DCIT, CIRCLE - 4(2), KOLKATA , KOLKATA vs. M/S. R.M. COMMERCIAL PVT. LTD., , KOLKATA

ORDER Per Shri A.T.Varkey, JM A.T.Varkey, JM These appeals filed by the filed by the revenue are directed against the separate but identical separate but identical orders of the ld. Commissioner of Income Tax (Appeals) of the ld. Commissioner of Income Tax (Appeals) – 2, Kolkata, (hereinafter the ‘ld. , (hereinafter the ‘ld. CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), CIT (A)’), passed u/s 250 of the Income Tax Act, 1961 (the ‘Act’), both both dt. 12.12.2017, for the Assessment Years 2012 2012-13 & 2013-14.

2. The grounds of appeal

The grounds of appeal raised by the revenue for the Assessment Year 2012 raised by the revenue for the Assessment Year 2012-13 is as under:- “1. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) That on the facts and in circumstances of the case and in law, the Ld. CIT(A) That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in deleting a sum of Rs.10 has erred in deleting a sum of Rs.10,65,32,302/- representing the alleged unsecured representing the alleged unsecured loan received by the assessee. loan received by the assessee.

2. That on the facts and in the circumstances of the case and in law, the Ld. That on the facts and in the circumstances of the case and in law, the Ld. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in appreciating the facts that the assessee has failed to file any details CIT(A) has erred in appreciating the facts that the assessee has failed to file any details CIT(A) has erred in appreciating the facts that the assessee has failed to file any details or documents as regard to receipt of alleged unsecured loan of Rs.10,65,32,302/ ments as regard to receipt of alleged unsecured loan of Rs.10,65,32,302/ ments as regard to receipt of alleged unsecured loan of Rs.10,65,32,302/- substantiating the creditworthiness and genuineness of the transaction in original substantiating the creditworthiness and genuineness of the transaction in original substantiating the creditworthiness and genuineness of the transaction in original assessment proceedings and also in remand proceedings. assessment proceedings and also in remand proceedings.

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd.

3. That on the facts and in the circumstance That on the facts and in the circumstances of the case and in law, the ld. CIT(A) s of the case and in law, the ld. CIT(A) has erred in deleting the addition of a sum of Rs.33,70,549/ has erred in deleting the addition of a sum of Rs.33,70,549/- u/s 14A read with Rule 8D u/s 14A read with Rule 8D ignoring the essence of CBDT’s Circular No. 5/2014 dated 11.02.2014. ignoring the essence of CBDT’s Circular No. 5/2014 dated 11.02.2014. ignoring the essence of CBDT’s Circular No. 5/2014 dated 11.02.2014.

4. That the appellant craves for leave to add, delete, ame That the appellant craves for leave to add, delete, amend or modify any ground nd or modify any ground before or at the time of appellate proceedings.” before or at the time of appellate proceedings.”

The grounds of appeal raised by the revenue for the Assessment Year 2013 The grounds of appeal raised by the revenue for the Assessment Year 2013 The grounds of appeal raised by the revenue for the Assessment Year 2013-14 read as under:-

“1. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in deleting a sum of Rs. 1,42,95,699/ d in deleting a sum of Rs. 1,42,95,699/- representing the alleged amounts received representing the alleged amounts received by the assessee as inter ssee as inter-corporate deposit.

2. That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has erred in appreciating the facts that the erred in appreciating the facts that the assessee failed to file any details or documents assessee failed to file any details or documents as regard to receipt of alleged deposits of Rs. 1,42,95,699/ as regard to receipt of alleged deposits of Rs. 1,42,95,699/- in original assessment in original assessment proceedings and also in remand proceedings and also in remand proceedings.

3. That on the facts and in circumstances of the case and in law, the Ld. CI That on the facts and in circumstances of the case and in law, the Ld. CI That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in considering the ingredients of Section 68 of the Act on account of corporate erred in considering the ingredients of Section 68 of the Act on account of corporate erred in considering the ingredients of Section 68 of the Act on account of corporate deposits of Rs. 1,42,95,699/ deposits of Rs. 1,42,95,699/-".

4. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in deleting a sum of Rs.1 erred in deleting a sum of Rs.1,30,00,000/- representing the alleged amounts epresenting the alleged amounts received by the assessee during the relevant financial year by the assessee during the relevant financial year. 5. "That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has 5. "That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has 5. "That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has erred in appreciating the facts that the assessee failed to file any det erred in appreciating the facts that the assessee failed to file any det erred in appreciating the facts that the assessee failed to file any details or documents as regard to receipt of alleged deposits of Rs. as regard to receipt of alleged deposits of Rs. 1,30,00,000/- in original assessment in original assessment proceedings and also in remand proceedings". proceedings and also in remand proceedings". 6. "That on the facts and in circumstances of the case and in law, the Ld. CIT(A) 6. "That on the facts and in circumstances of the case and in law, the Ld. CIT(A) 6. "That on the facts and in circumstances of the case and in law, the Ld. CIT(A) haserred in deleting a su haserred in deleting a sum of Rs. 16,20,000/- on account of trade payables". on account of trade payables". 7. "That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has 7. "That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has 7. "That on the facts and in the circumstance of the case and in law, the Ld. CIT(A) has erred in appreciating the facts that the assessee failed to file any details or documents erred in appreciating the facts that the assessee failed to file any details or documents erred in appreciating the facts that the assessee failed to file any details or documents as regard to trade payables of Rs. 16,20,000/ payables of Rs. 16,20,000/- in original assessment proceedings and in original assessment proceedings and also in remand proceedings". also in remand proceedings".

8. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has 8. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has 8. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition a sum of Rs.95,65,382/ erred in deleting the addition a sum of Rs.95,65,382/- u/s 14A read with Ru u/s 14A read with Rule 8D ignoring the essence of CBDT’s Circular No. 5/2014 dated 11.02.2014. ignoring the essence of CBDT’s Circular No. 5/2014 dated 11.02.2014. ignoring the essence of CBDT’s Circular No. 5/2014 dated 11.02.2014. 9.That the appellant craves for leave to add, delete, amend or modify any ground before 9.That the appellant craves for leave to add, delete, amend or modify any ground before 9.That the appellant craves for leave to add, delete, amend or modify any ground before or at the time of appellate proceedings.” or at the time of appellate proceedings.”

4. Aggrieved the assessee preferred an appeal before the ld. CIT(A), who was pleased Aggrieved the assessee preferred an appeal before the ld. CIT(A), who was pleased Aggrieved the assessee preferred an appeal before the ld. CIT(A), who was pleased to delete the same as well as similar addition made for AY 2013 as well as similar addition made for AY 2013-14 which was also 14 which was also deleted. 5. Aggrieved by the action of Ld. CIT(A) to delete the addition made by the by the action of Ld. CIT(A) to delete the addition made by the by the action of Ld. CIT(A) to delete the addition made by the AO for both the assessment years, the revenue is in appeal before us by preferring Ground Nos. 1 , the revenue is in appeal before us by preferring Ground Nos. 1 , the revenue is in appeal before us by preferring Ground Nos. 1 & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. & 2 for AY 2012-13(supra) (supra) and ground nos. 1 to 5 for AY 2013-14 . The ld DR assailing The ld DR assailing the action of Ld CIT(A) contended that the first appellate authority has the action of Ld CIT(A) contended that the first appellate authority has the action of Ld CIT(A) contended that the first appellate authority has given relief to the assessee without any material and is a perverse order, which need to be interfered and assessee without any material and is a perverse order, which need to be interfered and assessee without any material and is a perverse order, which need to be interfered and reversed. Per-contra, the ld AR supported the decision of the Ld CIT(A) and does not want contra, the ld AR supported the decision of the Ld CIT(A) and does not want contra, the ld AR supported the decision of the Ld CIT(A) and does not want us to interfere.

