TMI Blog2018 (5) TMI 2129X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's appeal, CIT (Appeals) has referred to all the evidences regarding the loan submitted by the assessee which included confirmation from the lender. Thereafter the ld. Commissioner of Income Tax (Appeals) has also referred to Hon ble Bombay High Court decision in this regard. When all the relevant details and evidences were filed by the assessee and the assessing officer has made no effort whatsoever to examine the lender, there is no infirmity in the order of the ld. Commissioner of Income Tax (Appeals). Accordingly, we confirm the same. Appeal by the Revenue stands dismissed. - I.T.A. No. 4669/Mum/2017 - - - Dated:- 17-5-2018 - Shri Shamim Yahya, AM For the Appellant : Ms. Hemalatha. For the Respondent : Ms. Ket ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case, the finding of the Ld CIT(A) that the assessee has proved identity, creditworthiness and genuineness of loan is perverse on facts as the assessee has not furnished any evidence to justify the creditworthiness and genuineness of the lender (v) The appellant prays that the order of the Ld CIT(A) on the above grounds be set aside and that of the AO be restored. 3. Brief facts of the case are as under: The return of income was filed on 26.11.2011 declaring total income of Rs.99,069/-. The assessee is an individual deriving her income from business, long term capital gain other sources. A search seizure action was conducted in the Bhanwarlal Jain group of cases by Investigation Wing, Mumbai. As a result o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax (Appeals) deleted the addition by holding as under: 3.4 During the course of assessment proceedings, the following details were filed before the AO. 1. Loan Confirmation front the lender. 2. PAN No. of the lender. 3. Copy of the Return of Income of the Lender which advanced the loan. 4. Copy of Bank account of the Lender. 5. Balance sheet of the lender 6. Details of interest paid on loan. 3.5 If the above referred principles are applied to the facts of the case under consideration it can be seen that the identity of the creditor has been established as they are having PAN and they are filing return of income. The genuineness of the transaction is established from the fact that both the acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 operand! adopted by Bhanwarlal 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 the 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 section 68 in the case of the appellant. Instead of establishing that the explanation offered regarding the nature and source of credit in the books of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions of the revenue. The revenue's contention in the affidavit in reply has no merit, 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 of Rs.35,00,000/- as unexplained credits cannot be sustained. The addition of Rs 35,00,000/- is therefore deleted. Further, the transaction of loan is held to be genuine and therefore, the interest paid on such loan is also allowed. Consequently, the addition of Rs 2,91,123/- is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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