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TaxTMI 
TaxTMI 
TaxTMI 
2023 (7) TMI 1433
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....ncome declaring total income at Rs. nil. Later, the return was selected for scrutiny under CASS. The AO noted that he received information from the DGIT(Inv.), Mumbai that Shri Rajendra Jain, Shri Sanjay Choudhary, Shri Dharmichand Jain [alleged entry operators] and their group entities are providing accommodation entries inter-alia in the nature of unsecured loans and that assessee is also a beneficiary of such activity. According to the AO, the assessee had shown to have received unsecured loans to the tune of Rs. 50 Lakhs from M/s. Nazar Impex Pvt. Ltd. (hereinafter "M/s. Nazar") which according to AO was operated by these entry operators (supra). So, the AO confronted, the assessee to prove the un-secured loan from M/s. Nazar.....
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....oaded from Registrar of Company website (refer page 32 PB) which shows that M/s. Nazar Impex Pvt Ltd had Registration No. 164655 which was shown to be functioning from the address given therein; and that two director of this entity are Shri Sanjay Choudhary and Shri Hiralal Parasmal Nahar who are directors from inception of incorporation of M/s. Nazar from 16.09.2006 onwards; and that last AGM was held 30.09.2022; and had filed balance-sheet as on 31.03.2022 before the Registrar of companies. The assessee had filed also the ITR acknowledgment (return filed by the lender company M/s. Nazar refer page no. 10 of PB and copy of the PAN Card of the lender is also found at page no. 11). In the light of the aforesaid documents, the identity o....
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....lenders profit got reduced. He also drew our attention to the page no. 21 of PB wherein the cash and bank balances of M/s. Nazar Impex Pvt Ltd is reflected which shows that it had cash and bank balance of Rs.2,05,66,388/- [more than Rs two crores] and the fact that it has given loan and advances to the tune of Rs. 11,53,44,123/- as on 31.03.2013. And it was pointed out that loans & advances given by the lender company as on 31.03.2012 was to the tune of Rs. 13,73,03,854/- which got reduced to Rs. 11,53,42,123/- as on 31.03.2013 which means lender had Rs. 2,19,61,731/- in its hand to give Rs. 50 Lakhs to assessee. Therefore, according to Ld. AR, the lender M/s. Nazar had enough money to advance Rs. 50 Lakhs to t....
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....ee (statement recorded by survey team) has been retracted. It is trite law that survey statement cannot be the sole basis for drawing adverse inference against the assessee as held in the case of Khader Khan Vs. CIT (352 ITR 480) (SC) wherein it was held by the Hon'ble Apex Court that section 133A of the Act does not empower any income-tax authorities to examine any person on oath, hence any such statement does not have any evidentiary value and any admission made during survey cannot by itself be made the basis for addition. Therefore, the reliance placed by AO on retracted survey statement cannot be accepted to draw adverse inference against the assessee. As noted (supra) since the assessee had discharged the burden of proof to prove the ....
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....ute as to the identity of the creditor. There is also no dispute about the genuineness of the transaction. That apart, the creditor has explained as to how the credit was given to the assessee. Thus assessee had discharged the onus which was on him as per the requirement of section 68 of the Act. What the Assessing Officer held was that sources of the source were suspect i.e., he suspected the two sources Shri Rajendra Bahadur Singh and Smt. Sarojini Thakur of the source Smt. Savitri Thakur. 17. In view of discharge of burden by the assessee, burden shifted to the revenue; but revenue could not prove or bring any material to impeach the source of the credit. Though Mr. Walve, learned standing counsel, has pointed out that the creditor ha....