Op. Bal as Recd. Repaid Interest for TDS Cl. Balance as on During the during the the year on 31.03.2012 01.04.11 year year 1,67,45,422 19,80,62,238 11,06,89,479 33,70,549 3,37,055 10,71,81,675

8. In addition to the above In addition to the above documents, the assessee company also submitted its own also submitted its own bank statement evidencing the receipt of the said sum in its account. Thus, according to the bank statement evidencing the receipt of the said sum in its account. Thus, according to the bank statement evidencing the receipt of the said sum in its account. Thus, according to the assessee it was clearly demonstrated before the Assessing Officer that all the s clearly demonstrated before the Assessing Officer that all the s clearly demonstrated before the Assessing Officer that all the payments/borrowings were made by account payee cheques drawn on their respective payments/borrowings were made by account payee cheques drawn on their respective payments/borrowings were made by account payee cheques drawn on their respective bankers showing genuineness of the transactions. bankers showing genuineness of the transactions. According to assessee, b According to assessee, by filing the Income-Tax Return acknow Tax Return acknowledgements of the lenders, it was able to demonstrate before t was able to demonstrate before the Assessing Officer that all the lenders were regularly assessed to Income the Assessing Officer that all the lenders were regularly assessed to Income the Assessing Officer that all the lenders were regularly assessed to Income-Tax Department and the sum lent by them to the assessee has been duly and fully reflected in and the sum lent by them to the assessee has been duly and fully reflected in and the sum lent by them to the assessee has been duly and fully reflected in & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. their respective books of accounts as well as reflected in their bank records and accounts as well as reflected in their bank records and accounts as well as reflected in their bank records and thus their identity stands proved. Further, according to the assessee, b Further, according to the assessee, by filing the lenders’ source of y filing the lenders’ source of funds [certificate for the amount lent by them to the assessee certificate for the amount lent by them to the assessee] the lenders’ creditworthiness the lenders’ creditworthiness also stands established. Moreover, t Moreover, the genuineness of the transaction cannot be doubted genuineness of the transaction cannot be doubted because tax was deducted at source by the assessee while interest was paid to the lenders tax was deducted at source by the assessee while interest was paid to the lenders tax was deducted at source by the assessee while interest was paid to the lenders on the amount of loan taken by it on the amount of loan taken by it. It was pointed out to us that since the addr ince the address of the lender companies were furnished before the lender companies were furnished before the Assessing Officer, he could Assessing Officer, he could have independently verified the independently verified the veracity of the aforesaid facts. So, according to the assessee facts. So, according to the assessee by filing the aforesaid documents filing the aforesaid documents, it has completely discharged the obligation , it has completely discharged the obligation casted upon it u/s 68 of the Act to prov prove the identity, creditworthiness and genuineness of the the identity, creditworthiness and genuineness of the loan transaction.

9. However, according to Ld. AR, according to Ld. AR, the Assessing Officer without making any the Assessing Officer without making any independent enquiry after receipt of these documents had independent enquiry after receipt of these documents had contended contended that since the summons issued to the assessee company to the assessee company has been returned back by the postal authorities, the postal authorities, he drew an adverse inference against the he drew an adverse inference against the loan amount borrowed from the lending borrowed from the lending companies and made the addition. companies and made the addition. 10. It was also brought to our notice by brought to our notice by the ld. AR that the Assessing Officer issue the ld. AR that the Assessing Officer issued summons u/s 131 of the Act, to the Directors of the assessee company at the fag end of the summons u/s 131 of the Act, to the Directors of the assessee company at the fag end of the summons u/s 131 of the Act, to the Directors of the assessee company at the fag end of the assessment proceedings i.e., 04/03/2015 and the case was fixed for hearing on 16/03/2015 assessment proceedings i.e., 04/03/2015 and the case was fixed for hearing on 16/03/2015 assessment proceedings i.e., 04/03/2015 and the case was fixed for hearing on 16/03/2015 and thereafter the Assessing O and thereafter the Assessing Officer taking note that there was non-compliance on the date compliance on the date of hearing, has treated the entire amount of Rs.10,65,32,302/ of hearing, has treated the entire amount of Rs.10,65,32,302/- as unexplained cash credit as unexplained cash credit u/s 68 of the Act. He drew our attention to page 13 of the paper book, wherein the remand u/s 68 of the Act. He drew our attention to page 13 of the paper book, wherein the remand u/s 68 of the Act. He drew our attention to page 13 of the paper book, wherein the remand report filed by the Assessing Officer pursuant to the direction of the ld. CIT(A) is found the Assessing Officer pursuant to the direction of the ld. CIT(A) is found the Assessing Officer pursuant to the direction of the ld. CIT(A) is found placed wherein the Assessing Officer in the remand proceedings placed wherein the Assessing Officer in the remand proceedings has stated has stated as follows:- “Accordingly, summons u/s 131 was issued to the Directors of the assessee company on “Accordingly, summons u/s 131 was issued to the Directors of the assessee company on “Accordingly, summons u/s 131 was issued to the Directors of the assessee company on - 4-03-2015 and the case was fixed for hearing on 16 015 and the case was fixed for hearing on 16-03-2015. But there was no compliance 2015. But there was no compliance on the date of hearing. Under the circumstances, the amount of Rs.10.65.32.302/ on the date of hearing. Under the circumstances, the amount of Rs.10.65.32.302/ on the date of hearing. Under the circumstances, the amount of Rs.10.65.32.302/- was treated as cash credit u/s. 68 since the assessee failed to discharge the primary onus.” treated as cash credit u/s. 68 since the assessee failed to discharge the primary onus.” treated as cash credit u/s. 68 since the assessee failed to discharge the primary onus.” 11. Taking into consideration the aforesaid facts which happened during the assessment Taking into consideration the aforesaid facts which happened during the assessment Taking into consideration the aforesaid facts which happened during the assessment stage as well as the addition made by AO in respect of the loan taken by the assessee, we stage as well as the addition made by AO in respect of the loan taken by the assessee, we stage as well as the addition made by AO in respect of the loan taken by the assessee, we & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. note the following important facts which is given in the tabular form to apprec note the following important facts which is given in the tabular form to apprec note the following important facts which is given in the tabular form to appreciate the facts and figures involved on the issue at hand for both the assessment years before us. and figures involved on the issue at hand for both the assessment years before us. and figures involved on the issue at hand for both the assessment years before us.

Assessment Year 2012-2013 Details of Loans taken and repaid Sl. Party Name & PAN Opening Loan Interest TDS Loan Closing Closing No. Balance taken paid deduct repaid balance as balance as on during the ed during the during the on 31/03/19 year year 31/03/12 1. Deepak Pens & Plastics Pvt. -- 2500000 215753 21575 2694178 2694178 -- Repaid as on Ltd 31.3.12 PAN:AAACD9050G

3. -- 50,00,000 429041 42904 -- 5386137 Repaid as on Maharaja Vanijya Pvt. Ltd PAN:AAFCM3843B 31.3.19

4. Kokila Exports Pvt. Ltd -- 1,05,00000 552699 55270 -- 10997429 Repaid as on PAN:AABCK1178K 31.3.14

7. Dhoot Industrial & -- 7500000 9247 925 -- 7508322 Repaid as on Investment Co. Pvt. Ltd 31.3.19 PAN: AABCD1808R

8. Nidhi Agro Pvt. Ltd. 11294433 549370 54937 36988866 36988866 -- Repaid as on PAN:AAACN8759L 31.3.12 9 Shree Sudarshan Castings -- 10000000 209589 20959 10188630 10188630 188630 Repaid as on Pvt. Ltd 31.3.12 PAN:AADCS9429B 10 Dufflaghar Investment Pvt. -- 30000000 867946 86795 -- 30781151 Repaid as on Ltd 31.3.14 PAN:AAACD9587C

11. Midnight Agencies Pvt. Ltd -- 5000000 121918 12192 -- 5109726 Bal. remains PAN:AABCM6864G 12 Blackberry Goods Pvt. Ltd -- 13250000 -- -- -- 13250000 Repaid as on PAN:AADCB5112A 31.3.15 Total: 16745422 206556671 3370549 337055 123871674 123871674 107340305 Assessment Year 2013-2014 Details of ICD / unsecured loans Sl. Party Name & PAN Opening Loan Interest TDS Loan Loan Closing Closing No Balance taken paid deducte repaid repaid balance as balance as on . during the d during the during the on 31/03/19 year year 31/03/12 1. Amrithphal Tradelink Pvt. -- 1650000 12612 1261 -- 1661351 Repaid as on Ltd 19.7.19 PAN:AAICA12993 & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. 2. Maharava Vanijya Pvt. Ltd 5386137 -- 481684 48168 429041 429041 5390612 NA AAFCM3843B 3. Kokila Exports Pvt. Ltd 10997429 -- 960180 96018 4000000 4000000 7861591 NA PAN:AABCK1178K 4. Hexagon Commerce Pvt. Ltd. 808003 -- 72720 7272 -- 873451 NA PAN: AAACH6742D 5. K.B. Switchgear Pvt. Ltd 30073233 -- 2706591 270659 -- 32509165 NA PAN:AABCK2162K 6. Dhoot Industrial And 7508322 10000000 880407 88041 -- 18300688 Repaid as on Investment Co. Pvt. Ltd 31.3.19 PAN:AABCD1808R 7. Ishphan Realestates Pvt. Ltd -- 2000000 4932 -- -- 2004932 Repaid as on PAN:AABCI3872L 31.3.15 8. Mega Energy Equipment -- 1500000 3699 -- -- 1503699 Repaid as on Pvt. Ltd 31.3.14 PAN:AAFCM4480Q 9 Dufflaghur Investments Ltd 30781151 -- 3603082 360308 13781151 13781151 20242774 NA PAN:AAACD9587C 10 Midnight Agencies Pvt. Ltd 5109726 -- 459875 45987 -- 5523614 NA PAN:AABCM6864G 11. Motorex Finance Pvt. Ltd 3237674 -- 291391 29139 -- 3499926 NA PAN:AACCM1042R 12 Rudra Goods Pvt. Ltd -- 3800000 22932 2293 -- 3820639 Repaid as on PAN:AAECR0974R 31.3.19 13 Royalpet Traders Pvt. Ltd -- 5000000 4932 -- -- 5004932 Repaid as on 31.3.14 Total: 93901675 23950000 9505037 949146 949146 18210192 108197374 Details of Advances Repaid: 1. Asish Finance Ltd 13000000 - 10330 1034 13000000 13000000 -- Opening PAN:AAACE57774A balance repaid.

