2021 (10) TMI 1436

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....tline Multitrade Pvt Ltd. The loan was taken through banking transaction in January, 2012 and the same was repaid to M/s. Fastline Multitrade Pvt Ltd. by way of cheque in March, 2013. On repayment of loan the account of the assessee was debited on 26/03/2013. In support of his contention the assessee placed on record bank statement of HDFC Bank. The assessee further submitted that during the course of assessment proceedings the Assessing Officer made enquiries regarding the loan transaction from M/s. Fastline Multitrade Pvt Ltd. the assessee had written to the aforesaid company. The said company vide letter dated 05/03/2015 confirmed genuineness of the transaction. The assessee placed on record a copy of the reply dated 05/03/2015 from M/s.....

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.... bank statement of the lender indicates that the entity is a shell entity. In view of the above contention raised by the assessee, please record my submission point wise along with the citation and gist of the case laws on which I am placing reliance:- * Loan is raised and subsequently repaid through Banking Channel The payment through banking channel is not sacrosanct in such time of transactions where circumstantial evidences are against the assessee. Reliance is placed on the decision of ITAT, Jaipur in case of M/s Kanchwala Gems Vs. JCIT ITA No. '134/JP/2002 dated 10/12/2003 affirmed by the Hon'ble Supreme Court in the case of M/s Kanchwala Gems Vs JCIT(2006) 206 CTR(SC) 585, 288 ITR 10(SC) ha....

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....an Kumar M. Sanghvi vs. ITO,ITA No.2447/Ahd/2016 dated 17/05/2017 2) United Metal and Wires Ltd. vs. CIT[2019] ITA No.7336/Mum/2016 dated 01/03/2019. 3) DCIT vs. Smt Phoolwati Devi [2009] I314 ITR AT 1(Delhi) 4) Pr. CIT(Central)-1 vs. NRA Iron & Steel Pvt. Ltd. Civil Appeal No of 2019 [Arising out of SLP(Civil No.29855 of 2018) Supreme Court decision dated 05th March 2019. 4. Submissions made by rival sides heard, orders of authorities below examined. An addition of Rs.20,00,000/- has been made by the Assessing Officer in the hands of the assessee stating it to be a bogus loan transaction. A perusal of the assessment order reveals that the Assessing Officer has suspected the transaction to be bogus primarily fo....