TaxTMI 
TaxTMI 
2025 (3) TMI 2296
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....ccommodation entries in the form of bogus unsecured loans, bogus share application/premium, bogus bills of Long Term Capital Gains (LTCG)/Short Term Capital Gains (STCG) and bogus bills of purchases routed through the companies managed and controlled by him. On perusal of the information received, it was found by the Assessing Officer (AO) that the Assessee has also made the transaction on account of accommodation entries to the tune of Rs. 48,00,000/- during the assessment year under consideration from the following concerns operated by Mr. Praveen Kumar Jain: Sr. No. Name of tine Bogus Concern Operated by Praveen Kumar Jain & PAN Nature of Transaction Amount of Transaction (in Rs. ) 1. Nakshatra Business Pvt. Ltd. (Hema Trading Co. Pvt. Ltd.) (AABCH4279G) 2010-11 Subscription of shares 24,00,000/- 2. Olive Overseas P. Ltd. (Realgold Trading Co. P. Ltd.) PAN:- AACCR4512K 2010-11 Subscription of shares 24,00,000/- Total 48,00,000/- 3. Therefore, in order to verify the aforesaid transactions, various statutory notices were issued to the Assessee. The Assessee in response has submitted the details of shareholders ....
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....vestors Genuineness i. Transaction through Account Payee Cha ii. Bank Statement of the Appellant and Investors iii. Share Application Forms iv. Copy of Investment confirmation by the Investors v. Copy of Affidavit given by Directors of the two Investor Companies vi. Form No. 2 and Form No.5 of the ROC (Allotment of Shares to the Investors). vii. Stamp Duty paid challan The above documents clearly prove the genuineness of the Investors" 5. The Assessee further submitted that by producing the aforesaid documents, all the ingredients of section 68 of the Act were fully proved and established before the AO, however, still the AO without providing the statement of Mr. Praveen Kumar Jain, who has admittedly retracted his statement and the information received from DGIT (Investigation), Mumbai and without any corroborative evidence, made the addition which is therefore at all is unsustainable. 6. The Ld. Commissioner while considering the aforesaid documents and claims of the Assessee ultimately deleted the addition by holding mainly that once the conditions mentioned u/s 68 of the Act are proved prima-....
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.... Transaction As could be seen from the assessment order, the appellant has furnished the details with regard to Nakshatra Business Pvt. Ltd and Olive Overseas Pvt. Ltd. but the AO has disbelieved the same. It was held by the AO that all the documents were self created. The Appellant in course of appellate proceedings has submitted as under:- 4. In the instant case, as has been stated, the addition has been made by the Assessing officer merely on the ground that the appellant company had received share application money sum of Rs. 48,00,000/- from the said above investors companies during the said assessment year. 5. The Learned Assessing Officer has erred in adding the said genuine share application money merely on the bases of the information received from the office of DGIT(Inv). Mumbai. It was alleged that Mr. Praveen Kumar Jain has admitted before the IT authorities that he had been indulged in the Business of providing accommodation entries in the form of Shares, capital gain, loans, sale and purchases etc. 6. It is also alleged that various documents were found from premises of Mr. Praveen Kumar Jain or his associates and those abo....
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.... Companies were as under :- Name of the Investor Company NET Worth (Financial year ending on 31.03.2010 (in Rs. ) (approx) Nakshatra Business Pvt. Ltd. (Formerly Known as Hema Trading Co. Pvt. Ltd.) 2,64,81,708/- (Rs. 2.64 crore) Olive Overseas Pvt. Ltd. (Formerly Known as Realgold Trading Co. Pvt. Ltd.) 2,68,09,320/- (Rs. 2.68 crore) Thus from the above table it could be concluded that the net worth of all the Investor companies were more than Rs. 250 lakhs (as per the Audited Balance Sheet for the financial year ending on 31st March 2010). The Amount of Share application money received by the appellant Company was merely Rs. 24 lakhs each as compared to their huge net worth's (more than 250 lakhs). Thus the creditworthiness of the Investor Companies is undoubtedly proved beyond any doubts by the appellant company. c. The Appellant Company's books of Accounts are Audited and were submitted to the learned Assessing Officer and there were no adverse remarks of the Auditors in the said Report. Therefore. the transaction entered into by the Appellant Company cannot be doubted. d. Ld. Assessing Officer has unaccepted the submission t....
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....rce & Nature explained: Related Assessment Year: 2012-13 Courts All ITAT ITAT Mumbai that Assessing Officer has merely proceeded to make addition of Rs. 7,00,000/- unsecured loans merely because the Rajat Group of Companies involved in the transaction of bogus purchases and rejected the evidences submitted before him i.e. assessee has submitted the confirmation balance and the transactions were only routed through bank and there is nothing on record brought by the Assessing Officer to believe that these transactions were non-genuine and except relying on the fact that the assessee is taken some accommodation entries from Gautam Jain Group and they were subjected to search proceedings. Therefore, we inclined to accept the findings of the Ld. CIT (A)". 5.4 In view of the evidences furnished by the assessee appellate proceedings I am of the view that the assessee has discharged his onus of proving the identity, genuineness and creditworthiness of the creditors and fulfilled the requirement of law Thus, the addition made by the AO on the basis of statement of Sh. Pravin Jain of Rs. 5,00,000/- as unsecured Loan from Javda India Impex Ltd. is to be deleted. This ground is allowe....
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....rs. decided on 05.09.2024, wherein the Hon'ble Co-ordinate Bench of the Tribunal by considering the peculiar facts and circumstances has held a under: "That the contention of the Ld. Counsel that loans have been repaid during the year under consideration, therefore the benefit of the same should also be given to the Assessee, has not hold any water, as it has been established that the impugned loans were nothing but accommodation entries and the repayment is also nothing but return of accommodation entries, therefore the money which has been brought in the garb of unsecured loan is nothing but the unaccounted money of the Assessee and the repayment of the same does not make any sense. Admittedly, there are various judgments of the Hon'ble Co-ordinate Benches of the Tribunal including in the cases of Sandesh Projects Pvt. Ltd. vs. ITO in ITA no.1734/M/2024 decided on 14.10.2024 and M/s. Sharda Labs Pvt. Ltd. vs. ITO (ITA no.1680/M/2020 decided on 10.02.2022) wherein the Co-ordinate Benches of the Tribunal had occasion to deal with one of the identical addition on the basis of loan received from Nakshatra Business Pvt. Ltd. as involved in the instant case and the statemen....
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....red loan transactions and accordingly, grounds raised by the assessee are allowed." 8. This Court also observe that the co-ordinate Bench of the Tribunal in Dy. CIT 4(3)-1 vs. Perfect Filaments Ltd. (ITA no.5162/M/2017 decided on 12.10.2020) has also dealt with the identical addition pertaining to the share application money received from one of the investors i.e. M/s. Olive Overseas Pvt. Ltd. as involved in the instant case and the Hon'ble Co-ordinate Bench of the Tribunal has also affirmed the deletion of identical addition pertaining to such company as well, by observing and holding as under: "8. We heard the rival contentions and perused the material on record and the judicial decisions. The sole disputed issue arises with respect to three investor companies, where the assessee has received share application money along with share premium. The assessee has issued shares to seven entities which includes three entities (i) M/s Casper Enterprises Ltd,(ii)M/s Sumukh Commercial Pvt Limited. And (iii) M/s Olive Overseas Pvt Ltd., belongs to Praveen Kumar Jain Group and due to search u/sec132 of the Act on the group, the statements were recorded by the investigation wing t....