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2016 (5) TMI 469 - ITAT DELHI

2016 (5) TMI 469 - ITAT DELHI - TMI - Addition u/s 68 - Unexplained loans - Held that:- Assessee has fully proved its burden and discharged the onus upon the Department, however, no contrary evidence was shown by the AO which will prove that the transactions were not genuine, therefore, the addition made by the AO and confirmed by the Ld. CIT(A) is totally unwarranted and the same needs to be deleted - Decided in favour of assessee - I.T.A. No. 737/DEL/2014 - Dated:- 4-4-2016 - SHRI N.K. SAINI, .....

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justified in confirming the appeal of addition of ₹ 5,00,000/- taken as loan by cheque and repaid by cheque.? 3. That the case of the assessee was covered with the case of Golden Remedies Pvt. Ltd. vs. ITO (2007) 18 SOP 260 Delhi in which it was held that taking of loan by cheque and repayment of loan by cheque do not come under the provisions of Section 68 and such the addition is illegal. It is prayed that the addition of ₹ 5,00,000/- made in the income of the assessee be deleted .....

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d cash from the various beneficiaries etc. Detailed enquiries were conducted by the DIT (Inv) New Delhi and the various entry operators like Sh. Mahesh Garg and Trilok Chand Bansal etc. admitted before the Addl. DIT (Inv), Unit-I New Delhi that there was a scam of accommodation entry given by the various entry operators on commission basis. The details of the accommodation entry operators and their beneficiaries were compiled and the same were sent to the various AOs for necessary action. 2.1 Ac .....

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the Appeal before the Tribunal. 5. Ld. Authorised Representative of the assessee has stated that assessee has received a loan from Sh. Prem Chand Batra for ₹ 5 lacs on 20.7.2004 vide account payee cheque and during the assessment hearing has filed the complete details of the lender Sh. Prem Chand Batra vide his letter dated 12.11.2010, who is duly assessed to income tax alongwith the PAN card, copy of balance sheet and affidavit and Bank Statement regarding giving loan to Himanshu Chawla. .....

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laws. 6. On the other hand, Ld. DR relied upon the orders of the authorities below and requested the same may be upheld. 7. We have heard both the parties and perused the records, especially the orders of the revenue authorities, the Paper Book and documents attached therewith and the case laws cited by the Ld. Authorised Representative of the Assessee. We find that the AO has noted that specific information from the DIT(Inv), New Delhi has been received about the accommodation entry of ₹ .....

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case was taken up for scrutiny the assessee returned the alleged loan to avoid scrutiny which apparently shows that the identity, creditworthiness and the genuineness of the alleged claim of Loan are not at all proved as the assessee had actually received the accommodation entry as found in the enquiries conducted by DIT (Inv) New Delhi and the AO and accordingly, he confirmed the action of the AO. However, we note that the assessee Sh. Himanshu Chawla received a loan from Sh. Prem Chand Batra .....

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lance sheet and his affidavit confirming that he has given the loan to Himanshu Chawla, bank statement of the lender i.e. with Corporation Bank, Karol Bagh, Delhi A/c no. SB01/013579. We find that the lender has given loan of ₹ 5,00,000/- only from his bank account and there was balance of ₹ 15,66,084.52 on 20.07.2004. From the balance sheet of donor also we find that the donor is having a capital of ₹ 75.43 lacs. So the conclusion drawn by the Ld. AO is totally wrong that it i .....

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ould have called him by issuing summons but no such opportunity of cross examination was given, so the addition made by the AO is totally unjustified. It is a settled law that it is not the duty of the assessee to bring or produce the lender/donor, if he has discharged his onus. Before making any addition the AO must bring some material on record to prove his allegation that the impugned amount represented assessee's undisclosed income. But the AO has not done any efforts in this regard. Add .....

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ount as share application money. In order to prove genuineness of transaction, the assessee brought on record various documents such as names and addresses of share applicants, confirmatory letters of share applicants, copies of their bank statements etc. The Assessing Officer found the assessee's explanation to be unacceptable and, consequently, added the amount of share application money to assessee's taxable income which was deleted by the Commissioner(Appeals). The Tribunal upheld th .....

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