ITO WD 11(1)(4), MUMBAI vs. UZURI JEWELS P.LTD, MUMBAI

This appeal has arisen on account of the decision of co- ordinate Bench passed in Misc. Application No.120/Mum/2021 in No.3 of the appeal of the assessee was acquired to be decided afresh. 02. The ground No.3 of the appeal reads as under: M/s UTI Institute of Capital Markets; AY 12-13 “3. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in deleting the addition of ₹5,85,000/- constituting interest on bogus loans and advances made by the AO without appreciating the fact that the entry of these unsecured loans and advances in the books of accounts are bogus accommodation entries which has been provided by Mr. Bhanwarlal Jain Group in Financial Year 2009-10 pertaining to AY 2010-11.”

The learned Departmental Representative on this issue vehemently supported the orders of the learned Assessing Officer by referring to paragraph No. 10, wherein the addition of unsecured loan and advances and principle amount of Rs 65,00,000/- along with interest of Rs 585,000/- was made in the hands of the assessee amounting to ₹70,85,000/-. He referred to the order of the learned CIT(A) on page No s. 19 and 20 where he decided ground No. 10 of the appeal. He deleted the addition of Rs.65 lacs as principle sum and interest disallowance of Rs. 5,85,000/- thereon. He submitted that the principle sum has been added twice in two different assessment years , i.e. once in Assessment Years 2010- 11 and second time in AY 2012-13. Therefore, the principle addition was deleted as it could not have been made twice. He submitted that however with respect to the interest pertaining to those loans in this year i.e. AY 2012-13, the same deserves to be disallowed in the hands M/s UTI Institute of Capital Markets; AY 12-13 of the assessee. He submitted that the learned CIT(A) has incorrectly deleted the sum.