2022 (11) TMI 13

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....referred to as ld. AO). 2. At the outset, I find that there is a delay in filing of appeal by one day by the assessee. I have gone through the condonation petition and I am convinced with the reasons adduced thereon. Hence, the delay in filing of appeal is hereby condoned and appeal is admitted for adjudication. 3. Ground No. 1 raised by the assessee challenging the validity of reassessment was stated to be not pressed by ld.AR at the time of hearing. The same is reckoned as a statement made from the Bar and hence, dismissed as not pressed. 4. The Ground Nos. 2-5 raised by the assessee for challenging the addition made u/s.68 of the Act in respect of unsecured loan received by the assessee from M/s. Kunal Gems in the sum of Rs. 21,00,000....

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.... borrowed by him. This interest of Rs. 15,016/- is claimed as deduction by the assessee in the return of income. This interest of Rs. 15,016/- is included in the total interest claim made by the assessee at Rs. 30,424/- . For the sake of convenience, the breakup of interest claimed by the assessee in the return amounting to Rs. 30,424/- is given below: Name of Party Interest amount Rs. Santogen Textiles Mills Ltd. 3,945/- Raman R. Jain 2,860/- Kunal Gems 15,016/- Neeta Samant 8,603/- 6. The ld.AO thereafter issued notice u/s. 133(6) of the Act on 16/07/2014 to M/s. Kunal Gems. The said notice returned unserved. Thereafter vide order sheet noting dated 5/08/2014, the assessee was asked to prove the genuineness of transaction with ....

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....sessee has borrowed 31,00,000/- from M/s. Kunal Gems as under:- Date Amount 20/02/2007 10,00,000/- 01/03/2007 21,00,000/- 8. I find that the revenue has accepted the receipt of loan of Rs. 10,00,000/- on 22/02/2007 from M/s. Kunal Gems as genuine. There is absolutely no reason to disbelieve the next loan transaction of Rs. 21,00,000/- from the same party. The entire loan has been repaid by the assessee in A.Y.2011-12. The search in the case of Pravin Jain happened in Oct. 2013 wherein it transpired that he was engaged in providing accommodation entries through various entities and one such entity was M/s. Kunal Gems. The transaction of receipt of loan and repayment of loan had happened prior to the search action in the case of Pravin....