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TMI Blog2018 (12) TMI 1618X X X X Extracts X X X X X X X X Extracts X X X X ..... for the sake of convenience; they are clubbed, heard and disposed of by this consolidated order. 3. First of all we take up appeal in ITA No. 159/Mum/2017 filed by revenue for AY 2007-08 on the grounds mentioned herein below:- 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 75,00,000/- made by the AU under section 68 of the Income Tax Act, 1961 on account of unsecured loan from the person egaged in providing the accommodation entry. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law as well as on facts in ignoring the fact that a search action under section 132 of the Act was conducted in the case of Shri Bhanwar Lal Jain and vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the form of unsecured loans from their benami concerns. Consequently, the case was reopened and order of assessment u/s 143(3) r.w.s 147 of the I.T. Act was passed thereby making additions u/s 68 of the I.T. Act. Aggrieved by the order of AO, assessee preferred appeal before Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties partly allowed the appeal of the assessee. Now before us, the revenue as well as assessee have preferred their respective appeal/ cross objection. Firstly we are dealing with the appeal filed by the revenue. Ground No. 1 to 3 5. These grounds raised by the revenue are inter connected and inter related and relates to challenging the order of Ld. CIT(A) in deleting the made by the AO u/s 68 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nels which is evidenced from the bank account statements of both the parties. There is no evidence of any cash being paid by the appellant to the party which has given the loan. The appellant had asked for copy of the statement of Shri Bhanwar Lal Jain on which the AO has placed complete reliance but the same was denied to him. The AG had issued notice u/s 133(6) to M/s. Daksh Diamond calling for certain details. The proprietor of M/sDaksh Diamonds, Shri. Ritesh Siroya replied to the notice with all necessary documents. The appellant offered to produce the party before the AG for examination but the AO was silent on that. The AO has merely relied upon the statemeent given by Shri. Bhanwar Lal Jain and the modus operandi and the affairs of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transactions, the genuineness of the transactions has been established and the creditworthiness of the lender is also established. In view of this, the loan taken by the appellant of Rs. 75 lakhs is held to be genuine. The addition made on this count is directed to be deleted. This ground of appeal is allowed. After having gone through the facts of the present case as well as orders passed by the revenue authorities, we find that Ld. CIT(A) had appreciated the details provided by the assessee which leads to prove the genuineness of loans. The assessee had provided income tax return acknowledgement of M/s Daksh Diamonds, account confirmation, bank statement of the assessee as well as M/s Daksh Diamond, audited financial statement, detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for loan to him. Even otherwise the loan were repaid by the assessee and the details of such repayment are recorded in para 5.2.1 of the order of Ld. CIT(A). Apart from that, all the transactions were reflected in the bank statements of both the parties. The transactions had passed through the banking channels, both the parties had confirmed the transactions, the genuineness of the transactions has been established and the creditworthiness of the lender was also established. Thus considering all those facts, Ld. CIT(A) had rightly deleted the additions. We have also considered the decision relied upon by the assessee wherein also, the Coordinate Bench of the Tribunal in ITA No. 7079/Mum/16 in the case of ACIT Vrs. Dilip Chimanlal Gandhi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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