TMI Blog2020 (5) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... are furnished and same reflected in their books of accounts - addition so made is rightly deleted by the Ld. CIT (A). In view of these facts and circumstances, we do not find any infirmity in the order of CIT (A), accordingly, same is upheld. Accordingly, all the grounds of appeal of as taken by the Revenue are therefore, dismissed. - I.T.A No.1509/AHD/2016 (Assessment Year: 2011-12) - - - Dated:- 4-5-2020 - SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER Assessee by Shri Ramesh Malpani, CA Revenue by Shri O. P. Vaishnava, CIT(D.R.) ORDER PER O.P. MEENA, AM: This appeal by the Revenue is directed against the order of learned Commissioner of Income tax (Appeals)-3, Surat (in short the CIT (A) ) dated 28.03.2016 pertaining to Assessment Year 2011-12, which in turn has arisen from the assessment order passed under section 143 (3)/154 dated 09.04.2014/31.03.2014 of Income Tax Act,1961 (in short the Act ) by the Deputy Commissioner of Income- Tax, Circle -1, Surat (in short the AO ). 2. Condonation of delay in filing of appeal before Tribunal: 3. The registry has pointed out that there is delay by one day in filin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PF and ESIC of ₹ 23,20,130/- and addition of ₹ 12,89,25,938/- u/s.68 of the Act. However, the addition made u/s.68 was left out to be added in computation of income hence, same was later added by the AO vide order u/s.154 dated 09.04.2014 of the Act. The AO noticed that the assessee has taken total unsecured loan of ₹ 14,76,38,600 from 56 persons, out of which 54 are based at Ranchi and remaining two are group concerns of the assessee. The AO had issued commissions to DCIT, Circle-1, Ranchi and ACIT-TDS, Circle- Ranchi under section 131 (1)(d) of the Act to conduct enquiries in case of the lenders based at Ranchi. The said officers have sent the enquiry reports, which are framing part of assessment order. The findings of the AO as per chart is as under: S. N. Name of the Lenders Alleged Loan (including interest) in Rs. Findings of enquiry 1 Akshay Kumar Singh HUF 6,88,738 including interest ₹ 61,438 The person has neither been found on enquiry nor produced by the assessee. Further, creditworthiness and ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -do- 11 J K Das HUF 1,53,794 Identity proved. However, bank statement reflects the same typographical characteristic as entry provider and genuineness of transaction not proved 12 Jeevn Kumar Das 1,64,780 -do- 13 Juhi Kumari 2,19,706 Daughter of Shri Jeevan Kumar Das, identity proved but creditworthiness not proved. She is found to be receiving entries from none other than some of the entry providers mentioned in the current list itself. Claimed to be earning tuition income, but no evidences submitted 14 Jyoti Vikas Industries 50,84,329 Assessee neither found nor produced. No confirmations filed. Not even proper documentary evidence filed. Case ails on all the three parameters. 15 Kiran Singh 2,52,662 Sister of Shri Jeevan Kumar Das. Identity proved but creditworthiness not proved. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccommodation entry providers detected from the bank account statement. 23 Mousami Sinha 4,06,128 The person was not traceable on inquiry nor produced by the assessee. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 24 Munna Kumar Singh HUF 1,71,232 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 25 Munna Singh 2,29,407 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er status as house wife in the bank passbook and on the other she is showing income from business profession. These contradictions have not been reconciled by the assessee. 31 R K Sinha HUF 1,44,889 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 32 Rajkumari Sinha 1,67,939 The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. 33 Rajesh Balmiki HUF 3,45,631 The person was not trace ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 38 Shivam Enterprises 2,80,83,183 Identity not proved. No confirmations filed. Genuiness of the transaction not proved. Creditworthiness cannot be established. On the contrary, it is seen that there are cash deposits of nearly ₹ 3,00,00,000/- in the same bank account. Despite a specific request, the assessee failed to produce the cash book etc of the alleged lenders to substantiate the source of such cash deposits. 39 Shree Ganesh Enterprises 76,47,946 This is a proprietorship concern of Shri Gayanendra Kumar Singh, who has neither been found nor produced by the assessee on commission inquiry. First the assessee provided wrong name as Gyan Singh. However, inquiry revealed the correct name. It is seen from the bank account statement that even though the fund transfer is out of over draft, the person has a tendency of returning the debt by frequent and substantial cash deposits. Despite a specific request, the assessee failed to produce the cash book etc of the alleged lenders to substantiate the source of such cash deposits. