TMI Blog2022 (9) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... etting any precedence for the alleged transactions, we estimate income of the assessee @ 3% of the total loans advanced i.e., 3% of Rs.1,00,00,000/- which comes to Rs.3,00,000/- and direct the Assessing Officer to sustain the said addition and the remaining addition of Rs.97,00,000/- stands deleted - Appeal of assessee partly allowed. - I. T. A. No. 1540/Kol/2019 - - - Dated:- 29-8-2022 - SHRI RAJPAL YADAV , HON BLE VICE PRESIDENT AND SHRI MANISH BORAD , HON BLE ACCOUNTANT MEMBER Assessee by : Shri Soumitra Choudhury , Advocate Revenue by : Shri Arup Chatterjee , Sr. D / R ORDER PER SHRI MANISH BORAD , AM : The present appeal is directed at the instance of the assessee against the order of the Learned Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the records are that the assessee is a Private Limited Company engaged in the business of investment in shares and loan financing. The assessee e-filed its return of income on 23/09/2014, declaring total income of Rs.3,401/- for the Assessment Year 2014-15. Case selected for scrutiny through CASS followed by service of notice u/s 143(2) 142 (1) of the Act. During the course of assessment proceedings, the ld. Assessing Officer examined the bank statement of the assessee and noticed that loan totaling to Rs.90,00,000/- was received from M/s. Yogmaya Distributors Pvt. Ltd. on three different occasion and loan of Rs.10,00,000/- received from M/s. Vilasini Sales Pvt. Ltd. and the total sum of Rs.1,00,00,000/- was given as short term interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition u/s 68 of the Act and came to a conclusion that the assessee failed to prove the identity and creditworthiness of the cash creditors and genuineness of the transactions and thus, confirmed the action of the Assessing Officer. 5. Further aggrieved, the assessee is now in appeal before this Tribunal raising various grounds. But the sole grievance of the assessee is that the ld. CIT(A) has erred in confirming the addition of Rs.1,00,00,000/- made by the Assessing Officer u/s 68 of the Act. 6. The ld. Counsel for the assessee apart from reiterating the submissions made before the lower authorities, further stated that the loans in question were taken through proper banking channels. Loan confirmations were received and placed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by supporting the orders of the lower authorities and stated that the assessee failed to prove the genuineness of the transactions and creditworthiness of the cash creditors. 8. We have heard rival contentions and perused the records placed before us as well as the case laws cited by ld. Counsel for the assessee. 9. The sole grievance of the assesse is that the ld. CIT(A) erred in confirming the addition of Rs.1,00,00,000/- made by the Assessing Officer u/s 68 of the Act as unexplained cash credit. From perusal of the bank statement placed in the paper book, we find that the amount of Rs.1,00,00,000/- was received by the assessee as per the following schedule:- Date Name Amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, M/s. Yogmaya Distributors Pvt. Ltd. denied having any such transaction with the assessee. A showcause notice dt. 22/11/2016 was issued by the Assessing Officer asking the assesse to explain as to why the credit of Rs.1,00,00,000/- shall not be treated as unexplained income for the purpose of addition u/s 68 of the Act. In compliance, the assessee filed reply as under:- This is in reference to your letter dated 22th November, 2016, in this regard we would like to take some time to collect the said documents from the concerned party M/s. Yogmaya Distributers Pvt Ltd and M/s. Vilasani Sales Pvt. Ltd. Hope we will be able to provide explanation with supporting documents which would be self-explanatory towards the transactions. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of business of the assessee is not that of an accommodation entry provider. Normally, those assessee s who are indulged in business of such accommodation entry are unable to provide any details of the persons from whom they had received such loans and also the persons to whom such loans were advanced and there are frequent entries of similar amounts of debit and credit and usually there are voluminous transactions in the bank statements of so called accommodation entry providers. However, on perusal of the bank statements of the assessee we notice that from 01/04/2013 to 08/04/013, there are hardly seven to eight transactions and the assessee has provided necessary details to explain all the alleged cash creditors as well as the per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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