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TMI Blog2023 (7) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee which reads as under:- "9. That the Assessing Officer has, in view of the facts and circumstances of the case, erred on facts and in law, in making addition/ disallowance of Rs. 85,00,000.00 on account of Unsecured Loans treating as share application money an accommodation entry on the basis of information from ADIT (Investigation). The addition/disallowance made is illegal, unjust and without any basis. The CIT (A) erred in upholding the same." 4. Ld. Counsel of the assessee submitted that the AO as well as the ld CIT(A) has grossly erred in making addition of disallowance of Rs. 85 lakhs on account of unsecured loan treating as share application money and accommodation entry on the basis of information from ADIT (Investigation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e holders and genuineness of the transaction, therefore, he was right in confirming the addition made u/s 68 of the Act. 8. Placing rejoinder to the above, the ld counsel submitted that neither the AO nor the ld CIT(A) has rightly characterize the transaction undertaken by the assessee as the AO in para 7.4 noted that during the year during year under consideration the assessee converted the unsecured loan into share money and during the year as shown as allotted to the four parties. The ld CIT(A) has right from beginning held the same as share capital/ share premium whereas the books of account and financial statement clearly reveals that it was only unsecured loan and never converted into share application money neither during the earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion directly submitted to the assessee by the creditor Joyful Tie-up Pvt. Ltd vide dated 14.03.2017 it is clear that the creditor submitted all documentary evidence establishing its identity, capacity and creditworthiness before the AO in response to notice issued u/s 133(6) of the Act issued by the AO. It is clear that the lender confirmation statement of accounts at the end of the year of Rs. 25 lakhs from copy of bank account of the lenders I further note that the cheque issued on 29.02.2012 there was no cash deposit before issuing the cheque to the assessee and balance was of Rs. 28,10,000/-. At remaining pages from 98 to 122 are copies of return of income, copy of audited books of account, balance sheet etc which were filed before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nse to notice u/s 133(6) of the Act submitted reply vide dated 15.03.2017 along with other relevant documentary evidence such PAN, ITR-V, statement of accounts and copy of bank accounts for the relevant period confirming the factum unsecured loan of Rs. 50 lakhs given to the assessee and receipt of interest @8% PA i.e. Rs. 4 lakhs after deduction of TDS thereon. Page 126 clearly reveals that at the time of issuing of cheque there was balance of Rs. 61 lakhs in the bank account of the lender and earlier to that there was no cash deposit to the bank account of the lender from which the assessee received unsecured loan through banking channel. Other documents i.e. copy ITR, auditor's report and balance sheet filed at page 133 clearly reveals t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quent FY 2012-13. The copy of ledger for subsequent FY 2012-13 available at page 162 reveals that the assessee had also paid interest @8% amounting to Rs. 80,000/- and TDS @ 20% was also deducted thereon and remaining of Rs. 64000/- was paid to the lender through cheque No. 058147. Other documentary evidences which was filed by the lender along with his confirmation and reply to the AO in his response to the notice u/s 132(6) of the Act clearly reveals that the assessee was consistently filing return of income and the unsecured loan was recorded in the books of account of the lender and the assessee has received amount of Rs. 10 lakhs on 02.03.2012 and prior to that there was balance of Rs. 10,19,960/- and there was no cash deposit to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. On the basis of foregoing discussion I have no hesitation to hold that the assessee during the proceeding before the AO as well as before the ld CIT(A) successfully discharges its onus lend on his shoulders as per requirement of section 68 of the Act and submitted all documentary evidences under his command establishing the identity, capacity and creditworthiness of the lenders and genuineness of the transactions rooted through banking channels. It is also pertinent to mention that all the three lenders in response to notice issued u/s 133(6) of the Act responded to the AO and submitted written confirmation along with of relevant documentary evidences as noted above. 16. The ld AO did not controvert the fact and the same has also not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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