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2018 (12) TMI 1618 - AT - Income TaxAddition u/s 68 - unsecured loan from the person engaged in providing the accommodation entry - addition relying on statement of accommodation entry providers - proof to genuineness of loans - HELD THAT:- The assessee had provided income tax return acknowledgement of M/s Daksh Diamonds, account confirmation, bank statement of the assessee as well as M/s Daksh Diamond, audited financial statement, details of repayment of loan. The Ld. CIT(A) while appreciating that the assessee had proved the identity, creditworthiness and genuineness of loans had taken into consideration that the transactions of both the loan received and the repayment of the loan had passed through banking channels. At the same time, the AO had not led any evidence that any cash was paid by the assessee to the parties who had given the loan. The statement of Bhanwar Lal Jain on which the AO has placed complete reliance was not given to the assessee. The proprietor of M/s Daksh Diamonds, Shri. Ritesh Siroya replied to the notice issued by the AO u/s 133(6) of the I.T. Act and offered to produce the party before the AO for examination. On the contrary, the AO merely relied upon the statement given by Shri. Bhanwar Lal Jain and the modus operandi and the affairs of BhanwarLal Jain group to make the addition. Also neither Mr. BhawarLal Jain nor Mr. Ritesh Siroya had taken the name of the assessee at any point of time to state that they had given an accommodation entry for loan to him.- decided in favour of assessee
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