12. We note that the assessment order note that the assessment order for AY 2012-13 has been passed on 31/03/2015 has been passed on 31/03/2015 and for AY 2013-14 on 03.03.2016 on 03.03.2016. We note that though the assessee had filed the note that though the assessee had filed the following documents before the Assessin following documents before the Assessing Officer, he has drawn adverse inference against has drawn adverse inference against the assessee only on the reason that the Director of the assessee company did only on the reason that the Director of the assessee company did only on the reason that the Director of the assessee company did not present himself before him. We not . We note that for the Assessment Year 2012 -13, the following documents have been filed by the assessee before the Assessing Officer to substantiate the documents have been filed by the assessee before the Assessing Officer to substantiate the documents have been filed by the assessee before the Assessing Officer to substantiate the identity, creditworthiness and genuineness of the transactions tity, creditworthiness and genuineness of the transactions between the assessee and the between the assessee and the 12 (twelve) lender companies: ) lender companies:-

i) Copy of the return filing acknowledgement along with computation of income Copy of the return filing acknowledgement along with computation of income Copy of the return filing acknowledgement along with computation of income and audited accounts of the assessee for AY 2012 and audited accounts of the assessee for AY 2012-13. (Pg.17 (Pg.17-28 of the Paper Book) ii) Copy of the notice dated 3 Copy of the notice dated 3-06-2014 and 02-02-2015 issued by the AO during 2015 issued by the AO during assessment proceedings. assessment proceedings. (Pg.29-31 of the Paper Book)

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. iii) Copy of the reply dated 15 Copy of the reply dated 15-07-2014, 02-02-2015, 10-02-2015 and 23 2015 and 23-03-2015 filed by the assessee filed by the assessee before the Assessing Officer (Pg.32-38 of the Paper Book) 38 of the Paper Book) iv) Copy of the certificate of incorporation of the assessee company. Copy of the certificate of incorporation of the assessee company. Copy of the certificate of incorporation of the assessee company. (Pg.39 of the Paper Book) v) Copy of the summary of the compliance made before the AO by the assessee. Copy of the summary of the compliance made before the AO by the assessee. Copy of the summary of the compliance made before the AO by the assessee. (Pg. 40 of the Paper Book) (Pg. 40 of the Paper Book) vi) Details of the short term borrowings as on 31 Details of the short term borrowings as on 31-03-2012. (Pg. 41 of the Paper (Pg. 41 of the Paper Book) vii) Copy of the relevant bank statement of the assessee highlighting the loan Copy of the relevant bank statement of the assessee highlighting the loan Copy of the relevant bank statement of the assessee highlighting the loan received. (Pg.42 (Pg.42-47 of the Paper Book) viii) Copy of the return filing acknowledgement & audited accoun Copy of the return filing acknowledgement & audited accoun Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Deepak Pens & Plastics Pvt. Ltd., along with copy of loan creditor party namely Deepak Pens & Plastics Pvt. Ltd., along with copy of loan creditor party namely Deepak Pens & Plastics Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of of relevant bank statement reflecting the loan along with confirmation of of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012 accounts for AY 2012-13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01-04- 2012. (Pg.48-65 of the Paper Book) 2011 to 31-03-2012. ix) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Motorex Finance Pvt. Ltd along with copy of of loan creditor party namely Motorex Finance Pvt. Ltd along with copy of of loan creditor party namely Motorex Finance Pvt. Ltd along with copy of relevant bank statement reflecting the loan along w relevant bank statement reflecting the loan along with confirmation of accounts ith confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01-04-2011 to 31- 03-2019. (Pg.66 (Pg.66-86 of the Paper Book) x) Copy of the return filing acknowledgement, computation of income & audited Copy of the return filing acknowledgement, computation of income & audited Copy of the return filing acknowledgement, computation of income & audited accounts for AY 2012 accounts for AY 2012-13 of loan creditor party namely Maharaja Vanijya Pvt. loan creditor party namely Maharaja Vanijya Pvt. Ltd., along with Ltd., along with copy of relevant bank statement reflecting the loan along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012 confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the 13 and copy of the ledger accounts for the period 01-04-2011 to 31 2011 to 31-03-2019. (Pg.87-109 of the Paper Book) the Paper Book) xi) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Kokila Exports Pvt. Ltd., along with copy of reditor party namely Kokila Exports Pvt. Ltd., along with copy of reditor party namely Kokila Exports Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation statement reflecting the loan along with confirmation statement reflecting the loan along with confirmation of accounts for AY 2012-13 and 13 and copy of the ledger accounts for the period 01 iod 01-04-2011 to 31- 03-2014. (Pg. 110 (Pg. 110-131 of the Paper Book) xii) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Hexagon Commerce Pvt. Ltd., alo creditor party namely Hexagon Commerce Pvt. Ltd., alo creditor party namely Hexagon Commerce Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation o statement reflecting the loan along with confirmation o statement reflecting the loan along with confirmation of accounts for AY 2012-13 and 13 and copy of the ledger accounts for the period 01 copy of the ledger accounts for the period 01-04-2011 to 31- 03-2019 and letter filed be 2019 and letter filed before the AO by the party sub by the party submitting the details. (Pg.132-157 of the Paper Book) 157 of the Paper Book)

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. xiii) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely K.B. Switchgear Pvt. Ltd., along with copy of creditor party namely K.B. Switchgear Pvt. Ltd., along with copy of creditor party namely K.B. Switchgear Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts statement reflecting the loan along with confirmation of accounts statement reflecting the loan along with confirmation of accounts for AY 2012-13 and 13 and copy of the ledger accounts for the period 01 opy of the ledger accounts for the period 01-04-2011 to 31- 03-2019 and letter filed 2019 and letter filed before the AO by the party submitting the details. by the party submitting the details. (Pg.158-190 of the Paper Boo 190 of the Paper Book) xiv) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Dhoot Industrial & Investment Co. Pvt. Ltd., creditor party namely Dhoot Industrial & Investment Co. Pvt. Ltd., creditor party namely Dhoot Industrial & Investment Co. Pvt. Ltd., along with copy of along with copy of relevant bank statement reflecting the loan along with elevant bank statement reflecting the loan along with confirmation of confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the 13 and copy of the ledger accounts for the period 01-04-2011 to 31 2011 to 31-03-2019 and letter filed before the AO letter filed before the AO by the party submitting the details. submitting the details. (Pg. 191-225 of the Paper Book) xv) Copy of the return filing acknowledgement & audi Copy of the return filing acknowledgement & audited accounts for AY 2012 ted accounts for AY 2012-13 of loan creditor party namely Nidhi Agro Pvt. Ltd., along with copy of relevant creditor party namely Nidhi Agro Pvt. Ltd., along with copy of relevant creditor party namely Nidhi Agro Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY bank statement reflecting the loan along with confirmation of accounts for AY bank statement reflecting the loan along with confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01-04-2011 to 31-03- 2012. (Pg.226-243 of the Paper Book) 243 of the Paper Book) xvi) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Shree Sudarshan Casting Pvt. Ltd., along with copy of loan creditor party namely Shree Sudarshan Casting Pvt. Ltd., along with copy of loan creditor party namely Shree Sudarshan Casting Pvt. Ltd., along with copy of relevant bank statement refl bank statement reflecting the loan along with confirmation of n along with confirmation of accounts for AY 2012 accounts for AY 2012-13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01-04- 2011 to 31-03-2012 2012. (Pg.244-264 of the Paper Book) xvii) Copy of the audited accounts for AY 2012 Copy of the audited accounts for AY 2012-13 of loan creditor party namely 13 of loan creditor party namely Dufflaghar Investment Pvt. Ltd., along with confirmation of accounts for AY vestment Pvt. Ltd., along with confirmation of accounts for AY vestment Pvt. Ltd., along with confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01-04-2011 to 31-03- 2014. (Pg.265-286 of the Paper Book) 286 of the Paper Book) xviii) Copy of the return filing acknowledgement & audited accounts for AY 20 Copy of the return filing acknowledgement & audited accounts for AY 20 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Midnight Agencies Pvt. Ltd., along with copy of of loan creditor party namely Midnight Agencies Pvt. Ltd., along with copy of of loan creditor party namely Midnight Agencies Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts relevant bank statement reflecting the loan along with confirmation of accounts relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012-13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01 13 and copy of the ledger accounts for the period 01-04-2011 to 31-03-2019. (P (Pg. 287-312 of the Paper Book) xix) Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012 Copy of the return filing acknowledgement & audited accounts for AY 2012-13 of loan creditor party namely Blackberry Goods Pvt. Ltd., along with copy of of loan creditor party namely Blackberry Goods Pvt. Ltd., along with copy of of loan creditor party namely Blackberry Goods Pvt. Ltd., along with copy of relevant bank statement refl statement reflecting the loan along with confir ecting the loan along with confirmation of accounts for AY 2012-13 and 13 and copy of the ledger accounts for the period 01 opy of the ledger accounts for the period 01-04-2011 to 31- 03-2015 and letter filed before the A 2015 and letter filed before the AO by the party submitting the details. party submitting the details. (Pg.313-331 of the Paper Book) 331 of the Paper Book)

