2022 (6) TMI 830 - AT - Income Tax

Reopening of assessment u/s 147 - addition u/s 68 - unsecured loan creditor - HELD THAT:- Assessee has taken unsecured loan from M/s. Navkar Diamonds and paid relevant interest to them. AO based on the information from investigation wing, reopened the assessment and based on the statement given by Shri Bhanwarlal Jain he made certain enquiries before the assessee as well as unsecured loan creditor by issuing relevant notices and came to the conclusion that this transaction is accommodation entry and assessee has not proved the genuineness and creditworthiness of the transactions.

As relying on M/S.INDRAVADAN HANJARIMAL JAIN, VERSUS ACIT 31 (2) , KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, MUMBAI [2021 (9) TMI 1396 - ITAT MUMBAI] Assessing Officer has issued notice u/s.133(6) of the Act and received the response. Therefore, we are inclined to set-aside the order of the Ld.CIT(A) and direct the AO to delete the addition. - Decided in favour of assessee.