TMI Blog2019 (1) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of assessee. - ITA No. 2425/Ahd/2015 - - - Dated:- 24-10-2018 - Shri Mahavir Prasad, Judicial Member And Shri Amarjit Singh, Accountant Member For the Assessee : Shri S.N. Divetia, A.R. For the Revenue : Shri Mudit Nagpal, Sr. D.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER :- This revenue s appeal for A.Y. 2009-10, arises from order of the CIT(A), Gandhinagar, Ahmedabad dated 22-05-2015, in proceedings under section 143(3) r.w.s. 263 of the Income Tax Act, 1961; in short the Act . 2. The revenue has raised following substantive ground of appeal:- 1. The ld. CIT(A) has erred in law and on facts in deleting addition made on account of bogus unsecured loan as cash credit u/s. 68 of the I.T. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest. The assessing officer observed that only transfer entries were made as appearing in the bank account and concluded that assesssee firm was trying to introduce its unaccounted money through Shri Jayantibhai Patel. Therefore, the amount of ₹ 1 crore was added to the total income of the assessee as unexplained unaccounted money. 3.1 Regarding unsecured loan of ₹ 7 lacs received from Shri Pursottambhai Patel. the assessing officer stated that the bank account of the lender showed a meager deposit of ₹ 3,886/- on 9th June, 2008 then all of a sudden, there was a credit of ₹ 4,60,000/- and ₹ 6,50,000/- on first July, 2008 and on the next day an amount of 11 lacs was provided as loan to some other person. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the AO has wrongly compared data of preceding year in case of Shri Purshottam Gangaram Patel with data of current year in case of appellant which has led to such discrepancy. It is observed that interest paid by appellant to Shri Purshottam Gangaram Patel is /- ₹ 67,082/- during the year under consideration. Consequently interest income offered by Shri Purshottam Gangaram Patel is ₹ 67,082/- (after due deduction of tax at source) which is in parity with interest expenditure debited by the appellant. Hence the observation of AO with respect to discrepancy in interest income and consequent interest expenditure is incorrect. In view of above, it is clear that deposits made are through banking channel and is supported by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch, 2012. 6. We have heard the rival contentions and perused the material on record carefully. Regarding addition of ₹ 1 crore pertaining to unsecured loan obtained from Jayantilal Ramdas Patel. It is noticed that return of income of the depositors was submitted wherein taxable income of ₹ 8,07,88,951/- was offered for taxation on which taxes of ₹ 1,82,70,285/- was paid. We observe that It demonstrates the creditworthiness of the depositors that he was having sufficient taxable income as against the loan of ₹ 1 crore granted to the assessee. It is further noticed that assessee has furnished the relevant information about the lender i.e. address, PAN , loan confirmation letter , bank statement and copy of return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terprises managed by one Praveen Kr. Jain used a vehicle for purpose of bogus loan transaction. The statement of the person who was managing these shell companies Mr. Pravin Kr. Jain was recorded in which he had admitted that loan transactions made through above referred two shell companies were not genuine. During the search operation, statements of connected persons were recorded and the parties could not prove the genuineness of the transactions. It was proved that the loans were obtained from shell companies. Those shell companies were operating without any significant trading, manufacturing or service activity and those business entities were used just to provide accommodation entry to the asssessee. However in the case of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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