TaxTMI 
TaxTMI 
2024 (11) TMI 565
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....he return of income was filed declaring income of Rs. 3,36,09,110/- on 26/09/2012. During the course of assessment proceedings, ld. AO on perusal of the balance sheet noted that assessee has taken unsecured loan which has been shown on the liability side received from M/s. Mehul Gems Pvt. Ltd. and M/s. White Stone aggregating to Rs. 1,50,00,000/-. In response to the notice, assessee submitted the details of loans wherein assessee had shown Rs. 50,00,000/- of loan from M/s. Mehul Gems Pvt. Ltd and Rs. 1,00,00,000/- from M/s. White Stone. Further, assessee has also paid interest to M/s. Nice Diamonds of unsecured loan which was availed prior to A.Y.2012-13. Ld. AO noted that these parties were listed by the Investigation Wing who were found to be providing accommodation entries of unsecured loans and bogus purchases to various beneficiaries. He also referred to search conducted by Investigation Wing on Bhanwarlal Jain group of cases on 03/10/2014, wherein it was found that Mr. Bhanwarlal Jain alongwith his families were managing 70 Benami concerns and various entities through which they provide accommodation entry of unsecured loans and bogus purchases. Thereafter, he has referred to....
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....crores payable to sundry creditors. Similarly, the balance sheet of M/s Mehul Gems Pvt. Ltd as on 31/03/2012 shows that the capital is only 1,00,000/- and reserve of Rs 1,06,073/- only. However, loans & advances of Rs 15.21 crores were given. The source was Rs. 17.68 corers payable to sundry creditors. In case of White Stone, the balance sheet as on 31/03/2012 shows that the capital is only 1,22,814/- and loans & advances of Rs 8,42,94,193/- were given. The source was Rs. 26.18 crores payable to sundry creditors. 5. Thus, AO held that the creditworthiness of the parties has not been proved. Thereafter, ld. AO asked to produce the said parties. In response, partner of M/s. White Stone Mr. Ashish Chordiya and Mr. Bhupendra Singh, Proprietor of Nice Diamonds appeared before the AO and their statement on oath was recorded u/s. 131. AO has also reproduced relevant statement of these parties in the assessment order. In response to the various questions, these persons have duly confirmed the loan and also given the details of their business turnover and in the case of M/s. White Stone, Mr. Ashish Chordiya stated that the turnover was more than Rs. 15 Crores and also explained the source ....
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....ion with the Amal Corporation 2. Details of ledger account and ledger account of subsequent payment details 3. Copies of bank statements evidencing the loan payments through banking channels. 4. Copy of affidavit dated 31.03.2015 authenticating the payments made by the firm Apart from the above, one of the partner Mr. Ashish Chordia from M/s. White Stone has also attended before the AO during the course of assessment proceedings and confirmed about the payment of loan. Thus, the assessee discharged its obligations as per 68 of the IT Act. From the material and facts of the case, it is understood that the assessee filed all relevant details which are needed to explain genuineness, creditworthiness and identification of lender EPAR In the case of M/s. Mehul Gems Pvt. Ltd., nobody attended from the company in response to summons during the course of assessment proceedings, but the assessee furnished all relevant details during the course of assessment proceedings. 1 Copy of Return of Income and schedules reflecting transaction with the Amal Corporation. 2. Details of ledger account and ledger account of subsequent payment details. 3. Copies of bank statements evidencing ....
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....3 Copy of reply to Show Cause Notice before Ld. Assessing Officer (AO) along with annexures a. Submission letter b. Details of Mehul Gems Pvt Ltd i. Ledger ii. Bank statement reflecting loan transaction iii. ITR Acknowledgement iv. Audited Financials c. Details of White Stone i. Ledger ii. Bank statement reflecting loan transaction iii. ITR Acknowledgement along with computation of Income iv. Audited Financials d. Details of Nice Diamonds i. Ledger ii. Bank statement reflecting loan transaction iii. ITR Acknowledgement iv. Audited Financials with Tax Audit Report e. Affidavit from White Stone f. Affidavit from Mehul Gems Pvt Ltd g. Affidavit from Nice Diamonds 74-86 87 88 89 90-96 97 98-100 101-103 104-109 110-111 112-113 114 115-126 127-128 129-130 131-133 3 Copy of Ld. CIT(A) Order for AY 12-13 dt. 21.12.2023 134-146 4 Submissions done during Ld. CIT(A) proceedings 147-202 5 Copy of CIT(A) Order for AY 13-14 dt. 21.12.2023 203-220 6 Copy of CIT(A) Order for AY 14-15 dt. 21.12.2023 221-226 7 Copy of Retraction Statem....