TaxTMI 
TaxTMI 
2022 (9) TMI 770
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....genuineness, identity, creditworthiness of the transaction. 3. On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in confirming and treating the genuine loan of Rs2500000/- from M/s. Navkar Diamond as alleged accommodation entry without appreciating the fact that the appellant had received the unsecured loan through banking channel and during the course of assessment proceeding the appellant has submitted all the details in respect of identity creditworthiness and genuineness of the loan. 4. On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in confirming the addition made by the Ld. Assessing Officer without considering the fact that such addition of genuine loan is made solely on the basis of the findings of Investigation Wing Mumbai in the case of Bhanwarlal Jain group with whom the appellant had no transaction. 5. On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in confirming the addition made by the Ld. Assessing Officer without considering the fact that such addition is made by Ld. A.O without any corroborative evidence to prove that the appellant has paid the cash against the....
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....ovided the list of companies in which they are director and list of companies which are managed and controlled by them. The name of M/s Navkar Diamonds appeared in the list of companies controlled, managed and operated by Shri Bhanwarlal Jain, with which the assessee was engaged in financial transaction. Accordingly, notice under section 148 of the Act was issued on 04/02/2015, after recording reasons. During the course of reassessment proceedings, independent enquiries have been carried out by issuance of notice under section 133(6) of the Act to M/s Navkar Diamonds to ascertain the genuineness and creditworthiness of the alleged transaction. However, M/s Navkar Diamonds did not filed the details, except copy of bank statement and acknowledgment return. The Assessing Officer vide order dated 23/03/2016 passed under section 143(3) r/w section 147 of the Act came to the conclusion that onus lies on the assessee to prove the genuineness and creditworthiness of all the transactions to the satisfaction of the Assessing Officer. In the absence of any material being brought on record by the assessee to controvert the findings recorded by investigation wing of the income tax department, t....
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....he satisfaction of the Assessing Officer, which has not been discharged, as the assessee has failed to produce the party from whom the transaction were made. Since the primary facts are in the knowledge at the assessee, it is the assessee's duty in provide the correct address and contact modes of the alleged transacting party Mere filing of confirmation etc, in support of transactions and payment routed through account payee cheques cannot be conclusive in a case where genuineness and creditworthiness of the transactions are in doubt Payment by account payee cheque is not sacrosanct and is not sufficient to establish the genuineness of the transitions. Thus, the undisputed fact is that the transactions claimed to have been made from the above party remained unverified. The genuineness of the transactions could be decided on the basis of primary facts on records and the revenue is not required to lead a clinching evidence to prove that the purchases are bogus, it is well settled law that strict rules of evident do not apply to Income-tax Act and the real test with regard to the genuineness is "preponderance of probabilities" and not "beyond reasonable doubt" 4.5 The facts ment....
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....ished by M/s Navkar Diamonds, except copy of bank statement and acknowledgment return, the Assessing Officer asked the assessee to produce the party along with complete books of accounts, sale bills, purchase bills, bank statements for the year under consideration. However, as noted by the Assessing Officer the assessee failed to do so despite enough opportunities been sought. During the hearing before us, bank statement of M/s Navkar Diamonds, and affidavit of its proprietor, forming part of the paper book, were referred to substantiate the fact that the transaction has undertaken through banking channel. Further, it is the claim of the assessee that the loan which was granted by M/s Navkar Diamonds, was repaid by the assessee along with the interest. In this regard, entries in the aforesaid bank statement were referred. Further, scheduled D to audited financial statement of M/s Navkar Diamonds, was also referred, wherein name of the assessee is appearing in schedule of loans and advances. From the perusal of the balance-sheet of M/s Navkar Diamonds, forming part of the audited financial statements, we find that the said entity has capital of only Rs. 2,11,586.13. Further the comp....