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2018 (7) TMI 361 - ITAT MUMBAIAddition u/s. 68 - availing accommodation entries for unsecured loans - Held that:- In the case under consideration the assessee had filed all the necessary details like affidavits and the confirmations of the lenders along with the bank details and the returns of income tax. The AO had not made any comments about these documentary evidences. Secondly, the case before us is about accommodation entries and not about bogus purchases. We find that in the cases of Vikram Mukti Lal Vora (2017 (5) TMI 1270 - ITAT MUMBAI), the Tribunal has dealt with the identical issue, that that in that matter issue of accommodation entries by the group concerns of BLJ was deliberated upon. The Tribunal, in the similar circumstances, had upheld the order of the FAA who had deleted the addition made by the AO under the head addition on account of accommodation entries. Considering the above, we decide the first effective ground against the AO. Addition on account of interest paid by the assessee on the loans received by it from RS and GV - Held that:- As we have decided the first effective ground of appeal against the AO and the interest issue is directly linked with the loan transactions. So, we hold that there is need to interfere with the order of the FAA. Second effective ground of appeal is decided against the AO. Validity of reassessment proceedings - validity of reasons to believe - Held that:- A perusal of the reasons reveal that the AO has no where alleged that there was failure on part of the assessee to disclose fully and truly the material facts necessary for completing the assessment. In our humble opinion, the allegation of not disclosing the material facts fully and truly has to be proved i. e. as to how the assessee did not disclose the material facts. Mere repetition of the language of the section is not sufficient. It has to be proved as to how and which material facts were not disclosed. AO has not whispered anything about the failure of the assessee. - Decided in favour of assessee
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