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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: SHRI MAHAVIR PRASAD & SHRI AMARJIT SINGH
PER MAHAVIR PRASAD, JUDICIAL MEMBER
This appeal filed by the Assessee is directed against the order of the Ld. CIT(A)-1, Ahmedabad dated 22.12.2017 pertaining to A.Y. 2009-10 and following grounds have been taken:
2 . A.Y. 2009-10 1. The Ld. CIT[A] is unjustified and has erred in law & fact by confirming the addition of Rs. 10.00 lacs made by AO, for loan taken by appellant from Triangular Infocom Ltd. through banking channels; a) Treating same as bogus loan and unexplained cash credit u/s. 68 of the I,T. Act, based on suspicion, without giving any finding/material/evidence or providing opportunity of cross examination; b) The Ld. AO has not dealt with objections of the company to the issuance of notice u/s. 148 proposing re-assessment, based on the material gathered from third party, which has no nexus to the appellant; c) The satisfaction recorded for re-opening the assessment is undated & recorded by predecessor AO, founded on the letter received from Pr. DIT(lnv.), Ahmedabad.
2. The appellant craves a leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.
Facts of the case are that the Investigation Wing of the Revenue forwarded the information that a search u/s.132 of the I.T. Act was conducted in the case of Shri Pravin Kumar Jain. The search action resulted in collection of evidence and other findings which conclusively proved that shri Pravin Kumar Jain is engaged in providing accommodation entries of various natures like unsecured loans, bogus share application/capital and bogus sales and purchases to the beneficiaries spread throughout India. M/s. Bombay Tablets Manufacturing Co. Pvt. Ltd. is engaged in unexplained transaction with Triangular Infocom Ltd - a bogus concern operated by Shri Pravin Kumar Jain. On the basis of above mentioned fact, I have reason to believe that there is an escapement of income more than Rs. 1.00 lac in the case of the above assessee and the case is therefore, required to be reopened u/s. 147 of the IT Act by way of issuing notice u/s. 148 of the IT Act."
Thereafter on the basis of the information received from the Investigation Wing, ld. A.O. issued a notice to the assessee wherein assessee stated that it has not taken any accommodation entry rather he has taken loan of Rs. 10 lacs was 3 . A.Y. 2009-10 taken from Triangular Infocom Ltd. But lower authorities were not agreed with the contention of the assessee and made addition of Rs. 10 lacs made and confirmed by the ld. CIT(A).
Now assessee has come before us and stated that the assessee company has availed loan of Rs. 10 lacs from Triangular Infocom Ltd. on 13.03.2009 through banking channel and in support of its contention, assessee filed copy of ledger account, copies of bank statement and copies of annual report balance sheet and profit and loss account with all Schedule and Annexure for assessment year 2009-10 with copy of PAN Card and same are part of paper book at Page no. 29 & 30. And thereafter loan was repaid through the banking channel on 23.02.2011 and details have been submitted before the lower authorities and same are part of paper book.
Thus, in our considered opinion, assessee has discharged its onus and submitted all the relevant proof such as details of loan via through banking channels to the lower authorities and in such case addition cannot be sustained.
In the result, appeal filed by the Assessee is allowed. .
Order pronounced in Open Court on 19 - 02- 2020