TMI Blog2023 (10) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ail including the fact that in some of the cases there are cash creditors who had already advanced funds for the assessee in the preceding year and some fresh loans have been taken. Interest has been paid through banking channels and tax has been deducted at source. AO failed to bring any adverse material against the assessee and the loan borrowed. Most of the unsecured loans have been repaid in the subsequent period. We, thus are of the considered view that the ld. CIT(A) after examining the facts of the case and giving finding of fact that the assessee has explained the nature and source of alleged sum and has proved the identity and creditworthiness of the cash creditors and genuineness of the transactions and further placing reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... N BLE ACCOUNTANT MEMBER For the Assessee by : Shri A.K. Tibrewal, FCA For the Revenue by : Shri Abhijit Kundu, CIT, Sr. D/R ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal has been preferred by the revenue against the order of Learned Commissioner of Income Tax (Appeals)-13, Kolkata, (hereinafter referred to as the ld. CIT(A) ), passed u/s 250 of the Income Tax Act, 1961 (hereinafter the Act ) dated 18/09/2020, for Assessment Year 2013-14. 2. The Registry has pointed out that there is a delay of 59 (fifty nine days) days in filing the present appeal before the Tribunal. The revenue has filed a petition for condonation stating that the impugned order passed by the ld. CIT(A) dt. 18/09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly paid to 11 parties from whom fresh loans were received by the assessee firm during the previous year 2012-13. 3. On the facts and in the circumstances of the case Ld. CIT(A) erred is law as on the cases of the case deleting the disallowing the sum of Rs. 25,967/- under section 14A of the I.T. Act read with Rule 8D of the income Tax Rules, 1962. 4. On the facts and in the circumstances of the case Ld. CIT(A) erred is law as on the cases of the case deleting the disallowing the sum of Rs. 1,39,829/- @20 per cent of the aggregate amounts of expenditure incurred by the assessee firm on account of telephone charge, travelling and Motor car expenses, whichever not maintaining in the books of accounts bills and vouchers produced the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Out of the 10 cases to whom summons u/s 131 were issued in 8 cases summons could not be served as there is no existence of such parties in the said premises. Change of addresses filed by the assessee but there also parties are not existed. (b) The assessee was also given several opportunities to produce the parties but failed to produce even one of the loan creditors which articulates the fact that such loans are completely bogus and existing in paper only. (c) Reply received from two parties, have returned income of Rs. 0/- and Rs. 10,557/- during the A.Y. 2013-14 but loan received from such parties are Rs. 30,00,000/- and Rs. 40,00,000/-. Therefore, it is evident that such parties have no credit worthiness to give such huge am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and have meagre source of income and transactions carried out in the bank shows that these are accommodation entry providing companies and, therefore, the assessee has failed to explain the source of the said sum. 7.1. On the other hand, the ld. Counsel for the assessee placing reliance on the finding of the ld. CIT(A) also referred to various documents placed on the paper book containing 220 pages and also placed reliance on the following decisions:- Commissioner of Income Tax vs. Orissa Corpn. (P.) Ltd. [1986] 159 ITR 78 (SC) CIT vs. M/s. Dataware Private Ltd. (ITAT No. 263 of 2011 : G.A. No. 2856 of 2011 (Calcutta High Court) Ashish Sumatibhai Shah vs. The DCIT in ITA No. 2994/Ahd/2017 (Ahmedabad ITAT) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h creditors and genuineness of the transactions and further placing reliance on the judgement of the Hon ble Calcutta High Court in the case of CIT vs. Dataware Pvt. Ltd. (ITA No. 263 of 2011 dated 21.09.2011), Hon ble Delhi High Court in the case of CIT vs. Sophia Finance Ltd. (1993) 113 CTR (Del.) FB 472 and Hon ble Gujarat High Court in the case of CIT vs. Ayachi Chandrashekhar Narsangji [2014] 42 taxmann.com 251 (Gujara), has rightly deleted the addition made by the Assessing Officer under section 68 of the Act and also allowed the interest expenditure. Thus, no interference is called for in the finding of the ld. CIT(A). Thus, Ground Nos. 1 2 of the revenue are dismissed. 10. Ground No. 3, is against the disallowance m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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