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kejriwal 11,91,240 Un-signed confirmations were filed. Later on, the assessee filed some letters in the name of confirmations, which cannot be relied upon in view of discrepancies. Bank account statement and other documents could not established the creditworthiness and genuineness of transaction. 47 Vishnu Kejriwal HUF 1,32,636 D 48 Vind Devi Kejriwal 3,86,811 Confirmation not filed at all.Bk Account Statement and other document could not established. The creditworthiness and genuineness of transaction TOTAL 12,89,25,938 8. Thus, In the light of above fact and findings, the AO made addition of ₹ 12,89,25,938 under section 68 of the Act. 9. Being, aggrieved, the assessee filed an appeal before the Ld. CIT (A). The findings given by the CIT (A) in his appellate order is reproduced as under: 7.1 The AR submitted detailed submissions dated 24. 06. 2015 and 28.01.2016 and also paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... But, from the above, it is clear that the Id AO had all the details of the said lenders. Moreover, the Id AO in the assessment order refers to the bank accounts, annual income, and balance sheets of the lenders. In view of this, it is apparent that the appellant has filed the basic details. 8. Comparison between enquiry reports / show cause notice and the conclusions made in assessment order 8A. The Id AO has given his findings / observation in the case of all lenders in form of table in para 15 of his order. The same is reproduced in first 4 columns of the Annexure -1, however, the 5th column is added by the undersigned, wherein the actual findings of, said enquiry reports are given. Annexure -1 is integral part of this order. 8(B) (i) As evident in column 4 of Annexure - 1, the Id AO observes in case of 42 lenders, neither found in address' nor produced by assessee'. However, on perusal of both the enquiry reports (Exhibits 1 2) to assessment order). it is evident that only 8 persons {5 as per DCIT Circle -1, Ranchi and 3 as per ACIT (TDS) Ranchi} were not found in the stated address. (ii) It, is also seen that, the two inquiry reports together s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon address. (viii) In para 8.2( ii) of the assessment order. the Ld AO draws adverse inference that ITR of 33 persons are filed by one Shri. N.K. Kejriwal, the AR has submitted explanation that Shri. N. K. Kejriwal is a Tax Consultant and CA, it is his profession to file ITRs and he is providing this service to more than 2000 persons. The Id AO has acknowledged th.at the lenders consists of (1) Shri N.K. Kejriwal and his family (2) close associates of Shri N .K. Kejriwal and family members of these close associates. It is also stated in assessment order that many of them are shareholders in appellant - company. It is common for people who know each other to make common investments and also to flock to same Tax Consultant or legal advisor. Moreover, out of said 33, about 12 are family members of Shri. N.K. Kejriwal and his associate Shri Jeevankumar Dash. On porusol of above facts and circumstances, the adverse inference drawn by Id AO on this reason is not justified. (ix)) AO' s observes as under in para 8.2 (iv) Shri J K Das family members had no clue regarding the lending of money to the appellant - company. They said that 0/1 their financial affairs are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound who is an unemployed person and earlier used to work for one Arya Hotel. (iv) On further probing, it was found that the assessee had provided wrong details and the correct person IS actually Gyanendra Kumar Singh and not Gyan Kumar Singh and the correct person is a resident of Near Akhil Memorial School, Sukhdeo Nagar, Ranchi -5. It was also found. that Shri Gyan Singh stands as a proprietor of concerns such as Gyan Enterprise, Ruhi Enterprise and Shree Ganesh Enterprise having office addressed at 1, Neelkuni Sukhdeo Nagar, Raw Rod, Ranchi. It is also seen that these concerns are showing business activities relating to manufacturing and trading of coke and crushing activity. The total of unsecured loans received by our assessee from Gyan Enterprise I Ruhi Enterprise and Shree Ganesh Enterprise comes to ₹ 1, 77, 00, 000, ₹ 73,00,000/- and ₹ 75,00,000/- respectively. (v} Another alleged lender namely Shivam Enterprise is owned by one Shri Aditya Kumar Dhanuka. This concern is shown to be engaged in transportation and trading of coal. However, it is seen from the report of the ACIT (TDS), Ranchi, the said Shri Gyankurnar Singh was identified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nil 13,00,000 NIL Nil 5 Kejriwal Dyg Ptg Mills Pvt Ltd. 05.04.2010 15,00,000 NIL NIL 6 Keriwal Integrated Textile Park P Ltd. Various dates ₹ 4.86 crores Total cash deposits in the year ₹ 47.50 lacs As seen above, the cash deposits are either NIL or negligible as compared to the quantum of the loan. It can be further seen that all the accounts have substantial OD limits as compared to loans given by them. In view of this, the cash deposits are too meager and irrelevant to draw inference of any kind. 9.2 Common Source - Motilal Oswal The Id AO has drawn conclusion that 40 lenders have received money from the common source, since the amounts have been received from M/s Motilal Oswal on online shore broking firm. The conclusion of the Id AO is not appreciable as amounts transferred to and from M/s Motilal Oswal are towards purchase or sale of securities alone through Motilal Oswal brokerage portal. The actual source o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the copies of ITR and bank account copies and proofs of new addresses, I find that the evidences are overwhelmingly in support of AR 's explanation. 