2023 (6) TMI 512 - ITAT MUMBAI

Bogus loans u/s 68 - unsecured loans from the three loan creditors and interest on loans - loan providing entities were part of the Bhanwarlal Jain Group - reliance on third party statement - AO received the information that the assessee is one of the beneficiaries of the accommodation entries provided by the group concerns - CIT-A held as assessee has discharged the burden by submitting the requisite information and the onus lies on the AO to make enquires and deleted the addition - HELD THAT:- In spite of filing all the details, the A.O. has not conducted any investigation or enquiry in respect of the information submitted by the assessee.

CIT(A) has considered the facts, circumstances and observed that the assessee prima-facie has complied the ingredients required u/s 68 of identity, genuineness and creditworthiness. CIT(A) relied on the catena of judicial decisions and test checked the genuineness and creditworthiness of the lenders. CIT(A) came to a reasonable conclusion that the assessee has discharged its burden on submitting the information in the assessment proceedings and the A.O. has failed to conduct the enquiries and the A.O should have conducted independent investigation without relying on the third party statements and facts.

AR demonstrated the copy of bank statements reflecting the credits from the three parties along with other evidences - A.O has failed to make further enquiries and relied on the statement recorded, which was retracted subsequently and has overlooked the factual aspects that the assessee has discharged the initial burden placed by submitting the information - DR could not controvert the findings of the CIT(A) with any new cogent material or information to take different view - Decided against revenue.