TaxTMI 
TaxTMI 
2022 (7) TMI 586
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....of the Act (Commission). 3. The brief facts of the case are that the assessee filed the return of income declaring total income of Rs.28,43,280/-. The AO notes that the assessee is engaged in the activity of Manufacturing Aluminium Roll Bond Evaporator Panel and assessee has shown the income from profit and gains from business and profession. The case was selected for scrutiny. According to the AO, he received an information from the office of Investigation Wing, Mumbai that the assessee has availed the accommodation entry from Bhanwarlal Jain Group who gives accommodation entry. 4. According to the AO the information from the Investigation Wing was that there was a search/survey action conducted in the premises of M/s Bhanwarlal Jain Gro....
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....the assessee and requested to provide the ledger account of M/s Chanvim Engineering (India) Private Limited for A.Y. 2013-14 and A.Y. 2014-15. The DCIT, CC 1(3), Mumbai, vide letter dated 08.03.2016, communicated the information and ledger account. On perusal of the information and documents, the contention of the assessee is found correct. Hence, the scrutiny assessment will be completed for the following financial transactions: - S. No. Name Particulars of Transactions (Financial Year and Amount) 1 Look At Me Retail Pvt. Ltd. 2012-13 1,11,00,000/- 2 Meridiann Jewellery Pvt. Ltd. 2012-13 50,00,000 3 Kothari & Co 2012-13 40,00,000 Total 2,01,00,000 13.2 Therefore by applying the ratios laid down in above cases, the facts ....
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....earch. It is undisputed fact that the loans was received through banking channel and the amount taken as loan was subsequently fully returned back along with interest through banking channels. The corresponding interest amount was offered as income by the lender parties and the department has on its record the trail of the income through TDS deducted and paid. The TDS payment is accepted by the Department which reflects that the interest payment is also accepted by the Department and therefore, the loan transaction cannot be alleged to be accommodation entries. The addition is merely on the basis of general information. There are no specific findings on alleged involvement of the appellant in such accommodation transactions other than a gen....
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....amount of loan. The Ld. CIT(A) also took note of the fact that the assessee in order to prove the loan transactions had submitted before the AO, documents evidencing the entire trail of the transaction, which the AO ignored and has not found any infirmity in the documents produced by the assessee to support the genuineness of the loan. The Ld. CIT(A) noted that AO on the strength of the statement of Shri. Banwarlal Jain recorded during the search has brushed aside the relevant facts that the transaction in question (loan) happened through banking channel and TDS has been duly deducted on it. Further, the Ld. CIT(A) notes that the loans in question was subsequently fully returned back along with interest through banking channels. And that th....