9.3.2 In the case of MIs Jyoti Vikas Industries, Proprietary concern of Shri Kamal Kumar Dhanuka, the Ioan received is ₹ 50 lacs. The required details could not be given by Shri Jeevan Kumar Dos at Ranchi. The AR s explanation for the same is that Shri Kamal Dhanuka was in custody in connection with a Coal Scam and also the bank account has been attached. However, the AR insists that the details were initially filed alongwith details of other lenders before the AO. Since as already discussed, it is not possible to give definite finding on what was filed before AO, the presumption goes in favour of the appellant. Further, during tile appeal proceedings, the AR furnished copy of confirmation, ITR copy, bank a/c and also FIR copy. It is seen that loan was received from M/s Jyoti Vikas Industries on 08.07.2010 and repaid by appellant on 03.09.2010. It is also seen that Shri Kamal Dhanuka has been named as accused in FIR for soft coal scam involving loot of ₹ 8.92 crores by CBI. Ranchi. Ironically, the FIR s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of monies to' the assessee . Thus, there is a contradiction on the part of the Id AO and it is also. not clear, which documents have been relied on by the Id AO. 10.2.3 The Id AO has not given specific findings from examination of any balance sheet/ Capital account. Once the said loan transaction appears in the balance sheet, it is presumed to have source as evident on liability side of the balance sheet, unless the same is refuted by specific adverse finding/ discrepancies. No such findings have been given by the Id A.O. The creditworthiness to make investment or to give loan cannot be judged by current year s income, but, by net worth . The investments or loans can be made out of accumulated savings, from borrowals or from realization of an earlier investment / asset, even though income for that years is NIL. In the instant case, the ld. AO himself has given a finding that many lenders have advanced the loans out of proceeds of sale of shares through M/s Motilal Oswal share Brokers. The immediate source of the said loans are apparent. Hence, there is no relevance of discussion on annual income of the lenders. The AR has submitted that even though the annual income we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As already discussed, the lenders are either shore -holders of appellant - company or their family members or their business associates or Group concerns hence. the advancing of loan by them to appellant cannot be said to lack genuineness. Moreover, the said loans are interest bearing (@ 12 %), which is more than bank rate. All the transactions are made through banking channels. It is also seen that. in nine cases, the loans have been repaid by the appellant in the same year. Repayment of loan in many cases is itself a evidence of the genuineness of loan, unless there is an adverse finding such as immediate cash withdrawal of the amount by lender to handover back the same to the appellant. Here, no such finding has been made. As already discussed in para 9.1 (supra), the bank statements do not show high cash deposits within 15 days immediately before or 15 days after the said loan transactions. Seven of the lenders are either sister concerns or family . members of the Managing directors of the appellant - company. No specific finding from examination of bank accounts or documents filed by the appellant / Jeevan kumar Das has been given In view of the above, the loans appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereas the other loans are treated as unexplained loans'. On examination of re curds, it is also seen that the facts and circumstances are identical for these loons too. Some type of documents were produced before the Id AO as well as the officer at Ranchi, doing inquiry. Since, there is no distinguishing feature, pointed out by the Id AO, explanation and documents furnished in these cases carry the same degree of credibility as in the case of other lenders. It is also not the case of tile Id AO that these loans were not added, because lenders are family members / group concerns of the appellant, because loans from other family members and Group concerns (given in table below) have been added u/s 68 of the Act, b I the Id AO. When the same documents have been accepted by the Id AO, as proof enough for few of the loans, then rejection of said documents for others ,is not explained at all, in the assessment order. This inconsistency to views taken by the Ld. A.O. List of Relatives of Kejriwal Group whose loans has been added Name Pan Addition Amount Sumitra Devi, AGQPD0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh belongs to appellant and the