9911796707
TMI Blog2019 (2) TMI 1718X X X X Extracts X X X X X X X X Extracts X X X X ..... deleting the addition of Rs. 1,00,00,000/- made u/s.68 of the Act on account of unexplained cash credit as the assessee failed to prove the identity, creditworthiness and genuineness of the said loan. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition u/s.68 of the I.T. Act on account of unexplained cash credit despite the fact that the party from whom the alleged loan was received by the assessee was listed as hawala entry provider who indulged in providing accommodation entry of unsecured loans and related to Pravin Kumar Jain and his group. 3. On the facts and in the circumstances of the case the finding of Ld. CIT(A) that the AO has only discussed the facts of Pravin Kum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee the amount of Rs. 1,00,00,000/- was added in the income of the assessee. Feeling aggrieved the assessee filed the present appeal before the CIT(A) who allowed the claim of the assessee, therefore, the revenue has filed the present appeal before us. ISSUE NO.1 TO 4:- 5. All the issues are in connection with the deletion of the addition in sum of Rs. 1,00,00,000/- made by the Assessing Officer u/s.68 of the Income Tax Act, 1961. The search and seizure action u/s.132 of the Act was conducted in the case of Shri Praveen Kumar Jain Group on 03.10.2013 by DGIT (Inv.) Mumbai. The Assessing Officer received an information that assessee has taken bogus entry by way of loan of Rs. 1,00,00,000/- from M/s. Falak Trading Co. Pvt. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. Courts are of the firm view that the evidence produced by the assessee cannot be brushed aside in a casual manner. 4. The onus of proof is not static. The initial burden lies on the assessee to establish the identity and the credit worthiness of the creditor as well as the genuineness of transaction. 5. The identity of creditors can be established by either furnishing their PANs or assessment orders. The genuineness of the transaction can be proved if it was shown that the money was received by a/c payee cheque. Creditworthiness of the lender can be established by attending circumstances. 3.4 During the course of assessment proceedings, the following details were filed before the AO 1. Loan confirmation from the lender. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hiness or his identity was not established. As mentioned in para 3.5 above, the genuineness of transaction and the identity as well as the creditworthiness of the lender have been established. It can be seen from the assessment order that the entire focus of the AO was on the modus operandi adopted by Praveen Kumar Jain Group of cases to provide bogus accommodation entry of loan. The main reason for making addition u/s.68 was on the basis of information provided by the Investigation Wing. While the information provided by the Investigation Wing can be starting point of an enquiry it cannot be a conclusion reached by the AO. The moot point before the AO was to examine the application of section68 in the case of the appellant. Instead of esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are also accordingly filed. There is no dispute in regard to the above. We find nothing to support the said contentions of the revenue. The revenue's contention in the affidavit in reply has no merit. On the other hand, the loans appear to be taken in the regular course of business......" 3.8 After considering the totality of facts, the rival submissions, applicable law and on the basis of discussions mentioned above I have come to a conclusion that nature and source of credit in the books of accounts of the appellant stands explained. Consequently, addition u/s.68 cannot be sustained. The grounds of appeal nos.1 to 7 are accordingly allowed and addition of Rs. 1,00,00,000/- is deleted." 6. On appraisal of the above mentioned finding, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
