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TMI Blog2024 (12) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessment Year 2017-18. 2. Brief facts are that for the Asst. Year 2017-18 the assessee filed its Return of Income on 26-10-2027 declaring total income of Rs. 3,13,63,890/- which was processed u/s. 143(1) of the Act. The assessment was reopened based on the information from DDIT (Inv.), Kolkata, that the assessee received accommodation entry of Rs. 1,25,00,145/; Rs. 23,00,000/= and Rs. 95,00,000/= from M/s. Gurumukh Mercantile Pvt. Ltd; M/s.Aastha Commotrade Pvt. Ltd. and M/s Gainwell Mercantile Pvt. Ltd. which are all Paper/Shell companies controlled by Shri Mukesh Banka, Entry Operator. 2.1. Whereas the assessee claimed that it had received unsecured loan of Rs. 1,25,00,000/- M/s. Gurumukh Mercantile Pvt. Ltd. and also repaid the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the beneficiaries who had taken accommodation entries in the form of unsecured loan from M/s Gurumukh Mercantile Pvt. Ltd. during the year under consideration, 5.9 In view of the above factual discussions and legal matrix of the case, the AO is directed to delete the addition made of Rs. 1,25,00,000/-. Thus, the ground of appeal no. 3 is allowed. 6.1 I have carefully perused the assessment order and submission filed by the appellant. It is observed from assessment order that interest paid by the appellant of Rs. 2,60,199/- on loan amount of Rs. 1,25,00,000/- taken from M/s Gurumukh Mercantile Pvt. Ltd was disallowed. The appellant submitted that it had repaid the loan along with interest. 6.2 Since the addition in respect of u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k statement, it is seen that the said unsecured loan was received through banking channel. In this regard, on perusal of ledger account, it is clearly seen that the appellant had repaid the entire outstanding unsecured loan of Rs. 1,46,38,205/- along with interest during F.Y.2016-17 to the lender party. It is also important to mention here that the appellant has also deducted TDS on interest paid to the lender party. Thus, it is observed that the appellant has taken the unsecured loan and repaid the said amount with Interest after deducting relevant page of bank statement as under: 7.4 In this regard, It is also worthwhile to mention here that a search/survey action in the case of Banka Group was conducted on 21.05.2018. However, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in appeal before us raising the following Grounds of Appeal: 1) In the facts and on the circumstances of the case and in law, the ld. CIT(A) has erred in deleting the addition of Rs 1,25,00,000/- on account of unexplained cash credit u/s. 68 of the home Tax Act towards unsecured loan from paper company M/s. Gurumukh Mercantile Pvt. Ltd. 2)" the facts and on the circumstances of the case and in law, the ld. CIT(A) has ignored the facts of the case that Gurumukh Mercantile Pvt. Ltd. was not engaged in the real business and do not have creditworthiness to lend such huge amount in Assessee Company'. 3) "In the facts and on the circumstances of the case and in law, the ld. CIT(A) has failed to appreciate the fact us mentioned in assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) "The Revenue craves leave to add/alter/armed and/or substitute any or all of the grounds of appeal" 6. Heard rival submissions at length and perused the materials available on record including the Paper Books filed by the assessee. As far as unsecured creditors of M/s. Gurumukh Mercantile Pvt. Ltd. the assessee paid interest of Rs. 6,79,314/- as on 31-03-2018 with appropriate TDS of Rs. 67,931/-. Website copy of the Ministry of Corporate Affairs in the name of M/s. Gurumukh Mercantile Pvt. clearly shown it's an active company and the last AGM held on 16-08-2023 and the company status is shown as "active" by Registrar of Companies, Kolkata. 6.1. The Ld. Sr. D.R. appearing for the Revenue could not dispute the above facts and the findi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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