TaxTMI 
TaxTMI 
TaxTMI 
2022 (8) TMI 1286
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....as unlawful, invalid and against the provisions of law. 3. Ld. CIT (A) erred in law and on facts holding genuine loan transaction as an accommodation entry on the basis of statement of third party without affording opportunity of cross examination. 4. Ld. CIT (A) erred in law and on facts confirming addition ignoring the fact that appellant repaid loan vide banking transaction within a short period. 4. Ld. CIT (A) erred in law and on facts confirming addition by relying on decision not applicable to the facts of the appellant company. 5. Levy of interest u/s 234A/ 234B/ 234C & 234D of the Act is not justified. 6. Initiation of penalty proceedings u/s 271(l)(c) of the Act is not justified. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal." 3. The brief facts of the case are that the assessee filed the return of income for assessment year 2009-10 declaring total income at Rs. 47,829/-. Subsequently, the Department was in receipt of information from DGIT (Inv), Mumbai that a search was conducted in the case of Shri Praveen Kumar Jain Group on 01-10-2013, w....
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....he AO further submitted that whether the assesses got the entry in any other bank account or not is not known. The AO has made the addition of Rs. 1,00,00,000/-, and therefore, onus is on the AO to show that Rs. 1,00,00,000/- has been actually received by the appellant. 3.10. It has been established that Shri Praveenkumar Jain is engaged in providing accommodation entry through its various companies including M/s. Nakshatra Business Pvt. Ltd. (M/s. Hema Trading Co. Pvt. Ltd.). The above company is a shell company and Shri Praveenkumar Jain has admitted that he was engaged in providing accommodation entries through its various companies and there was no real business in his companies. The Honourable ITAT, Ahmedabad in the case of Pavarikumar M. Sanghvi Vs. ITO, Wd. 3(1)(2), Baroda [2017] 81 Taxmann.com 308 where the accommodation entry was taken from the group company of Shri Praveen Kumar Jain and has observed as under:- "8. As I proceed to deal with genuineness aspect, it is important to bear in mind the fact that what is genuine and what is not genuine is a matter of perception based on facts of the case visa- vis the ground realities. The facts of the case cannot be consider....
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.... 5 of the paper book, which was the ledger account of M/s Hema Trading Company in the books of the assessee company, wherein the receipt of Rs. 50 lakhs was duly recorded. The learned counsel drew our attention to page 6 of the paper book to show that the sum of Rs. 50 lakhs was received through banking channels. He further drew attention to page 14 of the paper book to show that the confirmation by the party i.e. M/s Hema Trading Company (name, address, permanent account number and confirmation) was duly furnished during the course of appellate proceedings, which were not appreciated. The counsel for the assessee then drew our attention to page 15 of the paper book which is the bank account of the lender to show that the loan was given through banking channels. He then drew attention to page 16 of the paper book i.e. return of income filed by the lender, M/s Hema Trading Company declaring income of Rs. 16.7 lakhs, which demonstrates the ability of the lender to that the aforesaid sum to the assessee company. The counsel for the assessee then drew our attention to page 24 of paper book to the case of ITO v. Pratima Ashar (2017) 107 Taxman.com 135 (Mumbai Tribunal), page 35 paper bo....
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....d accepted repayment of loan in subsequent year, no addition was to be made in current year on account of cash credit. 5.2 We further note that all details regarding the parties in respect of the loan transaction were duly submitted before the Revenue Authorities. The additions are proposed to be made on the basis of statement of by Shri Praveen Kumar Jain who stated that he was engaged in the business of providing accommodation entries in the form of bogus unsecured loans, bogus share application money etc. The Department has made addition on the ground that the assessee company had received a sum of Rs. 1,00,00,000/- from M/s Nakshatra Business Private Limited (Hema trading company Private Limited), which was one of the companies operated by Shri Praveen Kumar Jain Group. However, apparently this figure too was incorrect since the Ld. CIT(Appeals) observed that the assessee had taken loan of Rs. 50 lakhs only and accordingly gave part relief to the assessee. We further note that the Tribunals on various occasions have deleted the additions made in respect of loans taken from the above entities which were later found be repaid back in subsequent years. In the case of Deepak Shah ....
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....fact that summons issued u/s. 131 were not complied with. Learned AR also referred to the decision of the Coordinate Bench in the case of ACIT Vs. Shreedham Builders (ITA No. 5589/Mum/2017 for A.Y. 2012-13), wherein all these three entities have lent money and the Coordinate Bench has taken the view that no addition to be made u/s. 68 of the Act as the assessee has duly discharged burden cast upon it u/s. 68 of the Act. Learned AR therefore prayed before the Bench that the order of learned CIT(A) may be set aside and the Assessing Officer be directed to deleted the addition. 6. Per contra, learned DR relied on the order of learned CIT(A) heavily by submitting that facts revealed during the course of search unequivocally proved that the assessee was beneficiary of hawala racket which was being operated by Shri Pravin Kumar Jain and Associate concerns and he even admitted during the course of statement recorded u/s. 132(4) of the Act that business was not being done but only accommodation entries were provided on commission basis. Under these circumstances, learned DR prayed that the order of learned CIT(A) may be affirmed. 7. We have heard the rival submissions and perused the m....