TaxTMI 
TaxTMI 
2025 (11) TMI 984
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.... 250 of the Income-tax Act, 1961 ("the Act" for short), relating to the Assessment Year 2017-18. 2. The Revenue has raised the following grounds of appeal: "1. Whether on facts and circumstances and in law, the Ld. CIT(A) has erred in deleting addition of Rs. 80,94,875/- u/s 69A of the Act without appreciating the facts of the case. 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that the assessee has transacted with M/s. Kasturi Commodities Pvt Ltd, Bhavnagar, through which the assessee has availed accommodation entry?" 3. The brief facts of the case, as culled out from the records, are that the assessee, who is engaged in ship recycling at Alang....
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.... facts of the case are that the appellant filed the return of income on 24/10/2017 declaring returned income at Rs. 90,84,971/-The case of the appellant was reopened under Section 148 vide notice dated 16.04.2021. The reopening of the assessment has been done on the basis of information collected during the course of search in the case of Jignesh Shah Group. A search action was conducted on the said group on 11.09.2018 and information was received that Shri Jignesh Shah was operating a number of companies through which accommodation entries were being provided in the market. It was also reported that one such company, namely, Kasturi Commodities Pvt. Ltd. had provided accommodation entry amounting of Rs. 80,94,875/- to the assessee company ....
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.... that they had given an unsecured loan of Rs. 80,94,875/- to Kasturi Commodities Pvt. Ltd. during the financial year 2016-17. The said payment was made by RTGS on 08/07/2016 & 10/08/2016 and the corresponding entry in the bank statement is also reflected. The assessee has attached the copy of the bank account before the AO. The assessee submitted that the loan amount given to Kasturi Commodities Pvt. Ltd. was returned via RTGS on 12/08/2016 & 24/08/2016. An interest of Rs. 105,417/- was paid on the said loan by Kasturi Commodities Pvt. Ltd. and total TDS of Rs. 10,542/- was deducted by them on the interest amount paid. Therefore, the remittance received in the bank account of the appellant on 12/08/2016 & 24/08/2016 was Rs. 80,94,875/-The A....
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....STANCE of the transaction are quite different, rather to put it more succinctly, they are diametrically opposite. In short, the contention is that the FORM of the transaction is clothed in legality, however the SUBSTANCE or the CONTENT is non genuine i.e. it is an accommodation entry. The AO has made a bland observation that this is a accommodation entry transaction, however, the actual nature of the accommodation or the modus operandi thereof, in this transaction has not been explained or brought on record by the AO. It has simply been stated by the AO that Kasturi Commodities Pvt. Ltd. has been proved to have been engaged in accommodation entries. Such sweeping statement cannot be accepted as evidence. Moreover, in this case, Kasturi Comm....
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....case of loan given by the appellant and received back during the same year along with interest of Rs. 105,417/- which has already been offered to tax. Therefore, the addition made by the AO under Section 69A of Rs. 80,94,875/- is hereby deleted." 5. Aggrieved by the order of the Ld. CIT(A), the Revenue is now in appeal before the Tribunal. 6. Before us, the Ld. DR relied upon the order of the Assessing Officer, whereas the Ld. AR supported the order of the Ld. CIT(A). 7. We have heard both the parties and perused the material available on record. We find that the Ld. CIT(A) has passed a reasoned and detailed order, examining the nature of the transaction in the context of evidences submitted by the assessee. The Assessing Officer h....