2025 (9) TMI 233

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....al are as under:- "1. On facts and circumstances of the case and in law, whether the CIT (A) has erred in deleting the addition of Rs. 10,75,05,000/-made on the issue of the loans or liabilities as attributed in its books by the assessee to five companies/firms were found fictitious or bogus one. 2. On facts and circumstances of the case and in law, whether the CIT (A) is justified in holding the financial entries attributed to five companies in question/firms by the assessee as genuine while completely ignoring the circumstantial evidences or human probabilities as described and relied on by the Assessing Officer for holding said entries as bogus one or mere accommodation entries or routing of its own funds by the assesse....

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....ans or liabilities. The Ld. Departmental Representative further submitted that the Ld. CIT(A) has not justified in holding that the financial entries attributed to five companies in question/firms by the Assessee as genuine while completely ignoring the circumstantial evidence or human probabilities which have been discussed by the A.O. in detail for holding those entries as bogus ones or mere accommodation entries or rooting of its own funds by the Assessee. Thus the Ld. Departmental Representative sought for allowing the Appeal. 6. Per contra, the Ld. Assessee's Representative relying on the order of the Ld. CIT(A), sought for dismissal of the Appeal of the Department. 7. We have heard both the parties and perused the material a....

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....T(A) after considering the submissions of the parties opined that in case of doubt regarding credit-worthiness of the said lenders, the AO should have reopened the assessment of the Assessment Year in which such loans were received and no action could be taken after three years of receipt of such fund by the assessee from those lenders. It is found that except observing that the lenders have no creditworthiness, the A.O. has failed to bring any evidential proof. Nothing has been brought on record by the A.O. to conclude that such loans are bogus and no investigation has been carried out by the A.O. on the credential of the lenders. The Ld. CIT(A) has specifically observed that, all the Companies status are active in the website of Ministry ....