AO is free to examine said cash deposits in the assessments of the said lenders ( in instant case no substantial cash deposits have been found). iii) Once the above details are filed, it is for the AO to do enquiry and give findings to refute the documents with cogent reasons. (iv) The Hon'ble jurisdictional High Court of Gujarat, in Sr No.3 above, has held as under:- Once the assessee has established that he has taken money by way of account payee cheques from the lenders who are all income tax assessees whose PAN have been disclosed, the initial burden under section 68 was discharged. It further appears that the assessee had also produced confirmation letters given by those lenders. [Para 15] Once the Assessing Officer gets hold of the PAN of the lenders it was his duty to ascertain from the Assessing Officer of those lenders, whether in their respective returns they had shown existence of such amount of money and had further shown that those amount of money had been lent to the assessee If before verifying of such fact from the Assessing Officer of the lenders of the assessee, the Assessing Officer decides to examine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Park Pvt. Ltd. are the sister concern of the assessee from Surat. The Ld. CIT (DR) submitted that the AO had issued commission under section 131 (1) (d) of the Act to DCIT- TDS Ranchi to make enquiries with regard unexplained creditors shown by the assessee. The inquiry report received by the AO were made part of assessment order as Exhibit Exhibit-I and II. The AO discussed the finding of enquiry report in para No. 8.2 to 87 and summarized the conclusion in chart form in para 8.8 of his order. The Ld. CIT (DR) contended that the pattern of deposits and issuance of cheque established that not only the alleged lenders are not have any creditworthiness and mere accommodation entries through their bank account. The Ld. CIT (DR) contended that that mere filing of return of income of such lenders does not justify the genuineness of transaction. There is no justifiable commercial connection as to why these companies would investment with the assessee company. The ld. CIT vehemently supported the findings recorded by the AO and contended that the Ld. CIT (A) was not justified in deleting the addition made under section 68 of the Act by the AO. 12. Au contraire, the learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been given from CCA account and from Kejriwal Dyeing and Printing Mills Pvt. Ltd. whose financial have been accepted by the same AO in the assessment order made under section 143 (3) of the Act of even date. 13. The learned counsel for the assessee referred point no. 9 at Page No. 3 of appellate order wherein Ld. CIT (A) has mentioned the claim of the assessee that it is surprising that cash deposits of ₹ 15, 00,000/- in the case of M/s. Kejriwal Dyeing Printing Mills Pvt. Ltd. has been considered as unexplained in the case. Whereas the ld. AO himself has scrutinized the said assessee u/s. 143(3) and have verified the books of accounts of M/s. Kejriwal Dyeing Printing Mills Pvt. Ltd. This shows the predetermination of the state of mind of the Ld.AO which superseded the facts available on the record with the AO and leaded the AO to make an unjustified and unlawful decision. The learned counsel for the assessee referred para No. 7.1 of CIT (A) order and submitted that the CIT (A) in the presence of the AO, the ACIT, Circle- 1(1)(2) Surat and the A.R. of the assessee has carried out joint examination of records and recorded a finding in his order sheet dated 20.01.2016 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... encloses the said documents but there is no finding given from the examination of said documents. The learned counsel for the assessee referred para No. 9 of appellate order and submitted that CIT (A) has observed that the enquiry report of ACIT (TDS) Ranchi revealed that M/s. Gyan Enterprise was having turnover of ₹ 3.27 crores and who have lent a sum of ₹ 1.77 crores. This loan was repaid by the Appellant during the year itself. M/s. Ruhi Enterprise had turnover of ₹ 2.88 crores, it has lent ₹ 75 lakhs, and the Appellant has repaid the same in the same year. Similarly, M/s. Ganesh Enterprise who lent ₹ 73 lakhs, which has been repaid by the Appellant in the same year. The ACIT (TDS) Ranchi or the AO has not given any adverse finding in respect of creditworthiness or genuineness of transaction in respect of these concerns. The learned counsel for the assessee further submitted that the lenders were not asked to be produced by the AO before him. The learned counsel for the assessee referred para No. 9.3.1 to 9.3.2 of appellate order and submitted that Ld. CIT (A) has observed that there is contradictory reports of the AO. It was further observed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation has been furnished , Assessing Officer could not make addition on account of unsecured loan and interest thereon. 