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2022 (8) TMI 1074 - AT - Income TaxAddition u/s 68 - unexplained cash credit - liability on the assessee to provide the identity of the lenders, establish the genuineness of the transactions and creditworthiness of the parties - HELD THAT:- Undisputed fact that the majority amount of loan received by the assessee was refunded to the loan parties. It implies that the assessee was not the beneficiary of the loan received by it as alleged by the AO. The majority amount of loan has been repaid by the assessee in the year under consideration itself except a sum of Rs. 1,05,05,000.00. Therefore, it is difficult to hold that the assessee was the ultimate beneficiary of the impugned amount. Thus, we can assume that the impugned transaction was the business transactions between the assessee and the loan parties. We hold that the amount of loan received by the assessee represents the unexplained cash credit in its books of accounts. Accordingly, we set aside the finding of the CIT-A and direct the AO to delete the addition made by him. Hence, the ground of appeal of the assessee is allowed. Addition income from accommodation entries - HELD THAT:- There is no dispute to the fact that the assessee was engaged in providing the accommodation entries and this fact was admitted by the authorities below. Accordingly, the assessee has offered an income on estimated basis for Rs.53,22,075.00 being 0.5% of the total bank deposits in the bank which was also accepted by the revenue - addition was made by the AO on the basis of the admission made by the assessee during the assessment proceedings - assessee in the ground of appeal before us has challenged the impugned addition. To our understanding, the ground raised by the assessee is not sustainable for the reason that the addition was made on the concession of the assessee which is evident from the assessment order - AR has not brought out anything based on the documentary evidence that the income offered during the assessment proceedings was wrong. Accordingly, we do not find any merit in the ground raised by the assessee. Disallowance of bogus loss - As alleged by the authorities below that such loss was set off of against the income derived by the assessee from the sale purchase of property whereas there was no income added by the authorities below on account of sale purchase of the property. In fact the discussion was made about the profit which the assessee has earned on the transaction of sale purchase of the property but no addition was made. Thus it is clear that such loss was not set off against the profit from the sale purchase of the property - no addition can be made holding that the impugned loss is a bogus loss. Besides the above, once it has been admitted by the authorities below that the assessee has been engaged in providing the accommodation entries and accordingly the profit has been estimated based on the bank deposits of the assessee, thus, the impugned transaction of purchase and sale of the property on the same day is nothing but a part of accommodation entry at this was also accepted by the revenue. Accordingly, the question of making the addition on account of impugned loss does not arise. Thus the ground of appeal of the assessee is allowed.
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