TaxTMI 
TaxTMI 
2019 (10) TMI 1565
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....he 'Act'). 2. The grounds of appeal filed by the revenue read as under: 1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.61,50,000/- made u/s 68 of the Income Tax Act. 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the fact that the addition was made on the basis of parallel books maintained by the assessee. 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in admitting additional evidence in contravention of Rule 46A. 3. Briefly stated, the facts are that the assessee filed his return of income for the assessment year (AY) 2009-10 on 25.....
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....wing concluding para of the reasons recorded by the AO would address the present issue "7. Accordingly, the transactions for FY 2008-09 in respect of Shri Sarvajit D. Patel maintained in the unaccounted parallel books in tally accounting software / package maintained by Directors and Promoters of M/s. Ahuja Group reveals On Money/cash sale, accommodation entries, cash loan receipts and miscellaneous cash receipts as under:- Date Dr / CR Particulars Narration Debit Credit 05.07.2008 Cr Entry A/c. Dilip bipin patel cheque for 10L issued fvg Sarvajit Patel from the account of ahuja properties and associates 1000000 01.10.2008 Cr. Entry A/c. Dilip bipin patel cheque for 25L issued ....
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....is received by the assessee and it does not refer to interest receipt, (ii) if loan is received by the assessee from that group, the source has to be explained by them and it does not become assessee's unaccounted income, (iii) in the statements recorded by that group, nowhere the Director of that group has ever referred to the name of the assessee in particular and has not referred to any direct nexus with him, (iv) the presumption is drawn as if all the transactions recorded in the Tally data of that group refers to only the accommodation entries and the assessee is a part of it ; that merely on surmises and presumptions and without any direct nexus, the view is taken against the assessee, (v) there is no entry before the said noting indi....
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....been repaid Rs.23.50 lacs was a cheque issued by Shri Dilip Patel (HUF) and Rs.1.50 lacs from Shri Sarvajit Patel ; again there is no mention of any cash, (iii) DDIT has presumed that out of the amount of Rs.25 lacs, Rs.1.50 lacs is the cash given by Shri Sarvajit Patel which is received back in the form of accommodation entry in the Ahuja Group ; there is absolutely no basis for making such a presumption, (iv) the assessee is showing repayment of Rs.25 lacs by cheques and the DDIT is saying that Rs.1.50 lacs is the cash given to Shri Sarvajit Patel which is received back in the form of accommodation entry; if that be the case, there would be cheque receipt of Rs.1.50 lacs in the Ahuja group but neither the DDIT nor the AO has brought out t....
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.... United 187 ITR 596; Rajshree v. CIT 256 ITR 331; Ashokpal v. CIT 220 ITR 452, 454; CIT v. Metachem 245 ITR 160; CIT v. Shree Gopal 204 ITR 285; MOD Creations P. Ltd. v. ITO 354 ITR 282. In the instant case, the AO has not done even preliminary inquiry to disprove the contentions of the assessee. The AO has failed to disprove the contention of the assessee that (i) the loan taken from Ahuja Group and repaid are genuine and reflected in its books of accounts and there is no cash receipt or cash withdrawal, (ii) Shri Ahuja had nowhere in the statement admitted to having given any accommodation entry to the assessee, (iii) even if Shri Ahuja maintained parallel books, it is of no concern to the assessee who had reflected the loan transac....