TMI Blog2017 (9) TMI 1604X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Komal Agrotech P. Ltd. Versus ITO [2017 (7) TMI 605 - ITAT HYDERABAD] - Decided in favour of assessee. - ITA Nos. 4691 & 4692/Mum/2015 - - - Dated:- 14-9-2017 - P. K. Bansal (Vice President) And Pawan Singh (Judicial Member) For the Appellant : Suman Kumar For the Respondent : J. P. Bairagra ORDER P. K. Bansal (Vice-President) These appeals have been filed by the Revenue against two separate orders of the CIT(A)-20, Mumbai, both dated 04.06.2015, for A.Ys 2007-08 and 2012-13. 2. We shall first deal with the appeal in ITA 4691/Mum/2015 for A.Y. 2007-08. Both the parties agreed that the issues involved in both the appeals are common with identical facts and, hence, whatever view is taken in A.Y. 2007-08 shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Directors of the aforesaid concerns during the course of assessment proceedings could not be served, and thereby, genuineness of the alleged loan transactions and creditworthiness of the loanee could not be established and hence the assessee could not discharge the onus resting on him? 4. The only issue involved in this appeal relates to the deletion of the addition of 40 lacs made by the Assessing Officer u/s. 68 of the I.T. Act and consequently, the deletion of the addition made by the Assessing Officer in respect of the interest thereon amounting to ` 45,134/-. The brief facts of the case are that on the basis of the information received from the DGIT (Investigation), Mumbai, the Assessing Officer noted that the assessee was on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through cheque and the said loan has been returned by the assessee in the next year through cheque. Thus, the Assessing Officer made the addition of the sum of ` 40 lacs as unproved cash credit u/s. 68 of the I.T. Act and correspondingly disallowed the interest amounting to `.45,134/- on the sum of ` 40 lacs. While making the addition u/s. 68, the Assessing Officer relied on the decision of Hon ble Supreme Court in the case of CIT vs. Durga Prasad More 82 ITR 540. Aggrieved the assessee went in appeal before the CIT(A). 5. Before the CIT(A), the assessee filed all the documentary evidences which were produced before the Assessing Officer consisting of the copies of confirmation of these loans, copies of bank accounts from which loan had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Copy of annual report of the parties for financial year 2006-07. f. Copy of loan confirmation from the parties. The Assessing Officer treated these loans to be non-genuine and made addition u/s 68 of the I.T Act on the basis of the statement of Shri Nilesh Parmar, one of the associate of Shri Praveen Kumar Jain, Director of Mohit International and one of the dummy Director of some of the companies of Shri Praveen Kumar Jain. Although said statement has been immediately retracted by him by filing a affidavit with the CBDT, the CIT(A) has deleted the said addition as in his opinion the assessee has duly discharged his onus as laid down on it u/s. 68 of the I.T.Act. It was also noted by the CIT(A) that the assessee has proved the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, in the case of CIT vs. Jansampark Advertising Marketing Pvt. Ltd. (supra), the additions have been made u/s. 68 in respect of the share capital received by the assessee from various companies and during the course of investigation, it was found that the share capital has been received from three entry operators, who are allegedly in the business of providing accommodation entries. Notices issued u/s. 131 to these parties were returned undelivered by the postal authorities with the remark left / no such person . Under these circumstances, the Hon ble High Court took a view that the assessee failed to discharge the burden to prove the credit worthiness as well as the genuineness of the transactions. 10. But in the impugned case, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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