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2022 (9) TMI 571 - AT - Income Tax
Addition u/s. 68 - Accommodation entries by way of bogus loans from entities - CIT(A) deleted the additions - HELD THAT:- Assessee has taken loan from three parties i.e. Easy Mercantile Company, Ryan International and Sevem Star Gems. It is fact on record that assessee has filed all the relevant documents, relevant for the loan transactions which includes bank statement, confirmations, financial records, return of income and also affidavits from the loan creditors to prove that these transactions are genuine.
All these facts were clearly submitted before the CIT(A) and CIT(A) considering the submissions and verifying each loan transactions in detail the loan confirmations, affidavits, etc., filed by these parties. CIT(A) after verification of the bank statements came to the conclusion that there is no cash deposits nowhere involved in any of the transactions entered into by the assessee as well as the lenders.
As observed that merely statement of having given accommodation entries is not sufficient to make the addition, such statements remained uncorroborated by any independent evidences as to having carried any fictitious trade in diamond as claimed in the statement.
After duly verifying the details submitted before him he came to the conclusion that assessee has proved the identity, creditworthiness and genuineness of the transactions and in the similar cases the Coordinate Bench has also deleted the similar additions made in the cases involving PKJ.
We are in agreement with the Ld.CIT(A) that assessee has proved the genuineness, identity and creditworthiness in these transactions. It is relevant to note that the assessee has not only taken the loan and also repaid the loan. Therefore, we do not find any reason to disturb the finding of the Ld.CIT(A). Accordingly, ground raised by the revenue is dismissed.