TaxTMI 
TaxTMI 
2025 (11) TMI 639
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....eals for hearing. 03. The issue raised in ground no. 1 is against the order of ld. CIT(A) deleting the addition of Rs. 4,04,50,000/- as made by the ld. AO u/s 68 of the Act in respect of unsecured loans taken during the year. 04. The facts in brief are that a search action was conducted on the health care group on 05.02.2021 and the assessee was one of the related entities. The assessee filed the return of income u/s 139(1) of the Act on 19.11.2019, declaring total income at Rs. nil. The assessee was issued notice u/s 153A of the Act on 28.10.2021, which was not complied with by filing any return of income. Thereafter the statutory notices along with questionnaire were duly issued and served upon the assessee and also replied by filing the requisite evidences/ details/ documents as asked by the ld. Assessing Officer. The ld. AO observed that during the year the assessee has taken unsecured loans from Asha apartments Pvt Ltd. amounting to Rs. 4,04,50,000/- on which interest of Rs. 31,27,420/- was paid during the year. The assessee was accordingly requested to produce the director of the lender company for examination and verification, however, the assessee failed to do so and ....
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....evidences to substantiate that the principal amount of the loan was repaid in full during the F.Y: 2023-24. The appellant in its submissions has also argued that the lender had sufficient own funds to advance unsecured loans to the assessee and in support of the same the appellant has adduced the audited accounts of the lender company for the AY: 2019-20. From the audited accounts the following details of the net own funds of the lender and the loans advanced by them were observed: Name of the lender Net Worth/ Capital Loan advanced % of net worth Asha Apartments (P) Ltd 24,17,31,684 4,04,50,000/- 16.74% The appellant has also adduced evidences before the AO to substantiate that the loans were taken through banking channels and was repaid in full through banking channels as well. The AO has nowhere brought on record that the lender company had not shown such interest income in its return of income for the AY: 2019-20. The AO has also not been able to put forward any evidence such as fund flow statement or cash flow statement to lend credence to his claim that it was the appellant`s own unaccounted funds which was being brought back through ....
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....dgers showing receipt and refund of loans alongwith TDS details in respect of each of the lenders, which are filed in the paper book from pages no. 11 to 718. We also note that the AO issued notices under section 133(6) of the Act to twelve parties which could only be served to six parties and remaining six cases, the notices were returned back unserved. We note that the six parties, to whom notices were served, have duly responded and replied with all the requisite details. The ld. Assessing Officer has made the addition on the basis of the statements of three persons, namely Shri Shri Abhishek Chokhani, Shri Sanjay Kumar Drolia and Shri Praveen Kumar Agarwal and stated that they have arranged the loans from four parties. The ld. Assessing Officer has disbelieved the transactions on the basis of the statements of three persons, who were stated to have arranged loans four parties mentioned at serial nos. 1, 2 &6 and 11 and reached a generalized conclusion even on the remaining parties. The ld. CIT(Appeals) has simply dismissed the appeal of the assessee by passing a very cryptic and non-speaking order. Now the issue before us is whether the assessee has duly discharged his burden b....
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....f the giver of the loan were not established. Accordingly, the assessing officer made addition under section 68 of the Act. 3.1 While the assessing officer dealt with unexplained cash credit from the M/s. Satya Retail Private Limited and from M/s. J.A Infracon Private Limited in his order in paras 5.1 and 5.2 respectively, the Commissioner of Income-tax in the appeal preferred by assessee found on facts and the material before it that the said two cash creditors had been holding there identity, creditworthiness and genuineness in respect of the loan transactions. 3.2 The appellate authority observed that, "In this regard, it has been noticed that ledger accounts and confirmations of the aforesaid two parties have been provided by the appellant to the AO in the assessment proceedings. Thereafter, the AO also carried out the independent inquiries u/s. 133(6) of the I.T. Act and in compliance thereto both the companies have submitted the requisite information." 3.3 The information supplied by assessee was duly noticed by appellate authority and facts in that regard were recorded also to arrive at a finding that the unsecured loans to the aforesaid parties ha....
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.... based on the documentary evidence, the credit entries cannot be looked into isolation after ignoring the debit entries despite the debit entries were carried out in the later years. Thus, in the given facts and circumstances, were hold that there is no infirmity in the order of the Ld. CIT-A. " 7. For the reasons recorded above, no question of law muchless substantial questions arises in this appeal. It stands meritless and accordingly dismissed. "In the instant case also, besides submitting the relevant documents to establish the necessary documents to establish the identity, creditworthiness of all the lender as well as the genuineness of the transactions, the loans were also repaid by the assessee in respect of M/s Asha Apartments Pvt. Ltd.in the subsequent years and therefore the assessee cannot be said to be the beneficiary of the loan received. Owing to the above discussion, and the judgements discussed above, the action of the AO intreating the unsecured loans to the tune of Rs. 4,04,50,000/- as bogus cannot be sustained and stands deleted. This ground is therefore allowed." 06. The ld. DR relied on the decision of Hon'ble Delhi High Court ....
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.... his net worth at page no.58. The ld. CIT(A) noted that the loan was received through banking channel and repaid full through banking channel as well. Further, the ld. CIT(A) noted that the ld. AO has not given any finding qua the appellant own funds being brought back through lender company in the garb of unsecured loans. The ld. CIT(A) noted that the statement relied upon by the ld. AO of Manohar Lal Nangalia was recorded on 5 year prior to the date of transaction and cannot be related to the instant transactions of unsecured loan during the F.Y. 2018-19. The ld. CIT(A) further noted that the assessee has discharged its onus by furnishing all the details/ evidences qua the said lender which then shifts to the Revenue to carry out further enquiries. The ld. CIT(A) also relied on the decision of the co-ordinate bench in case of Iris Clothings Ltd vs DCIT for AY: 2013-14 in ITA No.1015/Kol/2023 and the decision of the Hon'ble Calcutta High Court in case of PCIT Vs. Sreeleathers [2022] 143 taxmann.com 435 (Calcutta), wherein it has been held that where the assessee filed all the evidences qua the lenders and AO has not carried out any further investigation, the addition cannot be....