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2022 (7) TMI 586 - AT - Income TaxAddition u/s 68 on accommodation entry of loan and addition u/s 69C on Commission - information from the Investigation Wing was that there was a search/survey action conducted in the premises of M/s Bhanwarlal Jain Group from which it was evident that they were involved in providing in accommodation entry to beneficiary companies by providing cheque in lieu of cash and the assessee company had availed unsecured loan from few companies - CIT-A deleted the addition as opined that the AO has made the additions of entire loan merely on the basis of general statement / information - HELD THAT:- CIT(A) took note of the fact that there were no specific findings by the AO on alleged involvement of the assessee in such accommodation transactions other than the general statement recorded during the search of Shri. Banwarlal Jain which has been retracted . CIT(A) further noted that during the remand proceedings before the AO, the assessee had filed Affidavit in respect of loan given and received back, ledger account, Income tax returns and Confirmation given by all the lenders to the assessee. CIT(A) notes that the AO could not find any fault/infirmity in respect of the said relevant evidences on the issue and has simply ignored the same by merely relying on the general statement. CIT(A) has found that AO has not carried out any investigation to prove that the assessee has indulged in taking accommodation entry from the aforesaid lenders. CIT(A) also took note that even during the search the cash trail has not been identified to bring on record that the assessee had given cash in lieu of the purported loan/accommodation transaction by exposing that the cash given by assessee was deposited in some bank account which was routed to the entities/lenders which gave loans to the assessee. On the aforesaid finding of relevant facts of the CIT(A), he gave relief to the assessee. As before us, the revenue could not point out any error in the finding of fact discussed (supra). In the light of the uncontroverted finding of facts by the CIT(A), according to us, the assessee had discharged the onus to prove the loan transaction which could not be rebutted by the AO. Based only on the retracted general statement of Shri Bhanwarlal Jain, without any incriminating oral testimony against the assessee on this issue of loan, and in the light of the supporting evidence of the loan given by the assessee (which has been repaid & interest income taxed in the hands of the lenders) it would be unsafe to mulct any addition in the hands of the assessee. So the impugned action of the Ld. CIT(A) is confirmed. - Decided against revenue.
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