TaxTMI 
TaxTMI 
2014 (5) TMI 1222
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....reciating the facts of the case and the material brought on record by the AO. (1.1) The Ld. CIT(A)-XVI, Ahmedabad has erred in law and on facts in stating that the statement relied upon by the AO cannot be made for addition without appreciating that the statement of Shri Ramdinesh Sharma recorded on oath during the course of survey proceedings is an extremely important piece of evidence wherein he has categorically stated that he was managing the business, operating the bank accounts, etc. of the parties surveyed from whom the assessee had taken the unsecured loan and that he had given accommodation entry to the assessee in the form of unsecured loans. (1.2) The Ld. CIT(A)-XVI, Ahmedabad has erred in law in and on facts in not appreciat....
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....el was duly reflected in the books of accounts of the assessee and that all the depositors were existing tax payers. The assessee has also paid interest to those depositors and TDS @ 10.2% has also been deducted. Details of the TDS were furnished. An another fact has also been informed to the AO that the loans were repaid in subsequent years through account payee cheques of the City Bank. The assessee has, therefore, pleaded that the primary onus discharged. 2.3 However the AO was not convinced. The AO has noted that a survey u/s.133A was carried out in the case of one Sri Lalit S. Sharma on 31.08.2009. During the course of survey, it was noted that one Sri Ramdinesh Ranjit Sharma was managing the business affairs and bank accounts of the ....
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....o the appellant. And hence the statement relied upon by the AO cannot be made for the addition. The paper on which the AO has relied also does not speak about the loan being bogus or only an arrangement or accommodation entry. In view of this reason, I agree with the appellant and the addition of the loan, as well as disallowance of consequent interest is deleted. These grounds of appeal are allowed." 4. From the side of the Revenue, learned DR has submitted a short paper book containing the statement of Sri Ramdinesh Ranjit Sharma recorded during the course of survey dated 31.08.2009. Learned DR has also furnished the copies of the impounding material during the course of survey dated 31.08.2009. He has informed that as per the impounding....
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....cts of each case, therefore, the issue in hand should not be treated as covered by the aforesaid order of the Respected Tribunal. At the outset, it is worth to note that the view in favour of the assessee was not taken by learned CIT(A) merely on the ground that the cross-examination of the said party was not granted to the assessee. Therefore, the ratio laid down by Hon'ble Supreme Court is not applicable on the present facts of the case. 5. From the side of the respondent-assessee, learned AR, Mr. Vijay Ranjan has placed reliance upon the order of the Tribunal cited supra and pleaded that on identical facts the Tribunal has taken a view in assessee's favour, relevant paragraph 6, 6.1 and 6.2 are reproduced below: "6. We have both the s....
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....hat a statement of one Mr. Sharma was recorded who had stated that the accommodation entries were given to the assessee in the form of unsecured loans. Now the question is that whether that statement was sufficient to invoke the provisions of section 68 of IT Act. First of all, we want to mention that in the case of Paul Mathews and Sons (supra), it was made clear that a statement elicited during the survey operation had no evidentiary value. Secondly, we have also noted that there was no cogent reason assigned by the Revenue Department for rejecting several other corroborative evidences which were filed by the assessee to establish the genuineness of the loans. All those evidences were in corroboration of the said loan transactions and fur....
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....nd direct to delete the addition." 6. We have heard both the sides. We have noted that the main reason of the impugned addition in the hands of the assessee by invoking the provisions of Section 68 was a statement of one Sri Ramdinesh Ranjit Sharma. Undisputedly that statement was recorded during the survey proceedings which were conducted u/s.133A on 31.08.2009 on one Sri Lalit S. Sharma. During the survey proceedings, statement of Sri Ramdinesh Ranjit Sharma was recorded who has given a long list of the parties and informed that the accounts of those parties have been managed and the loan entries were provided by him. In that list, there were names of the five depositors who have advanced loan to the assessee; the amounts as listed above....