TMI Blog2018 (12) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... en the assessee and the AO of the lender company as discussed above. The assessee has discharged the onus by placing all the documents before the AO/Ld. CIT(A) as discussed above. CIT(A) erred in not giving credence to the aforesaid documents filed before him without any adverse material to substantiate his stand. Hence, we are inclined to delete the addition of ₹ 40 lakhs which the assessee has taken as loan as well as the interest which the assessee has given to the lender of ₹ 4,22,531/-. The additional disallowance u/s. 37(1)is also deleted. - decided in favour of assessee. - I.T.A. No. 2320/Kol/2017 - - - Dated:- 16-11-2018 - Shri J. Sudhakar Reddy, AM Shri A. T. Varkey, JM For the Appellant : Shri A. Kochar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n entries in lieu of cash and thereafter made the addition of ₹ 44,22,531/-. The AO also added ₹ 4,22,531/- separately (disallowance u/s. 37(1) on account of bogus expenditure) after taking note that the assessee had booked interest on loan to the tune of ₹ 4,22,531/- and since the loan itself has been treated by him as bogus, therefore, the interest debited in respect of the bogus loan was also disallowed. Aggrieved, assessee preferred an appeal before the Ld. CIT(A) who was pleased to dismiss the appeal of the assessee. Aggrieved, the assessee is before us. 4. We have heard rival submissions and gone through the facts and circumstances of the case. It was brought to our notice by the Ld. AR that the unsecured loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to page 31 of the paper book wherein the assessee has replied to the notice of the AO of the lender company M/s. Pasupati Tradelink Pvt. Ltd. wherein the assessee had confirmed to have repaid the loan amount of ₹ 40,00,000/- and filed (i) details of loan received, (ii) loan confirmation for the period ending 31.03.2015, (iii) bank account details, (iv) copy of ITR Acknowledgement for the AY 2015-16, (v) audited financial statement being P L Account and Balance Sheet for AY 2015-16. The Ld. AR drew our attention to the loan confirmation by the lender company M/s. Pasupati Tradelink Pvt. Ltd. which is placed at page 11 of the paper book and the Ld. AR drew our attention to page 12 from which the source of the advancing amount to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerns (i) M/s. Vasundhara International and (ii) M/s. Global Impex. The assessee was conducting trading of fans of Orient brand and was the distributor of it in the State of Rajasthan. We note that the assessee had taken a loan of ₹ 40 lakhs for M/s. Vasundhara International on 05.04.2013 which fact has been confirmed by the creditor/lender M/s. Pasupati Tradelink Pvt. Ltd. which is evident from perusal of page 11 of the paper book. The source of the lender company giving loan to the assessee has also been explained from the contents of page 12 of the paper book and this fact has been corroborated by the bank statement of the lender/creditor M/s. Pasupati Tradelink Pvt. Ltd. which is placed at page 13 of the paper book and the loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee (from funds it received from M/s. Godavari Exim Pvt. Ltd. as discussed) and we note that the AO has not made any exercise to discredit the loan creditor in any manner other than making certain general observations of the accommodation entry providers which cannot be the legal basis for disbelieving the loan the assessee received from M/s. Pasupati Tradelink Pvt. Ltd. and which amount the assessee has repaid as is evident from the correspondence between the assessee and the AO of the lender company as discussed above. The assessee has discharged the onus by placing all the documents before the AO/Ld. CIT(A) as discussed above. Therefore, the Ld. CIT(A) erred in not giving credence to the aforesaid documents filed before him witho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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