TMI Blog2023 (12) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... documentary evidences have been furnished to establish the fact that the interest income was received, however, the materials on record are to the contrary. From the evidences furnished as observed that the assessee has received interest on the advances and after deduction TDS assessee has offered the net interest amount of Rs. 4,12,042/-. Pertinently, though, AO has accepted the amount of Rs. 15 lakhs received by the assessee from the very same entity, strangely enough, he has treated the balance amount of Rs. 35 lakhs as unexplained cash credit. This, in our view is unsustainable. Since, the source of credit in the books of the assessee is well explained; we are of the view that the addition made is unsustainable. Accordingly, we dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the alleged unsecured loan of Rs. 35 lakhs supposed to have been received from M/s. HES Energy Systems Pvt. Ltd. According to the Assessing Officer, such unsecured loan is in the nature of accommodation entry. In course of assessment proceedings, the Assessing Officer called upon the assessee to explain the genuineness of such loan transaction by furnishing confirmed copy of account, copy of Income Tax Return, and copy of bank passbook etc. to establish the identity and genuineness of transactions. In response, the assessee furnished its reply stating that there is no such loan transaction between the assessee and M/s. HES Energy Systems Pvt. Ltd. However, disbelieving assessee s claim, the Assessing Officer proceeded to treat the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered rival submissions and perused the materials on record. From the ledger/account copy of M/s. HES Energy Systems Pvt. Ltd. in books of account of assessee, it is noticed that the assessee had advanced an amount of Rs. 50 lakhs to the said entity through cheque on 23.06.2008. The said amount was repaid to the assessee in two tranches of Rs. 15 lakhs and 35 lakhs on 26.03.2009 and 30.03.2009 respectively. Even the repayments to the assessee were through banking channel. Though, learned first appellate authority has alleged that interest received on such advance has not suffered TDS and no documentary evidences have been furnished to establish the fact that the interest income was received, however, the materials on record are to the contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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