TaxTMI 
TaxTMI 
2025 (4) TMI 1997
X X X X Extracts X X X X
X X X X Extracts X X X X
....ai-400 058, ledger account of the Assessee in the books of M/s. Akhilesh Suppliers Pvt. Ltd. was found which is reproduced herein below: "Akhilesh Suppliers Pvt Ltd 13C, Bechu Chatterjee Street Kolkata CIN: U51109WB2005PTC105179 Advance - Atul Kshirsagar Ledger Account 1-Apr-18 to 31-Mar-19 Page 1 Date Particulars Vch Type Vch No. Debit Credit 31-Oct-18 To Oriental Bank of Commerce Payment 53 25,00,000.00 13-Nov-18 Το Oriental Bank of Commerce Payment 55 50,00,000.00 7-Dec-18 To Oriental Bank of Commerce Payment 66 25,00,000.00 1-Feb-19 By Oriental Bank of Commerce Receipt 34 5,00,000.00 95,00,000.00 By Closing Balance 1,00,00,000.0 0 1,00,00,000.0 0 1,00,00,000.00 1,00,00,000.00 3. Therefore, vide show cause notice dated 10.01.2023 u/s 142(1) of the Act, the Assessee was show caused "as to why the unsecured loan of Rs. 1,00,00,000/- from M/s. Akhilesh Suppliers Pvt. Ltd. being shell company should not be treated as unexplained cash credi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the aforesaid submissions and documents, the Assessee has discharged his onus cast u/s 68 of the Act. 5. The Assessing Officer (AO), though considered the submissions of the Assessee and the document filed, however, did not get satisfied and therefore treated the said amount of Rs. 1,00,00,000/- being unsecured loan, as unexplained cash credit in terms of provisions of section 68 of the Act and consequently added the said amount in the income of the Assessee, by mainly holding that the Assessee has failed to establish the identity and creditworthiness of the lender i.e. M/s. Akhilesh Suppliers Pvt. Ltd. and genuineness of the transactions. 6. The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner and raised various issues and also relied on various judgments and in order to prove the identity, creditworthiness and genuineness of the transactions, filed following documents: (1) copy of PAN, copy of ITR and address of M/s. Akhilesh Suppliers Pvt. Ltd.; (2) copy of balance sheet and profit & loss account of M/s. Akhilesh Suppliers Pvt. Ltd.; (3) copy of bank statement showing payments to the Assessee; (4) copy....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of Akhilesh Suppliers Pvt Ltd ii) Copy of balance sheet and P & L account of Akhilesh Suppliers Pvt Ltd iii) Copy of bank statement showing payments to the appellant iv) Copy of bank statement of the appellant showing receipt from the lender v) Copy of ledger account vi) Copy of company master data from MCA portal These documents were also furnished before the A.O during the Assessment proceedings. 20. As stated above, in the impugned assessment order, the AO had made the addition u/s.68 of the Act holding that the appellant had failed to prove the identity and creditworthiness of the party and the genuineness of the transactions in question. Therefore, the question whether the appellant has been able to prove the identity and creditworthiness of the parties and genuineness of the transactions is decided herein below after considering the findings of the AO in the impugned assessment order, submissions of the appellant and the material available on record. 21. IDENTITY : The appellant has furnished a copy of PAN, copy of ITR, copy of financials and details of CIN from the MCA portal. The appellant ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the appellant was one of the director of the company from F.Y 2012 onwards. 23.2 The only objection of the AO is that the company Akhilesh Supplier Pvt Ltd was operated by one entry operator Shri Subhash K Agrawal and he had admitted that he was in the business of providing accommodation entries. It is seen from the assessment order that the statement u/s 131 of the I.T Act was recorded on 15.09.2014. At that time the registered office of the company was at Kolkata. Subsequently the registered office of the company was shifted to Mumbai and the name of the company was also changed. The appellant Shri Atul Kshirsagar was one of the directors of the company from F.Y 2012-13. In the assessment order, AO has also stated that statement of Shri. Girish Ravindra Amonkar, who was beneficiary shareholder of Akhilesh Suppliers Pvt Ltd, was recorded u/s 131 of the I.T Act and in the said statement, he had categorically mentioned that the affairs of the company are handled by Shri Atul Kshirsagar. It is evident from this statement that in the assessment year under consideration, the appellant was the director of M/s Akhilesh Suppliers Pvt Ltd and all the affairs of the company w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fore, of the opinion that the Commissioner of Income-tax (A) has rightly deleted the additions and allowed the appeal and which order was rightly upheld by the Tribunal" III. The Honb'le Gujrat High Court in case of Ayachi Chandrashekhar Narsangji (42 taxmann.com 251) has held as under- "6. Having heard Shri Pranav Desai, learned Counsel appearing on behalf of the revenue and on perusal of the order passed by the CIT(A) confirmed by the ITAT, it appears that CIT(A) was satisfied with respect to the genuineness of the transaction and creditworthiness of Shri Ishwar Adwani and, therefore, deleted the addition of Rs. 1,45,00,000/- made by the Assessing Officer. It is required to be noted that as such an amount of Rs. 1,00,00,000/- vide cheque no. 102110 and an amount of Rs. 60 lakh vide cheque no. 102111 was given to the assessee and out of the total loan of Rs. 1.60 crore Rs. 15 lakh vide cheque no. 196107 was repaid and, therefore, an amount of Rs. 1,45,00,000/- remained outstanding to be paid to Shri Ishwar Adwani. It has also come on record that the said loan amount s been repaid by the assessee to Shri Ishwar Adwani in the immediate next financial year and the D....