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd.

i) Copy of the return filing acknowledgement along with computation of income Copy of the return filing acknowledgement along with computation of income Copy of the return filing acknowledgement along with computation of income and audited accounts of the assessee for AY 201 and audited accounts of the assessee for AY 2013-14. (Pg. (Pg. 19-31 of the Paper Book) ii) Copy of the notice dated 02 Copy of the notice dated 02-02-2015 and 30-06-2015 issued by the AO during issued by the AO during assessment proceedings. assessment proceedings. (Pg. 32-33 of the Paper Book) iii) Copy of the reply dated 1 Copy of the reply dated 13-02-2015, Nil, 23-03-2015, 30- -07-2015 and 31-07- 2015 filed by the assessee before the Assessing Officer 2015 filed by the assessee before the Assessing Officer (Pg. (Pg. 34-43 of the Paper Book) iv) Copy of the summons dat summons dated 24-11-2015 & 18-02-2016 issued to the assessee 2016 issued to the assessee (Pg. 44-45 of the Paper Book) 45 of the Paper Book) v) Copy of the reply dated 02 Copy of the reply dated 02-03-2016 filed by the assessee complying to the 2016 filed by the assessee complying to the summons issued u/s 131 by the AO summons issued u/s 131 by the AO. (Pg. 46 of the Paper Book) of the Paper Book) vi) Details of unsecured loan with Details of unsecured loan with the full names and address of the parties along the full names and address of the parties along with their PAN No with their PAN No. (Pg. 47 of the Paper Book) vii) Copy of the confirmation of accounts in respect of all the 13 unsecured loan Copy of the confirmation of accounts in respect of all the 13 unsecured loan Copy of the confirmation of accounts in respect of all the 13 unsecured loan parties for AY 2013 parties for AY 2013-14. (Pg.48-60 of the Paper Book) viii) Copy of the return filing ack Copy of the return filing acknowledgement & audited accounts for AY 2013 ccounts for AY 2013-14 of loan creditor party namely creditor party namely Amrithphal Tradelink Pvt. Ltd., along with copy of Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of relevant bank statement reflecting the loan along with confirmation of relevant bank statement reflecting the loan along with confirmation of accounts for AY 2012 accounts for AY 2012-13 and copy of the ledger accounts for the period 01 for the period 01-04- 2012 to 31-03-201 2019. (Pg. 61-76 of the Paper Book) ix) Copy of the return filing acknowledgement & audited accounts for AY 201 Copy of the return filing acknowledgement & audited accounts for AY 201 Copy of the return filing acknowledgement & audited accounts for AY 2013-14 of loan creditor party namely of loan creditor party namely Ishphan Real Estates Pvt. Ltd along with copy of Pvt. Ltd along with copy of relevant bank statement reflecting the loan along with confirmation of accounts relevant bank statement reflecting the loan along with confirmation of accounts relevant bank statement reflecting the loan along with confirmation of accounts for AY 2013-14 and copy of the ledger accounts for the period 01 and copy of the ledger accounts for the period 01 and copy of the ledger accounts for the period 01-04-2011 to 31- 03-2015. (Pg.77 77-126 of the Paper Book) x) Copy of the return filing Copy of the return filing acknowledgement, computation of income & audited acknowledgement, computation of income & audited accounts for AY 201 accounts for AY 2013-14 of loan creditor party namely Mega Energy Pvt. Ltd., Mega Energy Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with along with copy of relevant bank statement reflecting the loan along with along with copy of relevant bank statement reflecting the loan along with & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. confirmation of accounts for AY 201 confirmation of accounts for AY 2013-14 and copy of the ledger accounts for the the ledger accounts for the period 01-04-201 2012 to 31-03-2014. (Pg. 144-154 of the Paper Book) of the Paper Book) xi) Copy of the return filing acknowledgement & audited accounts for AY 201 Copy of the return filing acknowledgement & audited accounts for AY 201 Copy of the return filing acknowledgement & audited accounts for AY 2013-14 of loan creditor party namely of loan creditor party namely Rudra Goods Pvt. Ltd., along with copy of rele Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts for AY bank statement reflecting the loan along with confirmation of accounts for AY bank statement reflecting the loan along with confirmation of accounts for AY 2013-14 and copy of the ledger accounts for the period 01 and copy of the ledger accounts for the period 01 and copy of the ledger accounts for the period 01-04-2012 to 31-03- 2019. (Pg. 155-170 170 of the Paper Book) xii) Copy of the return filing acknowledgement & Copy of the return filing acknowledgement & audited accounts for AY 201 audited accounts for AY 2013-14 of loan creditor party namely of loan creditor party namely Royalpet Traders Pvt. Ltd., along with copy of relevant bank statement reflecting the loan along with confirmation of accounts relevant bank statement reflecting the loan along with confirmation of accounts relevant bank statement reflecting the loan along with confirmation of accounts for AY 2013-14 and copy of the ledger accounts for the period 01 and copy of the ledger accounts for the period 01 and copy of the ledger accounts for the period 01-04-2012 to 31- 03-2014 and letter filed before the AO by the party submitting the details. and letter filed before the AO by the party submitting the details. and letter filed before the AO by the party submitting the details. (Pg. 171-194 of the Paper Book) of the Paper Book) xiii) Details of advances received of Rs.1,30,00,000/ Details of advances received of Rs.1,30,00,000/- and details of trade payable of and details of trade payable of Rs.16,20,000/- for AY 2012 for AY 2012-13. (Pg. 195 of the Paper Book) xiv) Copy of the return filing acknowledgement along with audited accounts of Copy of the return filing acknowledgement along with audited accounts of Copy of the return filing acknowledgement along with audited accounts of Ashish Finance Pvt. Ltd. for AY 2013 Ashish Finance Pvt. Ltd. for AY 2013-14 along with copy of the relevant bank 14 along with copy of the relevant bank statement highlighting the advance of Rs.1,30,00,000/ statement highlighting the advance of Rs.1,30,00,000/- paid by the party along paid by the party along with ledger accounts for the period 1 with ledger accounts for the period 1-04-2012 to 31-03-2014. 2014. (Pg. 196-220 of the Paper Book) the Paper Book) xv) Copy of the invoice dated 15 Copy of the invoice dated 15-03-2013 of Rs.16,20,000/- against trade payable in against trade payable in the name of Dhoot Infrastructure Projects Ltd. against sale of equity s the name of Dhoot Infrastructure Projects Ltd. against sale of equity s the name of Dhoot Infrastructure Projects Ltd. against sale of equity shares along with copy of the ledger accounts for the period 01 along with copy of the ledger accounts for the period 01-04- -2012 to 31-03-2013. (Pg. 221-222 of the Paper Book) 222 of the Paper Book)

16. Taking note of th Taking note of the aforesaid documents the Ld. CIT(A) was of the opinion that e aforesaid documents the Ld. CIT(A) was of the opinion that assessee had discharged its onus to prove the identity, creditworthiness and genuineness of assessee had discharged its onus to prove the identity, creditworthiness and genuineness of assessee had discharged its onus to prove the identity, creditworthiness and genuineness of the lender companies and had deleted the addition made u/s. 68 of the Act. Before we the lender companies and had deleted the addition made u/s. 68 of the Act. Before we the lender companies and had deleted the addition made u/s. 68 of the Act. Before we adjudicate as to whether the Ld. CIT(A)’s action is right or erroneous, let us look at section whether the Ld. CIT(A)’s action is right or erroneous, let us look at section whether the Ld. CIT(A)’s action is right or erroneous, let us look at section 68 of the Act and the judicial precedents on the issue at hand. 68 of the Act and the judicial precedents on the issue at hand.

"68. Where any sum is found credited in the books of an assessee maintained for any previous year, "68. Where any sum is found credited in the books of an assessee maintained for any previous year, "68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation and the assessee offers no explanation about the nature and source thereof or the explanation and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year. " tax as the income of the assessee of that previous year. " tax as the income of the assessee of that previous year. " The phraseology of section 68 is clear. The Legislature has laid down that in the absence of The phraseology of section 68 is clear. The Legislature has laid down that in the absence of The phraseology of section 68 is clear. The Legislature has laid down that in the absence of a satisfactory explanation, the unexplained a satisfactory explanation, the unexplained cash credit may be charged to income cash credit may be charged to income-tax as the income of the assessee of that income of the assessee of that previous year. In this case the legislative mandat legislative mandate is not in terms of the words ‘shall shall’ be charged to income-tax as the income of the assessee of that tax as the income of the assessee of that previous year". The Supr previous year". The Supreme Court while interpreting similar phraseology used in section eme Court while interpreting similar phraseology used in section 69 has held that in creating the 69 has held that in creating the legal fiction the phraseology employs the word "may" and fiction the phraseology employs the word "may" and not "shall". Thus the un not "shall". Thus the un-satisfactoriness of the explanation does not and need not satisfactoriness of the explanation does not and need not automatically result in deeming the amount credited in the books as the income of the lt in deeming the amount credited in the books as the income of the lt in deeming the amount credited in the books as the income of the assessee as held by the Supreme Court in the case of CIT v. Smt. P. K. Noorjahan [1999] the Supreme Court in the case of CIT v. Smt. P. K. Noorjahan [1999] the Supreme Court in the case of CIT v. Smt. P. K. Noorjahan [1999] 237 ITR 570. We note that a We note that against the said decision of Hon'ble Gujarat High Court the gainst the said decision of Hon'ble Gujarat High Court the special leave petition filed by the petition filed by the Revenue has also been dismissed by the Hon'ble Apex has also been dismissed by the Hon'ble Apex Court.

