TaxTMI 
TaxTMI 
2026 (3) TMI 610
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....assessment year 2012-13. 2. In this appeal, the Revenue has raised the following grounds: - "a. On the facts and circumstances of the case and law, the Ld. CIT(A) has erred in deleting the addition made on account of loan taken by the assessee from M/s. Induja Traders Pvt Ltd & M/s Vanquish Investments & Leasing Pvt Ltd., of Rs. 60,00,000/- without appreciating the A.O's findings that even the existence of these companies could not be proved, meaning thereby that they are shell companies. b. On the facts and circumstances of the case and law, the Ld. CIT(A) has erred in holding that the A.O has failed to establish that M/s Indaja Traders Pvt Ltd & M/s Vanquish Investments & Leasing Pvt Ltd. are shell companies notwi....
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....sued on 30/03/2019, and the proceedings under section 147 of the Act were initiated. As per the information received, Mr. Jitendra Salecha in a statement recorded under section 131 of the Act categorically accepted and admitted that the companies, namely M/s Induja Traders Pvt. Ltd and M/s Vanquish Investment and Leasing Pvt. Ltd., which are floated by him, provide accommodation entries in the form of purchase/sales, loans, letter of credit, share premium and expenses. As the assessee, during the year under consideration, had taken unsecured loans totalling Rs. 60 lakh from M/s Induja Traders Pvt. Ltd and M/s Vanquish Investment and Leasing Pvt. Ltd., the assessee was asked to show cause with documentary evidence as to why the said amount s....
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....s cast on it to establish the identity and creditworthiness of the creditors, and the genuineness of the transaction. Accordingly, the learned CIT(A) directed the AO to delete the impugned addition. Being aggrieved, the Revenue is in appeal before us. 7. We have considered the submissions of both sides and perused the material available on record. In the present case, it is an admitted fact that the assessee availed a loan amounting to Rs. 20 lakh from M/s Induja Traders Pvt. Ltd and Rs. 40 lakh from M/s Vanquish Investment and Leasing Pvt. Ltd. As Mr. Jitendra Salecha, in his statement recorded under section 131 of the Act, admitted that the aforementioned companies were floated by him to provide accommodation entries, reassessment proc....
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.... Leasing Pvt. Ltd. was made on 27/10/2017. From the perusal of the confirmation ledger, it is also evident that the assessee even paid interest on these loans from time to time in subsequent years, on which TDS was also deducted. 9. Similar confirmation account in respect of M/s Induja Traders Pvt. Ltd forms part of the paper book on page 46. From the perusal of the said confirmation, it is evident that the assessee availed a loan of Rs. 20 lakh on 31/01/2012. We also find that on 16/03/2015 and 24/07/2015, the assessee again availed a loan of Rs. 4,50,000 and Rs. 15 lakh, respectively. These loans were repaid by the assessee from time to time, along with the payment of interest after deduction of tax, and the last payment to M/s Induja ....
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.... the assessee is bogus or to corroborate the statements recorded by the Investigation Wing. 13. From the perusal of the impugned order, we find that after perusing the documents as placed on record before us by the assessee, the learned CIT(A) noted that these two creditors have sufficient shareholders' fund and sufficient reserves and surplus. However, despite these findings, there is not even a whisper from the Revenue that these accounts are not authentic and do not show the genuine business of these concerns. Therefore, apart from relying on the statement of Mr. Jitendra Salecha, the Revenue has not brought on record any evidence contrary to the claim and documents placed on record on behalf of the assessee. Thus, without going i....