TaxTMI 
TaxTMI 
2025 (6) TMI 1126
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "the Act") for the Assessment Year 2013-14. "1. That the order u/s 250(6) dated 29-03-19 of the Learned CIT(A) Gurgaon-1 is erroneous, arbitrary, opposed to law and facts of the case. 2. That the Learned CIT(A) Gurgaon-1 has erred in law as well as on facts confirming the additions of Rs. 16050000/-. Further he has ignored that the said additions of Rs. 16050000/- with opening balance of Rs. 6100000/- totaling Rs. 22150000/- has also been confirmed of the same issue in the case of M/s MPG Business Information System (P) Ltd. Gurgaon vide order dated 29-03-19 in appeal no.-148/16-17 a/year 2013-14 by the same Learned CIT(A) Gurgaon-1, means double addition. Pray for the deletion of said additions of Rs. 16050000/-. 3. That the Learned....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Rs 2.21 crore is also not established. We are therefore of the considered view that the finding of the CIT(A) be endorsed that the transactions pertaining to loans from the VKG were not genuine and only logical explanation is that these were mere accommodation entries given by the VKG to the MPG which were arranged by paying cash to VKG who deposited the cash in his bank account and issued cheques to the MPG claiming it to be interest free loan. We find no hesitation in rejecting the argument of the assessee that since the transaction has been conducted through banking channel, the loan received should be considered as genuine. 33. In the above narrated circumstances, we are of the considered opinion that, notwithstanding the fact that....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... loan entries to bring unaccounted money into banking channels. The Hon'ble Supreme Court and the High Courts have constantly held that such device of loan entries continues to plague the legitimate economy of our country. As seen from the facts narrated above, the transactions herein clearly do not inspire confidence as being genuine and are shrouded in mystery, as to why the creditor VKG, a grain merchant, would lend such huge unsecured, interest free loans - that too without any agreement to an assessee in the business of Information /Software technology. In the absence of the same, as also the fact that there were huge deposit of cash in the bank of VKG, VKG fail the test of creditworthiness and the transactions fail the test of genuine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9;s hands and therefore, making an addition again in hands of assessee would amount to double addition and hence, was not warranted - In case of S, it was proven that source of funds for investment was available with S from an earlier year - Despite scrutiny, no additional income was found except for specified unaccounted income, indicating availability and rotation of funds for investment - Moreover, decision of share applicants to invest in assessee, a profit-making company with promising future prospects, was deemed prudent - Tribunal held that assessee having successfully proved three necessary ingredients i.e., identity, creditworthiness of share applicants and genuineness of transactions as provided under section 68, no interference w....