"Merely because summons issued to some of the creditors could not be served or they failed "Merely because summons issued to some of the creditors could not be served or they failed "Merely because summons issued to some of the creditors could not be served or they failed to attend before the Assessing Officer, cannot be a ground to treat t to attend before the Assessing Officer, cannot be a ground to treat t to attend before the Assessing Officer, cannot be a ground to treat the loans taken by the assessee from those creditors as non assessee from those creditors as non-genuine in view of the principles laid down by the genuine in view of the principles laid down by the Supreme Court in the case of Orissa Corporation [1986] 159 ITR 78. In the said decision the Supreme Court in the case of Orissa Corporation [1986] 159 ITR 78. In the said decision the Supreme Court in the case of Orissa Corporation [1986] 159 ITR 78. In the said decision the Supreme Court has observed that when the assessee furn Supreme Court has observed that when the assessee furnishes names and addresses of the ishes names and addresses of the alleged creditors and the GIR numbers, the burden shifts to the Department to establish the alleged creditors and the GIR numbers, the burden shifts to the Department to establish the alleged creditors and the GIR numbers, the burden shifts to the Department to establish the Revenue's case and in order to sustain the addition the Revenue has to pursue the enquiry Revenue's case and in order to sustain the addition the Revenue has to pursue the enquiry Revenue's case and in order to sustain the addition the Revenue has to pursue the enquiry and to establish the lack of creditworthi and to establish the lack of creditworthiness and mere non-compliance of summons issued by ness and mere non-compliance of summons issued by the Assessing Officer under section 131, by the alleged creditors will not be sufficient to the Assessing Officer under section 131, by the alleged creditors will not be sufficient to the Assessing Officer under section 131, by the alleged creditors will not be sufficient to draw and adverse inference against the assessee. in the case of six creditors who appeared draw and adverse inference against the assessee. in the case of six creditors who appeared draw and adverse inference against the assessee. in the case of six creditors who appeared before the Assessing Of before the Assessing Officer and whose statements were recorded by the Assessing Officer, ficer and whose statements were recorded by the Assessing Officer, they have admitted having advanced loans to the assessee by account payee cheques and in they have admitted having advanced loans to the assessee by account payee cheques and in they have admitted having advanced loans to the assessee by account payee cheques and in case the Assessing Officer was not satisfied with the cash amount deposited by those case the Assessing Officer was not satisfied with the cash amount deposited by those case the Assessing Officer was not satisfied with the cash amount deposited by those creditors in their bank accounts, the proper course would have been to make assessments in eir bank accounts, the proper course would have been to make assessments in eir bank accounts, the proper course would have been to make assessments in the cases of those creditors by' treating the cash deposits in their bank accounts as the cases of those creditors by' treating the cash deposits in their bank accounts as the cases of those creditors by' treating the cash deposits in their bank accounts as unexplained investments of those creditors under section 69 unexplained investments of those creditors under section 69 19. In the case of Nemi Chand Kot In the case of Nemi Chand Kothari 136 Taxman 213, (supra), the Hon'ble Guaha hari 136 Taxman 213, (supra), the Hon'ble Guahati High Court has thrown light on another aspect touching thrown light on another aspect touching the issue of the issue of onus on assessee under section 68, by holding that the same should be decided by taking into consideration the section 68, by holding that the same should be decided by taking into consideration the section 68, by holding that the same should be decided by taking into consideration the provision of section 106 of provision of section 106 of the Evidence Act which says that a person can be required to the Evidence Act which says that a person can be required to prove only such facts which are in his knowledge. The Hon'ble Court in the said case held prove only such facts which are in his knowledge. The Hon'ble Court in the said case held prove only such facts which are in his knowledge. The Hon'ble Court in the said case held that, once it is found that an assessee has actually taken money from depositor that, once it is found that an assessee has actually taken money from depositor that, once it is found that an assessee has actually taken money from depositor/lender who has been fully identified, the assessee/borrower cannot be called upon to explain, much less y identified, the assessee/borrower cannot be called upon to explain, much less y identified, the assessee/borrower cannot be called upon to explain, much less prove the affairs of such third party, which he is prove the affairs of such third party, which he is not even supposed to know or about which ot even supposed to know or about which he cannot be held to be accredited with any knowledge. In this view, the Hon'ble Cou he cannot be held to be accredited with any knowledge. In this view, the Hon'ble Cou he cannot be held to be accredited with any knowledge. In this view, the Hon'ble Court has & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. laid down that section 68 of Income laid down that section 68 of Income-tax Act, should be read along with section 106 of tax Act, should be read along with section 106 of Evidence Act. The relevant observations at page 260 to 262, 264 and 265 of the Evidence Act. The relevant observations at page 260 to 262, 264 and 265 of the Evidence Act. The relevant observations at page 260 to 262, 264 and 265 of the order are reproduced herein below: reproduced herein below:-

