TMI Blog2019 (2) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... as reproduced above is fully applicable. The loan in this case satisfies the criteria of loan taken in the regular course of business and the Revenue has not brought on record any cogent evidence to treat the same as bogus. In these circumstances, we do not find any infirmity in the order of the ld. CIT(A). - Decided against revenue - ITA No.4000/Mum/2017 - - - Dated:- 12-2-2019 - Shri Shamim Yahya, AM And Shri Sandeep Gosain, JM For the Appellant : Shri Chaitanya Anjaria For the Respondent : Shri Hitesh M. Shah ORDER PER SHAMIM YAHYA, A. M.: This appeal by the Revenue is directed against the order of the learned Commissioner of Income Tax (Appeals)-44, Mumbai ( ld.CIT(A) for short) dated 15.03.2017 and pertains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has not furnished any evidence to justify the creditworthiness and genuineness of the loan. 5. The appellant craves leave to amend or alter any ground or add a new ground. 3. Brief facts of the case are as under: The return of income was filed on 30.09.2013 declaring total income of ₹ 2,09,57,060/-. The assessee is an individual engaged in business of civil contractors through his proprietary concern named M/S Omkar Engineers and Contractors. A search seizure action was conducted in the Rajendra Jain group of cases by Investigation Wing, Mumbai. As a result of search, it was found by the Investigation Wing that this group is a leading entry provider of Mumbai. There are many concerns floated by the group who provide ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan. 4. Copy of Bank account of (he Lender. 5. Copy of Bank A/c of the Assessee. 6. Affidavit of the lender. 4.5 If the above referred principles are applied to the facts of the case under consideration it can be seen that the identity of the creditor has been established as they are having PAN and they are filing return of income, kjhe genuineness of the transaction is established from the fact that both the acceptance and repayment of loan has been through banking channels. Further the interest paid against such loan has been subject to TDS. The creditworthiness of the lender can be established from bank statement and balance sheet of the lender which were filed before the AO. ) 4.6 From the assessment order, it is seen t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rajendra Jain group of cases. On the other hand, the appellant was able to establish the identity and the creditworthiness of the creditor as well as the genuineness of transaction. 4.7 Recently the Hon'ble Bombay High Court has passed an order in WP No. 167 of 2015 dated 15.04.2015 in the case of M/s Rushabh Enterprises Vs ACIT 24(3) and Ors. Facts of this case are similar to the case of the appellant, In this case the assessee had taken loan from concerns related with BhanwarlalJain group of cases. In its order the Hon'ble Bombay High Court in addition to deciding the legal validity of reopening of assessment also discussed the facts of the case. The Hon'ble Bombay High Court in para 8 of its order Stated ......accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the ld. CIT(A). He further submitted that the copy of annual audited financial statement of M/s. Arihant Exports for the year ended 31.03.2013 in support of creditworthiness of the lender. He further submitted that from the computation of income it is evident that the loan creditors have accounted for interest paid by the assessee and has also claimed TDS thereon. Moreover, it has an annual turnover of ₹ 182 crores. The interest income accounted for in the profit and loss account is at ₹ 79,90,897/- and there is no evidence of cash deposit on or before the loan deposit cheque issued to the assessee. It was submitted that they have also filed the retraction statement affidavit dated 09.01.2014 filed by Rajendra Jain whose sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
