TaxTMI 
TaxTMI 
2025 (9) TMI 944
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....nal Faceless Assessment Centre (in short 'the AO) under section 147 r.w.s. 144B of the Income Tax Act, 1961 (in short, 'the Act') pertains to Assessment Year-2015-16, challenging the confirmation of addition on Rs. 30 lakhs on account of unsecured loan invoking provisions of section 68 of the Act without giving any opportunity to rebut to cross examine the statement recorded of the third party being the basis of the addition. 2. After hearing both the sides, we find that the Assessing Officer has discussed the modus operandi alleging accommodation entries taken although he did not dispute the fact as regards to the identity of the lender, copy of the financial statement and tax audit report, details of the loan given, and copy of the ret....
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....r the transactions were mainly with SAR Capital, Mayfair Capital P Ltd. and with these two concerns alone there were transactions of receipt and debit by the Jindal Financial Services P Ltd. Further, the particular page in the bank account alone has been enclosed as part of evidence. Since this fact alone could not be sufficient to prove the genuineness of the transaction, kind attention is drawn to the decision of the Hon'ble ITAT G Bench in the case of M/s Shivji Garments P Ltd. Vs. DCIT, Central Circle 26, New Delhi in 9639 t 9642/Del/2019 for Asst Years 2013-14 to 2016-17 on the appeal filed against the order passed under Sec. 153C by the Assessing Officer, wherein it was held that the Shivji Garments P Lt was used as a conduit and ....
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.... only acted as a conduit as has been observed by the AO in the assessment order. 6.3. I have considered the facts and circumstances of the case, submission of the appellant and perused the order of the AO. The AO in the assessment order has claimed to have identified the names of beneficiaries and already disseminated the information to the assessing officers of the beneficiaries. Accordingly, the credits received by the appellant cannot be treated as unexplained credit in its hands since, the said transactions are mere arrangement of funds/routing of unaccounted income of the beneficiaries to whom the said funds were transferred through the bank of the appellant company in lieu of commission. In this regard, on perusal of the bank....
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....ee in order to prove the identity, creditworthiness of the lender and the genuineness of the transaction without controverting. It was further contended that NFAC has erred on facts and law in confirming the addition made by the AO, despite the fact that addition having been made based on statement recorded at the back of the assessee without giving opportunity to rebut/cross examination. She contended that neither the AO nor ld. CIT(A) pointed out any defect or discrepancy in the alleged loan transactions and the submissions furnished by the assessee. She further contended that there was no cash deposit, and the assessee was never asked to produce either the complete bank details or Jindal Saxena or even questioned the assessee that allege....
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....nancial Services P Ltd. and hold it in turn a conduit without controverting the material evidence furnished by the assessee on record which cannot be approved. The decision of the Hon'ble ITAT G Bench in the case of M/s Shivji Garments P Ltd. Vs. DCIT, Central Circle 26, New Delhi in 9639 t 9642/Del/2019 for Asst Years 2013-14 to 2016-17 relied by the CIT(A) is distinguishable on peculiar facts of the present case. 8. Admittedly assessee had furnished necessary details such as the copy of the bank account, financial statement, copy of tax audit report, copy of confirmation in the ledger account, copy of return of income and all the details to prove the genuineness of the transaction before the lower authorities. Further, the transact....