"While interpreting the meaning and scope of se "While interpreting the meaning and scope of section 68, one has to bear in mind that ction 68, one has to bear in mind that normally, interpretation of a statute shall be general, in nature, subject only to such normally, interpretation of a statute shall be general, in nature, subject only to such normally, interpretation of a statute shall be general, in nature, subject only to such exceptions as may be logically permitted by the statute itself or by some other law connected exceptions as may be logically permitted by the statute itself or by some other law connected exceptions as may be logically permitted by the statute itself or by some other law connected therewith or relevant thereto. Keep therewith or relevant thereto. Keeping in view these fundamentals of interpretation of statutes, ing in view these fundamentals of interpretation of statutes, when we read carefully the provisions of section 68, we notice nothing in section 68 to show when we read carefully the provisions of section 68, we notice nothing in section 68 to show when we read carefully the provisions of section 68, we notice nothing in section 68 to show that the scope of the inquiry under section 68 by the Revenue Department shall remain that the scope of the inquiry under section 68 by the Revenue Department shall remain that the scope of the inquiry under section 68 by the Revenue Department shall remain confined to the transactions, which have taken place between the assessee and the creditor transactions, which have taken place between the assessee and the creditor transactions, which have taken place between the assessee and the creditor nor does the wording of section 68 indicate that section 68 does not authorize the Revenue nor does the wording of section 68 indicate that section 68 does not authorize the Revenue nor does the wording of section 68 indicate that section 68 does not authorize the Revenue Department to make inquiry into the source(s) of the credit and/or sub Department to make inquiry into the source(s) of the credit and/or sub Department to make inquiry into the source(s) of the credit and/or sub-creditor. The language employed by section 68 cannot be read to impose such limitations on the powers of the employed by section 68 cannot be read to impose such limitations on the powers of the employed by section 68 cannot be read to impose such limitations on the powers of the Assessing Officer. The logical conclusion, therefore, has to be, and we hold that an inquiry Assessing Officer. The logical conclusion, therefore, has to be, and we hold that an inquiry Assessing Officer. The logical conclusion, therefore, has to be, and we hold that an inquiry under section 68 need not necessarily be kept confined by the Assessing under section 68 need not necessarily be kept confined by the Assessing under section 68 need not necessarily be kept confined by the Assessing Officer within the transactions, which took place between the assessee and his creditor, but that the same may transactions, which took place between the assessee and his creditor, but that the same may transactions, which took place between the assessee and his creditor, but that the same may be extended to the transactions, which have taken place between the creditor and his sub be extended to the transactions, which have taken place between the creditor and his sub be extended to the transactions, which have taken place between the creditor and his sub- creditor. Thus, while the Assessing Officer is under sec creditor. Thus, while the Assessing Officer is under section 68, free to look into the source(s) tion 68, free to look into the source(s) of the creditor and/or of the sub of the creditor and/or of the sub-creditor, the burden on the assessee under section 68 is creditor, the burden on the assessee under section 68 is definitely limited. This limit has been imposed by section 106 of the Evidence Act which reads definitely limited. This limit has been imposed by section 106 of the Evidence Act which reads definitely limited. This limit has been imposed by section 106 of the Evidence Act which reads as follows: "Burden of proving fact especially within knowledge. ng fact especially within knowledge.-When any fact is especially within the When any fact is especially within the knowledge of any person, the burden) of proving that fact is upon him. " knowledge of any person, the burden) of proving that fact is upon him. " knowledge of any person, the burden) of proving that fact is upon him. " ******** What, thus, transpires from the above discussion is that white section 106 of the Evidence Act What, thus, transpires from the above discussion is that white section 106 of the Evidence Act What, thus, transpires from the above discussion is that white section 106 of the Evidence Act limits the onus of the assessee to the extent of his proving the source from which he has mits the onus of the assessee to the extent of his proving the source from which he has mits the onus of the assessee to the extent of his proving the source from which he has received the cash credit, section 68 gives ample freedom to the Assessing Officer to make received the cash credit, section 68 gives ample freedom to the Assessing Officer to make received the cash credit, section 68 gives ample freedom to the Assessing Officer to make inquiry not only into the source(s)of the creditor but also of his (creditor's inquiry not only into the source(s)of the creditor but also of his (creditor's inquiry not only into the source(s)of the creditor but also of his (creditor's) sub-creditors and prove, as a result, of such inquiry, that the money received by the assessee, in the form of loan prove, as a result, of such inquiry, that the money received by the assessee, in the form of loan prove, as a result, of such inquiry, that the money received by the assessee, in the form of loan from the creditor, though routed through the sub from the creditor, though routed through the sub-creditors, actually belongs to, or was of, the creditors, actually belongs to, or was of, the assessee himself. In other words, while se assessee himself. In other words, while section 68 gives the liberty to the Assessing Officer to ction 68 gives the liberty to the Assessing Officer to enquire into the source/source from where the creditor has received the money, section 106 enquire into the source/source from where the creditor has received the money, section 106 enquire into the source/source from where the creditor has received the money, section 106 makes the assessee liable to disclose only the source(s) from where he has himself received the makes the assessee liable to disclose only the source(s) from where he has himself received the makes the assessee liable to disclose only the source(s) from where he has himself received the credit and IT is not the burden of the assessee to prove the creditworthiness of the source(s) of is not the burden of the assessee to prove the creditworthiness of the source(s) of is not the burden of the assessee to prove the creditworthiness of the source(s) of the sub-creditors. If section 106 and section 68 are to stand together, which they must, then, the sub-creditors. If section 106 and section 68 are to stand together, which they must, then, the sub-creditors. If section 106 and section 68 are to stand together, which they must, then, the interpretation of section 68 are to stand together, which they must, then the interpretation of section 68 are to stand together, which they must, then the interpretation of section 68 are to stand together, which they must, then the interpretation of section 68 has to be in such a way that it does not make section 106 redundant. Hence, the of section 68 has to be in such a way that it does not make section 106 redundant. Hence, the of section 68 has to be in such a way that it does not make section 106 redundant. Hence, the harmonious construction of section 106 of the Evidence Act and section 68 of the Income- tax harmonious construction of section 106 of the Evidence Act and section 68 of the Income- tax harmonious construction of section 106 of the Evidence Act and section 68 of the Income- tax Act will be that though apart from establishing t Act will be that though apart from establishing the identity of the creditor, the assessee must he identity of the creditor, the assessee must establish the genuineness of the transaction as well as the creditworthiness of his creditor, the establish the genuineness of the transaction as well as the creditworthiness of his creditor, the establish the genuineness of the transaction as well as the creditworthiness of his creditor, the burden of the assessee to prove the genuineness of the transactions as well as the burden of the assessee to prove the genuineness of the transactions as well as the burden of the assessee to prove the genuineness of the transactions as well as the creditworthiness of the cred creditworthiness of the creditor must remain confined to the transactions, which have taken itor must remain confined to the transactions, which have taken place between the assessee and the creditor. What follows, as a corollary, is that it is not the place between the assessee and the creditor. What follows, as a corollary, is that it is not the place between the assessee and the creditor. What follows, as a corollary, is that it is not the burden of the assessee to prove the genuineness of the transactions between his creditor and burden of the assessee to prove the genuineness of the transactions between his creditor and burden of the assessee to prove the genuineness of the transactions between his creditor and sub-creditors nor is it the burden of the assessee to prove that the sub creditors nor is it the burden of the assessee to prove that the sub creditors nor is it the burden of the assessee to prove that the sub-creditor had the & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. creditworthiness to advance the cash credit to the creditor from whom the cash credit has creditworthiness to advance the cash credit to the creditor from whom the cash credit has creditworthiness to advance the cash credit to the creditor from whom the cash credit has been. eventually, received by the assessee. It, therefore, further logically f been. eventually, received by the assessee. It, therefore, further logically f been. eventually, received by the assessee. It, therefore, further logically follows that the creditor's creditworthiness has to be Judged vis creditor's creditworthiness has to be Judged vis-a-vis the transactions, which have taken place vis the transactions, which have taken place between the assessee and the creditor, and it is not the business of the assessee to find out the between the assessee and the creditor, and it is not the business of the assessee to find out the between the assessee and the creditor, and it is not the business of the assessee to find out the source of money of his creditor or of the gen source of money of his creditor or of the genuineness of the transactions, which took between uineness of the transactions, which took between the creditor and sub- -creditor and/or creditworthiness of the sub- creditors, for, these aspects creditor and/or creditworthiness of the sub- creditors, for, these aspects may not be within the special knowledge of the assessee. " may not be within the special knowledge of the assessee. " **********

" ... If a creditor has, by any undiscl " ... If a creditor has, by any undisclosed source, a particular amount of money in the bank, osed source, a particular amount of money in the bank, there is no limitation under the law on the part of the assessee to obtain such amount of money there is no limitation under the law on the part of the assessee to obtain such amount of money there is no limitation under the law on the part of the assessee to obtain such amount of money or part thereof from the creditor, by way of cheque in the form of loan and in such a case, if or part thereof from the creditor, by way of cheque in the form of loan and in such a case, if or part thereof from the creditor, by way of cheque in the form of loan and in such a case, if the creditor fails to satisfy as to how he had actually received the said amount and happened or fails to satisfy as to how he had actually received the said amount and happened or fails to satisfy as to how he had actually received the said amount and happened to keep the same in the bank, the said amount cannot be treated as income of the assessee to keep the same in the bank, the said amount cannot be treated as income of the assessee to keep the same in the bank, the said amount cannot be treated as income of the assessee from undisclosed source. In other words, the genuineness as well as the creditwort from undisclosed source. In other words, the genuineness as well as the creditwort from undisclosed source. In other words, the genuineness as well as the creditworthiness of a creditor have to be adjudged vis-a creditor have to be adjudged vis-a-vis the transactions, which he has with the assessee. The vis the transactions, which he has with the assessee. The reason why we have formed the opinion that it is not the business of the assessee to find out reason why we have formed the opinion that it is not the business of the assessee to find out reason why we have formed the opinion that it is not the business of the assessee to find out the actual source or sources from where the creditor has the actual source or sources from where the creditor has accumulated the amount, which he accumulated the amount, which he advances, as loan, to the assessee is that so far as an assessee is concerned, he has to prove advances, as loan, to the assessee is that so far as an assessee is concerned, he has to prove advances, as loan, to the assessee is that so far as an assessee is concerned, he has to prove the genuineness of the transaction and the creditworthiness of the creditor vis-a the genuineness of the transaction and the creditworthiness of the creditor vis-a the genuineness of the transaction and the creditworthiness of the creditor vis-a-vis the transactions which had taken place bet transactions which had taken place between the assessee and the creditor and not between the ween the assessee and the creditor and not between the creditor and the sub-creditors, for, it is not even required under the law for the assessee to try creditors, for, it is not even required under the law for the assessee to try creditors, for, it is not even required under the law for the assessee to try to find out as to what sources from where the creditor had received the amount, his special to find out as to what sources from where the creditor had received the amount, his special to find out as to what sources from where the creditor had received the amount, his special knowledge under section 106 of the Evidence Act may very well remain confined only to the under section 106 of the Evidence Act may very well remain confined only to the under section 106 of the Evidence Act may very well remain confined only to the transactions, which he had' with the creditor and he may not know what transaction(s) had transactions, which he had' with the creditor and he may not know what transaction(s) had transactions, which he had' with the creditor and he may not know what transaction(s) had taken place between his creditor and the sub taken place between his creditor and the sub-creditor… " **********

"In other words, though under section 68 an Assessing Officer is free to show, with the help of though under section 68 an Assessing Officer is free to show, with the help of though under section 68 an Assessing Officer is free to show, with the help of the inquiry conducted by him into the transactions, which have taken place between the the inquiry conducted by him into the transactions, which have taken place between the the inquiry conducted by him into the transactions, which have taken place between the creditor and the sub- creditor, that the transaction between the two were not genuine and creditor, that the transaction between the two were not genuine and that the sub-creditor had no creditworthiness, it will not necessarily mean that the loan advanced creditor had no creditworthiness, it will not necessarily mean that the loan advanced creditor had no creditworthiness, it will not necessarily mean that the loan advanced by the sub-creditor to the creditor was income of the assessee from undisclosed source unless creditor to the creditor was income of the assessee from undisclosed source unless creditor to the creditor was income of the assessee from undisclosed source unless there is evidence, direct or circumstantial, to show that the a there is evidence, direct or circumstantial, to show that the amount which has been advanced mount which has been advanced by the sub-creditor to the creditor, had actually been received by the sub creditor to the creditor, had actually been received by the sub creditor to the creditor, had actually been received by the sub-creditor from the assessee …." **********