16. The learned counsel relied in the case of CIT v. Orissa Corporation (P) Ltd. [1986] 159 ITR 78 (SC)/ 25 Taxman 80(SC), the Hon`ble Supreme Court observed that when the assessee furnishes names and addresses of the alleged creditors and the GIR Numbers, the burden shifts to the Department to establish the revenue s case and in order to sustain the addition the revenue has to pursue the enquiry and to establish the lack of creditworthiness and mere noncompliance of summons issued by the Assessing Officer under section 131 by the alleged creditors will not be sufficient to draw an adverse inference against the assessee. 17. The learned counsel for the assessee submitted that many lenders, the loan were repaid in same year and thereafter, therefore, it was submitted that where the loan were repaid in immediate next financial year and Department has accepted the repayment of loans without probing into it. Then no addition is required to be made in respect of said lenders. In support of this claim , the learned counsel for the assessee has relied in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Pvt. Ltd. taken in cash has been accepted by the same AO in assessment order passed under section 143 (3) of the Act on same date, in the case of said concern and no adverse inference has been drawn. Therefore, the law does not allow the AO to consider the said loan as non-genuine transaction, when he himself has accepted the same in assessment in respect of said concern. With reference to AO`s observation`s in para 12.2 at Page No. 28 of assessment order that why these person having weak financial credential would advance unsecured loans the assessee company when return on such loans does not justify the associated risk. The learned counsel for the assessee pointed out that the interest paid to these entities are @ 12% , hence, the observation of the AO are mere suspicion and conjecture only. We observe that Ld. CIT (A) has given a categorical findings column no. 4 of Annexure-1 of assessment order and enquiry report (Exhibits 1 2 to assessment order) revealed that only 8 persons (5 as per DCIT Circle -1 Ranchi and 3 as per ACIT(TDS) Ranchi were not found at the stated address. The show-cause notice of the AO dated 24.03.2014 also acknowledged that only 8 person on the given add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had filed all address of the creditors but due to time gap, it is possible that at the time of enquiry they will have shifted to new address. However, copies of incometax returns and copy of new address was filed before CIT (A) in respect of eight person who were not found at the stated address as per enquiry reports. In view of these facts and circumstances, we are of the considered opinion that Ld. CIT (A) has rightly deleted the addition made under section 68 of the Act by the AO. 19. We further observed that the ld. CIT (A) has examined each and every creditors/ lenders and given his factual findings of enquiry report as well as facts of each lenders in column 5 of Annexure-A forming part of his appellate order which is reproduced as under: Sr. No. Name of Lender Remarks Statement made by Ld AO What the inquiry report reveals 1 Akshay Singh HUF ₹ 6,88,73R (Loan- 6,27,300 + Interest- 61,438) The person has neither been found on inquiry nor produced by the assessee. Further, creditworthine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 6 Chandan Sarawgi ₹ 1,32,922 (Loan- 1,21,000 + Interest- 11,922) The person has neither been found on 1nqu1ry nor produced Further, creditworthiness genuineness of transactions ore also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 7 Deepmala ₹ 5,10,817 (Loan- 4,65,000 + Interest- 45,817) The person neither has been found on 1nqu1ry nor produced Further, creditworthiness genuineness of transactions ore also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est-13, 794) Identity proved. However, bank account statement reflects the same typical characteristics as of entry providing entities. Genuineness of transactions also not proved. J K Das (HUF) is the same person with the name Jeevan Kr Das. He is an associate of Sri N K Kejriwal. He has produced ITR copies, bank accounts, etc of all the lenders. 12 Jeevan Kumar Das ₹ 1,64,780 (Loan 1,50 ,000 + Interest- 14,780) Identity proved. However, bank account statement reflects the same typical characteristics as of entry providing entities. Genuineness of transactions also not proved. J K Das (HUF) is the same person with the name Jeevan Kr Das. He is an associate of Sri N K Kejriwal. He has produced ITR copies, bank accounts, etc of all the lenders. 13 Juhi Kumari ₹ 2,19,706 (Loan- 2,00,000 + Interest- 19,706) Daughter of Shri Jeevan Kumar Das. Identity proved but creditworthiness not proved. She is found to be receiving entries from none other than some of the entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an- 2,95,000 + Interest- 28,892) The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. He is the same person with the name Mangal Kr Singh (HUF) ITR copy and bank accounts copy produced. 19 Manju Devi ₹ 2,19,706 (Loan- 2,00,000 + Interest- 19,706) Wife of Shri Jeevan Kumar Das. However, bank accounts statement reflects the same typical characteristics as of entry providing entities. Genuineness of transaction also not proved. She is wife of Jeevan Kr Das ITR copy and bank accounts copy produced. 