TaxTMI 
TaxTMI 
2024 (5) TMI 783
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....ds before us: "1) The assessment order passed u/s. 143(3) by the ld. Assessing Officer is without jurisdiction, invalid and bad in law and in violation of the principles of natural justice 2) The ld. Assessing Officer erred in facts and in law in making addition of Rs. 30,00,000/- by treating the unsecured loans received from various parties as unexplained cash credit u/s. 68 of the Act on his own suspicion, surmises and conjectures which is devoid of any adverse material and without appreciating the explanations and evidences placed on record. 3) The ld. Assessing Officer erred in facts and in law in making disallowance of interest expenses on the above loans aggregating to Rs. 3,56,122/- u/s. 37 of the Act on hi....
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.... the assessee from 3 parties as under: - Sr. No. NAME PAN Address Status of the summons issued Loan amount involved as per the Investigation Wing (in Rs. ) 1 Hardik A Dave AMTPD3611K 480/15, Namrath Co-op Housing Society, Mumbai, Motilalnagar Shastri Nagar, Goregaon (W), Maharashtra 400104 Returned unserved 22,78,137/- 2 Hetal Hardik Shah BVFPM1810D 32/2 Jawahar Nagar, Goregaon (W), Mumbai 400104 Unserved 3. Kamlesh D. Shah AFDPS6605R G/2, AMRUT APARTMENT, DAMUBHAI COLONY, VASNA Road, Paldi, Ahmedabad, Gujarat 380007 No reply received 10,00,000/- 3. During the course of assessment proceedings the Assessing Officer (AO) has received information from Hardik A Da....
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....amlesh D. Shah was not having creditworthiness to advance a loan of Rs. 10 lakhs. The AO also stated that the total income for AY 2018-19 of Shri Kamlesh D. Shah was Rs. 9,68,020/- only and he had a few unproved liabilities and therefore he was not satisfied with the creditworthiness of the party. Therefore, the amount of loan of Rs. 30 lakhs received from Hardik A. Dave, Hetal Hardik Shah and Kamlesh D. Shah were treated as unexplained cash credit and added to the total income of the assessee for the year under consideration u/s. 68 of the Act. 4. The assessee appealed before the CIT(A). The ld. CIT(A) dismissed the appeal of the assessee. 5. During the course of appellate proceedings before us, the ld. counsel for the assessee submi....
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....as not proved. After perusal of the material on record we find that the assessee has obtained loan amount of Rs. 10 lakhs each from the three lenders, i.e. Shri Hardik A. Dave, Hetal Hardik Shah and Kamlesh D. Shah as discussed above in this order. Further, on perusal of material on record we find that during the course of assessment proceedings copies of loan confirmation letters duly singed by the lenders confirming the acceptance of repayment of loan were filed. The copy of ITR acknowledgements of the lenders along with the Balance Sheet and P&L Account were also filed. Before the AO copies of the bank statements of the lenders reflecting loan amount given to the assessee were also filed. In the statement recorded u/s. 136(6) of the Act ....