TMI Blog2011 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. - ITA No. 1767/Del/2011 - - - Dated:- 1-12-2011 - SHRI RAJPAL YADAV, SHRI A.N. PAHUJA, JJ. Represented by: Assessee by Smt. Lalita Krishnamurthy, AR Revenue by Smt. S. Mohanthy, DR ORDER A.N. Pahuja: This appeal filed on 11.04.2011 by the Revenue against an order dated 14.02.2011 of the ld. CIT(A)-XXVI, New Delhi, raises the following grounds: - 1. On the facts and in the circumstances of the case, the ld. CIT(A) was not justified in deleting the addition of Rs. 20,00,000/- made by the AO u/s 68 of the I.T. Act, 1961 inspite of the fact that the assessee had failed to establish the genuineness of the transaction which could prove that the loan amount was received by the assesse through banking channel o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SC), the assessee replied that transaction represented only diversion of funds from one person to another within the family and no third party was involved. However, the AO did not accept the explanation of the assessee and added the aforesaid amount of Rs. 20,00,000/-, invoking provisions of sec. 68 of the Act. 3. On appeal, the ld. CIT(A) deleted the addition, holding as under: - 4.4 I have considered the submissions of the ld. Counsel, the AO s remand report and other facts on record. In this case there is no dispute that the loan of Rs. 20 lcas shown from Sh. Pritam Goel is only by way of book entry in the books of M/s Lyra Industrials. Neither the giver of loan nor the receiver of loan is claiming to have exchanged the sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before us against the aforesaid findings of ld. CIT(A). The ld. DR supported the findings of AO while the ld. AR on behalf of the assesse relied upon the order of the ld. CIT(A). 5. We have heard both the parties and gone through the facts of the case. Indisputably, the loan of Rs. 20 lacs shown from Sh. Pritam Goel father of the assessee was only a journal entry in the books of M/s Lyra Industrials. Since there was no physical transfer of money from the account of Sh. Pritam Goel and only a journal entry was passed, the findings of the AO that transaction was sham ,is baseless, the ld. CIT(A) concluded. In the light of these findings of ld. CIT(A) especially when the Revenue have not placed before us any material so as to enable u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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