"Keeping in view the above position of law, when we turn to the factual matrix of the present "Keeping in view the above position of law, when we turn to the factual matrix of the present "Keeping in view the above position of law, when we turn to the factual matrix of the present case, we find that so far as the appellant is concerned, he has established the identity of the that so far as the appellant is concerned, he has established the identity of the that so far as the appellant is concerned, he has established the identity of the creditors, namely, Nemichand Nahata and Sons (HUF) and Pawan Kumar Agarwalla. The creditors, namely, Nemichand Nahata and Sons (HUF) and Pawan Kumar Agarwalla. The creditors, namely, Nemichand Nahata and Sons (HUF) and Pawan Kumar Agarwalla. The appellant had also shown, in accordance with the burden, which rested on him under section appellant had also shown, in accordance with the burden, which rested on him under section appellant had also shown, in accordance with the burden, which rested on him under section 106 of the Evidence Act, that the said amounts had been received by him by way of cheques 106 of the Evidence Act, that the said amounts had been received by him by way of cheques 106 of the Evidence Act, that the said amounts had been received by him by way of cheques from the creditors aforementioned. In fact the fact that the assessee had received the said from the creditors aforementioned. In fact the fact that the assessee had received the said from the creditors aforementioned. In fact the fact that the assessee had received the said amounts by way of cheques was not in dispute. Once the assessee had establ amounts by way of cheques was not in dispute. Once the assessee had establ amounts by way of cheques was not in dispute. Once the assessee had established that he had received the said amounts from the creditors aforementioned by way of cheques, the assessee received the said amounts from the creditors aforementioned by way of cheques, the assessee received the said amounts from the creditors aforementioned by way of cheques, the assessee must be taken to have proved that the creditor had the creditworthiness to advance the loans. must be taken to have proved that the creditor had the creditworthiness to advance the loans. must be taken to have proved that the creditor had the creditworthiness to advance the loans.

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. Thereafter the burden had shifted to the Assessing O Thereafter the burden had shifted to the Assessing Officer to prove the contrary. On mere fficer to prove the contrary. On mere failure on the part of the creditors to show that their sub failure on the part of the creditors to show that their sub-creditors had creditworthiness to creditors had creditworthiness to advance the said loan amounts to the assessee, such failure, as a corollary, could not have advance the said loan amounts to the assessee, such failure, as a corollary, could not have advance the said loan amounts to the assessee, such failure, as a corollary, could not have been and ought not to have been, been and ought not to have been, under the law, treated as the income from the undisclosed under the law, treated as the income from the undisclosed sources of the assessee himself, when there was neither direct nor circumstantial evidence on sources of the assessee himself, when there was neither direct nor circumstantial evidence on sources of the assessee himself, when there was neither direct nor circumstantial evidence on record that the said loan amounts actually belonged to, or were owned by, the assessee. record that the said loan amounts actually belonged to, or were owned by, the assessee. record that the said loan amounts actually belonged to, or were owned by, the assessee. Viewed from this angle, we have no hesitation in holding that in the case at hand, the s angle, we have no hesitation in holding that in the case at hand, the s angle, we have no hesitation in holding that in the case at hand, the Assessing Officer had failed to show that the amounts, which had come to the hands of the Assessing Officer had failed to show that the amounts, which had come to the hands of the Assessing Officer had failed to show that the amounts, which had come to the hands of the creditors from the hands of the sub creditors from the hands of the sub-creditors, had actually been received by the sub creditors, had actually been received by the sub-creditors from the assessee. In the absence of any such evidence on record, the Assessing Officer could from the assessee. In the absence of any such evidence on record, the Assessing Officer could from the assessee. In the absence of any such evidence on record, the Assessing Officer could not have treated the said amounts as income derived by the appellant from undisclosed not have treated the said amounts as income derived by the appellant from undisclosed not have treated the said amounts as income derived by the appellant from undisclosed sources. The learned Tribunal seriously fell into error in treating the sai sources. The learned Tribunal seriously fell into error in treating the sai sources. The learned Tribunal seriously fell into error in treating the said amounts as income derived by the appellant from. undisclosed sources merely on the failure of the sub derived by the appellant from. undisclosed sources merely on the failure of the sub derived by the appellant from. undisclosed sources merely on the failure of the sub-creditors to prove their creditworthiness.” to prove their creditworthiness.”

"4. The Tribunal has recorded a finding that the assessee has discharged the onus which was "4. The Tribunal has recorded a finding that the assessee has discharged the onus which was "4. The Tribunal has recorded a finding that the assessee has discharged the onus which was on him to explain the nature on him to explain the nature and source of cash credit in question. The assessee discharged and source of cash credit in question. The assessee discharged the onus by placing (i) confirmation letters of the cash creditors; (ii) their affidavits; (iii) their the onus by placing (i) confirmation letters of the cash creditors; (ii) their affidavits; (iii) their the onus by placing (i) confirmation letters of the cash creditors; (ii) their affidavits; (iii) their full addresses and GIR numbers and permanent account numbers. It has found that the full addresses and GIR numbers and permanent account numbers. It has found that the full addresses and GIR numbers and permanent account numbers. It has found that the assessee's burden stood discharged and so, no addition to his total income on account of cash ee's burden stood discharged and so, no addition to his total income on account of cash ee's burden stood discharged and so, no addition to his total income on account of cash credit was called for. In view of this finding, we find that the Tribunal was right i credit was called for. In view of this finding, we find that the Tribunal was right i credit was called for. In view of this finding, we find that the Tribunal was right in reversing the order of the AAC, setting aside the assessment order.” C, setting aside the assessment order.”

“15. It is now a settled law that while considering the qu “15. It is now a settled law that while considering the question whether the alleged loan taken estion whether the alleged loan taken by the assessee was a genuine transaction, the initial onus is always upon the assessee and if by the assessee was a genuine transaction, the initial onus is always upon the assessee and if by the assessee was a genuine transaction, the initial onus is always upon the assessee and if no explanation is given or the explanation given by the appellant is not satisfactory, the no explanation is given or the explanation given by the appellant is not satisfactory, the no explanation is given or the explanation given by the appellant is not satisfactory, the Assessing Officer can disbelieve Assessing Officer can disbelieve the alleged transaction of loan. But the law is equally settled the alleged transaction of loan. But the law is equally settled that if the initial burden is discharged by the assessee by producing sufficient materials in that if the initial burden is discharged by the assessee by producing sufficient materials in that if the initial burden is discharged by the assessee by producing sufficient materials in support of the loan transaction, the onus shifts upon the Assessing Officer and after support of the loan transaction, the onus shifts upon the Assessing Officer and after support of the loan transaction, the onus shifts upon the Assessing Officer and after verification, he can call for further explanation from the assessee and in the process, the onus n, he can call for further explanation from the assessee and in the process, the onus n, he can call for further explanation from the assessee and in the process, the onus may again shift from the Assessing Officer to assessee. may again shift from the Assessing Officer to assessee.

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd.

13. Hence, the judgment and order of the Tribunal is not sustainable. Accordingly, the same is 13. Hence, the judgment and order of the Tribunal is not sustainable. Accordingly, the same is 13. Hence, the judgment and order of the Tribunal is not sustainable. Accordingly, the same is set aside. We restore the judgment and order of the Commissioner of Income set aside. We restore the judgment and order of the Commissioner of Income set aside. We restore the judgment and order of the Commissioner of Income-tax (Appeals). The appeal is allowed. The appeal is allowed.

“In our opinion, in such circumstances, the Assessing officer of the assessee cannot take the “In our opinion, in such circumstances, the Assessing officer of the assessee cannot take the “In our opinion, in such circumstances, the Assessing officer of the assessee cannot take the burden of assessing the profit and loss account of the creditor when admittedly the creditor burden of assessing the profit and loss account of the creditor when admittedly the creditor burden of assessing the profit and loss account of the creditor when admittedly the creditor himself is an income tax assessee. After himself is an income tax assessee. After getting the PAN number and getting the information getting the PAN number and getting the information that the creditor is assessed under the Act, the Assessing officer should enquire from the that the creditor is assessed under the Act, the Assessing officer should enquire from the that the creditor is assessed under the Act, the Assessing officer should enquire from the Assessing Officer of the creditor as to the genuineness" of the transaction and whether such Assessing Officer of the creditor as to the genuineness" of the transaction and whether such Assessing Officer of the creditor as to the genuineness" of the transaction and whether such transaction has been accepted by the Assessing officer of the creditor but instead of adopting accepted by the Assessing officer of the creditor but instead of adopting such course, the Assessing officer himself could not enter into the return of the creditor and such course, the Assessing officer himself could not enter into the return of the creditor and such course, the Assessing officer himself could not enter into the return of the creditor and brand the same as unworthy of credence. brand the same as unworthy of credence.

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. So long it is not established that the return So long it is not established that the return submitted by the creditor has been rejected by its submitted by the creditor has been rejected by its Assessing Officer, the Assessing officer of the assessee is bound to accept the same as genuine Assessing Officer, the Assessing officer of the assessee is bound to accept the same as genuine Assessing Officer, the Assessing officer of the assessee is bound to accept the same as genuine when the identity of the creditor and the genuineness" of transaction through account payee when the identity of the creditor and the genuineness" of transaction through account payee when the identity of the creditor and the genuineness" of transaction through account payee cheque has been established. established. We find that both the Commissioner of Income Tax (Appeal) and the Tribunal below followed We find that both the Commissioner of Income Tax (Appeal) and the Tribunal below followed We find that both the Commissioner of Income Tax (Appeal) and the Tribunal below followed the well-accepted principle which are required to be followed in considering the effect of accepted principle which are required to be followed in considering the effect of accepted principle which are required to be followed in considering the effect of Section 68 of the Act and we thus find no reason to interfere Section 68 of the Act and we thus find no reason to interfere with the concurrent findings of with the concurrent findings of fact recorded by both the authorities.” fact recorded by both the authorities.”

