entity belonging to Bhanwarlal Jain Group. During the course of assessment proceedings, the assessee filed loan confirmation, bank statement of the lender, acknowledgement of the ITR, TDS certificate qua the interest paid on the above loan etc., however, AO relying on the report of investigation wing treated these loans as bogus accommodation entries and accordingly added the same to the income of the assessee. 16. In the appellate proceedings, the Ld. CIT(A) affirmed the addition and hence assessee is in appeal before us. 17. After hearing the rival parties and perusing the material on record, particularly the decision of the co-ordinate Bench in ITA No.2641, 2480 & 2388/M/2018 A.Y 2010-11, 2011-12 & 2014- 15, we observe that ....