2019 (6) TMI 1690

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....he learned CIT(A) as made by the AO u/s 68 of the Act on account of unsecured loan from persons/entities engaged in providing accommodation entry. 3. The facts in brief are that the case of the assessee was re-opened u/s. 147 of the Act by issue of notice u/s. 148 after the AO received information from the DGIT (Inv), Mumbai, that the assessee is a beneficiary of bogus loan entries from Shri Pravin Kumar Jain Group companies/entities. During the year, the AO observed that the assessee had taken bogus loans to the extent of Rs. 65 lacs from Pravin Kumar Jain Group concerns comprising of Rs. 20 lacs from M/s. M/s. Olive Overseas Pvt. Ltd., Rs. 20 lacs from Jasoda Export, Rs. 10 lacs from Mohit International and Rs. 15 lacs from Ryan Internat....

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....ecording. The learned AR therefore, submitted that the issue may be decided in favour of the assessee by following the decision of co-ordinate Bench by dismissing the appeal of the Revenue. 6. The learned DR, on the other hand, relied on the grounds of appeal and the assessment order. 7. After hearing both the parties and on perusal of the order of the Coordinate Bench in ITA Nos. 5886 & 587/Mum/2017 (supra), we observe the identical issue has been decided in favour of the assessee in the above appeals. The operative part of the said order is reproduced as under: "8. We have heard the rival submissions of both the parties and perused the material on record including the written submissions filed by the Ld. A.R. and the Ld. D.R. along wi....

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....he said circumstances qua the unsecured loans raised by the assessee. The AO has merely relied on the statement of Shri Dinesh Jain who is director in the assessee company by ignoring the fact that the statement given by the said director stands retracted after three days from the recording of the same. After perusing the order of Ld. CIT(A) who has dealt with the facts in great detail and also discussed the various decisions wherein it has been held that no such addition can be made under section 68 where the assessee has filed all the necessary evidences before the AO when AO has not made any further enquiry to to prove otherwise. The allegation of the AO that assessee has not proved identity and creditworthiness of the lenders and genuin....