20 Manju Hemani ₹ 1,36,108 (Loan- 1,24,000 + Interest- 12,108) The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account statement. The Karta does not live at the given address. But, ITR copy, and copy of bank account produced by J Das before the DCIT Circle-1, Ranchi. 25 Munna Singh ₹ 2,29,407 (Loan- 2,09,000 + Interest- 20,407) The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Same as above. 26 Nitya Nand Singh HUF ₹ 2,70,042 (Loan- 1,95,000 + Interest- 75,042) The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Further, it is also seen that on one hand she has shown her status as house wife in the bank passbook and on the other she is showing income from business profession. These contradictions have not been reconciled by the assessee. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 31 R K Sinha HUF ₹ 1,44,889 (Loan- 1,32,000 + Interest- 12,889) The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 36 Roshanlal HUF ₹ 6,15, 771 (Loan- 5,60,000 + Interest- 55,177) The person was not traceable on inquiry nor produced by the assessee. It was rather found that there is an autorickshaw driver in the locality of Shri Jeevan Kumar Das. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report is silent about this person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 37 Ruhi Enterprise ₹ 75,03,040 (Loan- 73,00,000 + Interest- 2,03,040) This is a proprietorship concern of Shri Gayanendra Kumar Singh, who has neither been found nor produced by the assessee on commission inquiry. First the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of returning the debt by frequent and substantial cash deposits. Despite a specific request, the assessee failed to produce the cash book etc of the alleged lenders to substantiate the source of such cash deposits. Creditworthiness and genuineness not proved. Shri Ganesh Enterprises is engaged in the business of crusher at Barajamda. 40 Subodh Sinha HUF ₹ 1,59,159 (Loan- 1,45,000 + Interest- 14,159) The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness genuineness of transactions are also not proved. Several features of Accommodation entry providers detected from the bank account statement. Inquiry report silent about his person. Copies of ITR, computation and copy of bank accounts given before the inquiry officer, at Ranchi. 41 Subodh Sinha ₹ 2,91,806 (Loan- 1,17,000 + Interest- 1,74,806) The person has neither been found on inquiry nor produced by the assessee. Further, creditworthiness genuineness of transactions are also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were not asked to be produced by the AO before him. The learned counsel for the assessee referred para No. 9.3.1 to 9.3.2 of appellate order and submitted that Ld. CIT (A) has observed that there is contradictory reports of the AO. It was further observed that the assessee had filed all address of the creditors but due to time gap, it is possible that at the time of enquiry they will have shifted to new address. However, copies of income-tax returns and copy of new address was filed before CIT (A) in respect of 8 person who were not found at the stated address as per enquiry reports. The learned counsel for the assessee referred para No. 10 of appellate order wherein the CIT (A) has examined and discussed h issue of identity, creditworthiness and analysis of bank account and genuineness of transaction. It was submitted that that as per para No. 11 of CIT (A) order the AO has not made addition in respect of person mentioned in table at para No. 11.1 observed that the AO has not made addition in respect of Serial No. 45,46,47, 49,50,51 and 52 without any discussion in the assessment order. There is no discussion authority these loans were treated as explained, whereas fact and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s proved the creditworthiness by way of filing ITR returns, bank account, balance sheet, confirmation of the creditors. The assessee is not expected to prove the genuineness of cash deposits in bank accounts of those e creditors because under the law the assessee can be asked to prove source of credit but not the source of the source as held by the Hon`ble Bombay High Court in the case of Orient Trading Co. v. CIT [1963] 49 ITR 723 (Bombay). Therefore, in such a situation and considering above fact and finding , we are in complete agreement with the reasoning given by the Ld. CIT (A) that when full particulars, inclusive of the confirmation with name, PAN, copy of Income-tax returns, balance sheet Profit Loss Account computation of income are furnished and same reflected in their books of accounts. Further, the findings recorded by the Ld. CIT (A) are also supported by the decision of Hon ble Gujarat High Court and Hon`ble Supreme Court as discussed above. The addition so made is rightly deleted by the Ld. CIT (A). In view of these facts and circumstances, we do not find any infirmity in the order of CIT (A), accordingly, same is upheld. Accordingly, all the grounds of appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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