TaxTMI 
TaxTMI 
2025 (3) TMI 1974
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....essment Centre, Delhi, u/s. 143(3) r.w.s.147 of the Income-tax Act (hereinafter referred to as the "Act"), dated 26.12.2019 for Assessment Year 2012-13. 2. In all the four grounds raised by the Revenue, the issue contested by it is in respect of deletion of addition made u/s. 68 of Rs. 2.50 crores in respect of unsecured loans availed by the assessee which is alleged to be accommodation entry. 3. Brief facts of the case are that, assessee is engaged in the business of manufacturing of chemical products namely Saccharin, Sodium Saccharin, etc. It filed its return of income on 31.03.2014, reporting total income at Rs. 7,20,389/-. Re-assessment proceedings in the case were initiated by issuing notice u/s. 148, dated 10.03.2019 on the bas....
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....ssessment Year 2016-17, details of which were placed on record which establishes the genuineness of the transaction as well as explains the source of such funds. Ld. Assessing Officer also issued notices u/s. 133(6) to the three lender companies seeking details of the transaction undertaken by them for furnishing relevant documentary evidences. In this respect, Ld. Assessing Officer noted in para -4.6 of the impugned order that he received physical compliances from all the three lender companies by post which were carefully considered and placed on record. Ld. Assessing Officer has also taken note of fact of repayment of the loans taken by the assessee to all the three lender companies. Thus, after considering the report of DCIT, reply of t....
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.... with similar contra transaction in cash. He, further noted that ld. Assessing Officer could not establish that there was any direct or indirect link of assessee's own money flowing out and then again being received back in the form of unsecured loans except for placing reliance on the general statement of Shri Praveen Agarwal, recorded in the course of his search. 3.3 Relevant observations and findings arrived at by ld. CIT(A), in this respect, is reproduced below: "9.13 Now coming to the facts of the case, it is observed that the confirmations, ITRs, audited financial statements and bank statements of the relevant parties Esquire Enclave Pvt Ltd, Everlike Projects Pvt Ltd and Kingfisher Properties Pvt Ltd have already been fil....
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.... the form of unsecured loans except relying on the general statement of Sh. Pravin Agarwal. The Hon'ble Mumbai ITAT in the case of Ashok Kumar Banthia v ITO (ITA No. 2192/Mum/2018 order dated 13.03.2019) in a similar case, where the assessee had received entries from a similar entry operator group i.e the Pravin Jain Group, had granted relief to the relevant assessee where the assessee had discharged the initial onus cast upon it u/s 68 to prove the identity, genuineness and creditworthiness of the relevant transactions. Similarly, relief has been granted by the Hon'ble Mumbai ITAT in the case of DCIT v Baiagra Builders Pvt Ltd (ITA Nos. 4691 & 4692/Mum/2015 order dated 14.09.2017) wherein the assessee had taken entries from Pravin ....
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....basis for making the addition by the ld. Assessing Officer whereby, assessee is alleged to be a beneficiary of taking accommodation entry in the form of unsecured loan from companies controlled and managed by Shri Praveen Agarwal. 4.1. From the perusal of the paper book and documents placed therein, relevant documentary evidences to establish the identity and credit worthiness of the lender companies and genuineness of the transaction are placed on record. We also take note of the elaborate and well reasoned findings arrived at by ld. CIT(A) after taking into consideration, details and documents furnished by the assessee as well as those collected by assessee for which relevant extracts are already provided above. We also note that ld. C....
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....04.2013 to specify that the assessee needs to prove the source of source only in case of share capital. In case of other receipts, there were no such provisions until Assessment Year 2022-23, after which the amendment has been made prospectively from Assessment Year 2023-24 to also include loan or borrowing. Accordingly, for the year under consideration, there was no requirement to prove the source of source of the party from whom unsecured loan had been received. 5. Considering the facts on record and detailed discussion made above and the findings arrived at by ld. CIT(A), we find that assessee has duly discharged the onus cast upon it, u/s.68 of the Act, to prove identity and credit worthiness of the lender companies and genuineness o....