TaxTMI 
TaxTMI 
2018 (5) TMI 2129
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....the I.T. Act, on account of unexplained cash credit as the assessee failed to prove the identity and creditworthiness of the lender." (ii) "On the facts and in the circumstances of the case and in law, the Ld CIT(A) erred in deleting the addition u/s 68 of the I.T. Act, on account of unexplained cash credit despite the fact that the party from whom the alleged loan was received by the assessee was listed as hawala entry provider who indulged in providing accommodation entry of unsecured loans and related to Bhanwarlal Jain." (iii) "On the facts and in the circumstances of the case, the finding of the Ld CIT(A) that the AO has only discussed the facts of Bhanwarlal Jain group and the AO has not appreciated the fact that he ....
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....ases namely M/s Navkar Diamonds. The Assessing Officer asked the assessee to show cause as to why loan taken from M/s Navkar Diamonds should not be disallowed and added to the total income. As per the assessment order the assessee filed his reply along with the bank statement, ITR and confirmation of the loan provider. The Assessing Officer however, discussed in detail the modus operandi of giving accommodation entries employed by the Bhanwarlal Group of cases. The Assessing Officer also recorded statement of Mr. Nitesh Hedpara, husband of the assessee u/s 131 of the Act. On the basis of the report of the Investigation Wing regarding the modus operandi employed by Bhanwarlal Jain Group of cases and on the basis of statement of the husband o....
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.... seen that the AO had issued summons 131 of the Act to the husband of the appellant who was authorized to be sent before the AO. It is seen from the assessment order that the husband of the appellant has clearly confirmed in the statement recorded u/s 131 of the Act that the appellant had taken loan from M/s Navkar Diamonds. It was also clearly stated in the statement that interest has been paid against the loan. The AO had asked the appellant to produce the person who had arranged this loan as well as the partners of M/s Ankita Exports. It is the contention of the AO that the appellant failed to produce the parties before him. But the appellant cannot be reasonably expected to force the creditor to appear before the AO. In this case, the l....
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....nsaction. 3.7 Recently the Hon'ble Bombay High Court has passed an order in WP No. 167 of 2015 dated 15.04.2015 in the case of M/s Rushabh Enterprises Vs ACIT 24(3) and Ors. In this case also, the assessee had taken loan from concerns related with Bhanwarlal Jain group of cases. In its order the Hon'ble Bombay High Court in addition to deciding the legal validity of reopening of assessment also discussed the facts of the case. The Hon'ble Bombay High Court in para 8 Of its order Stated '*......according to her (AO) the revenue has received information from the DGIT (Inv) that the assessee has taken unsecured loans from the above parties by way of unaccounted cash/accommodation entries. We are unable to agree since t....