“The only question raised in this appeal is whether the Commissioner of Income “The only question raised in this appeal is whether the Commissioner of Income “The only question raised in this appeal is whether the Commissioner of Income-tax (Appeals) and the Tribunal below erred in law in deleting the addition of Rs.8,52,000/ and the Tribunal below erred in law in deleting the addition of Rs.8,52,000/ and the Tribunal below erred in law in deleting the addition of Rs.8,52,000/-, Rs. 91,50,000/- and Rs. 13,00,000/- made by the Assessing Officer on account of share capital, share made by the Assessing Officer on account of share capital, share application money and investment in HTCCL respectively. application money and investment in HTCCL respectively. After hearing Md. Nizamuddin, learned Advocate appearing on behalf of the appellant and After hearing Md. Nizamuddin, learned Advocate appearing on behalf of the appellant and After hearing Md. Nizamuddin, learned Advocate appearing on behalf of the appellant and after going through the materials after going through the materials on record, we find that all such application money were on record, we find that all such application money were received by the assessee by way of account payee cheques and the assessee also disclosed the received by the assessee by way of account payee cheques and the assessee also disclosed the received by the assessee by way of account payee cheques and the assessee also disclosed the complete list of shareholders with their complete addresses and GIR Numbers for the relevant complete list of shareholders with their complete addresses and GIR Numbers for the relevant complete list of shareholders with their complete addresses and GIR Numbers for the relevant assessment years in which share application was contributed. It further appears that all the rs in which share application was contributed. It further appears that all the rs in which share application was contributed. It further appears that all the payments were made by the applicants by account payee cheques. payments were made by the applicants by account payee cheques. It appears from the Assessing Officers order that his grievance was that the assessee was not It appears from the Assessing Officers order that his grievance was that the assessee was not It appears from the Assessing Officers order that his grievance was that the assessee was not willing to produce the parties who had allegedly advanced the fund. the parties who had allegedly advanced the fund. In our opinion, both the Commissioner of Income In our opinion, both the Commissioner of Income-tax (Appeals) and the Tribunal below were tax (Appeals) and the Tribunal below were justified in holding that after disclosure of the full particulars indicated above, the initial onus justified in holding that after disclosure of the full particulars indicated above, the initial onus justified in holding that after disclosure of the full particulars indicated above, the initial onus of the assessee was shifted and it was the duty of the Assessing Officer to enquire whether was shifted and it was the duty of the Assessing Officer to enquire whether was shifted and it was the duty of the Assessing Officer to enquire whether those particulars were correct or not and if the Assessing Officer was of the view that the those particulars were correct or not and if the Assessing Officer was of the view that the those particulars were correct or not and if the Assessing Officer was of the view that the particulars supplied were insufficient to detect the real share applicants, to ask for particulars supplied were insufficient to detect the real share applicants, to ask for particulars supplied were insufficient to detect the real share applicants, to ask for further particulars. The Assessing Officer has not adopted either of the aforesaid courses but has simply blamed The Assessing Officer has not adopted either of the aforesaid courses but has simply blamed The Assessing Officer has not adopted either of the aforesaid courses but has simply blamed the assessee for not producing those share applicants. the assessee for not producing those share applicants. In our view, in the case before us so long the Assessing Officer was unable to arrive In our view, in the case before us so long the Assessing Officer was unable to arrive In our view, in the case before us so long the Assessing Officer was unable to arrive at a finding that the particulars given by the assessee were false, there was no scope of adding finding that the particulars given by the assessee were false, there was no scope of adding finding that the particulars given by the assessee were false, there was no scope of adding those money under section 68 of the Income those money under section 68 of the Income- tax Act and the Tribunal below rightly held that tax Act and the Tribunal below rightly held that the onus was validly discharged. the onus was validly discharged. We, thus, find that both the aut We, thus, find that both the authorities below, on consideration of the materials on record, horities below, on consideration of the materials on record, rightly applied the correct law which are required to be applied in the facts of the present rightly applied the correct law which are required to be applied in the facts of the present rightly applied the correct law which are required to be applied in the facts of the present case and, thus, we do not find any reason to interfere with the concurrent findings of fact case and, thus, we do not find any reason to interfere with the concurrent findings of fact case and, thus, we do not find any reason to interfere with the concurrent findings of fact based on materials on record. aterials on record.

& 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. The appeal is, thus, devoid of any substance and is dismissed summarily as it does not involve The appeal is, thus, devoid of any substance and is dismissed summarily as it does not involve The appeal is, thus, devoid of any substance and is dismissed summarily as it does not involve any substantial question of law. any substantial question of law.

For AY 2012-2013 (i)In respect of M/s. Deepak Pens and Pl In respect of M/s. Deepak Pens and Plastic Pvt. Ltd., the Ld. AR drew our attention to pages 48 to astic Pvt. Ltd., the Ld. AR drew our attention to pages 48 to 65 of the paper book and the Balance sheet, from where we note that this company gave loan of a 65 of the paper book and the Balance sheet, from where we note that this company gave loan of a 65 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.25,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Kolkata and was having PAN AAACD9050G. mpany duly filed its return of income before ITO, Kolkata and was having PAN AAACD9050G. mpany duly filed its return of income before ITO, Kolkata and was having PAN AAACD9050G. This company was having a paid up capital with free reserves and surplus of Rs.89,75,99,580/ This company was having a paid up capital with free reserves and surplus of Rs.89,75,99,580/ This company was having a paid up capital with free reserves and surplus of Rs.89,75,99,580/- as on 31/03/2012. The copy of the bank statement of the Company is duly a on 31/03/2012. The copy of the bank statement of the Company is duly a on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of On examination of the bank statement it is taken note that there is no deposit of cash. The details of On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of source of funds from which this company had made the loans are also available from a perusal of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in t the bank statement filed in the paper book. On the loan the appellant company paid interest after he paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid on 31.3.2012 the loan was repaid on 31.3.2012 as per ledger available at page 65 of the as per ledger available at page 65 of the paper book.

(ii)In respect of M/s. Motorex Finance Pvt. Ltd., the Ld. AR drew our attention t In respect of M/s. Motorex Finance Pvt. Ltd., the Ld. AR drew our attention t In respect of M/s. Motorex Finance Pvt. Ltd., the Ld. AR drew our attention to pages 66 to 78 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.30,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO company duly filed its return of income before ITO Ward 4(2), Kolkata and was having PAN Ward 4(2), Kolkata and was having PAN AACCM1042R. This company was having a paid up capital with free reserves and surplus of AACCM1042R. This company was having a paid up capital with free reserves and surplus of AACCM1042R. This company was having a paid up capital with free reserves and surplus of Rs.39,90,81,160/- as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examina available in the paper book. On examination of the bank statement it is taken note that there is no tion of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. appellant company paid interest after deducting TDS as per ledger available at pages 78 to 84 of the nt company paid interest after deducting TDS as per ledger available at pages 78 to 84 of the nt company paid interest after deducting TDS as per ledger available at pages 78 to 84 of the paper book.

(iii)In respect of M/s. Maharaja Vanijya Pvt. Ltd., the Ld. AR drew our attention to pages 87 to 109 In respect of M/s. Maharaja Vanijya Pvt. Ltd., the Ld. AR drew our attention to pages 87 to 109 In respect of M/s. Maharaja Vanijya Pvt. Ltd., the Ld. AR drew our attention to pages 87 to 109 of the paper book and the Balance sheet, from wh of the paper book and the Balance sheet, from where we note that this company gave loan of a sum ere we note that this company gave loan of a sum of Rs.50,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO Ward 35(4), Kolkata and was having PAN company duly filed its return of income before ITO Ward 35(4), Kolkata and was having PAN company duly filed its return of income before ITO Ward 35(4), Kolkata and was having PAN AAFCM3843B. This company AAFCM3843B. This company was having a paid up capital with free reserves and surplus of was having a paid up capital with free reserves and surplus of Rs.84,22,297/- as on 31/03/2012. The copy of the bank statement of the Company is duly available as on 31/03/2012. The copy of the bank statement of the Company is duly available as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposi in the paper book. On examination of the bank statement it is taken note that there is no deposi in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available cash. The details of source of funds from which this company had made the loans are also available cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company from a perusal of the bank statement filed in the paper book. On the loan the appellant company from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and paid interest after deducting TDS and the loan was repaid as on 31.3.2019 d as on 31.3.2019 as per ledger account available at pages 102 to109 of the paper book. available at pages 102 to109 of the paper book. iv) In respect of Kokila Exports Pvt. Ltd., the Ld. AR drew our attention to pages 110 to 131 of the In respect of Kokila Exports Pvt. Ltd., the Ld. AR drew our attention to pages 110 to 131 of the In respect of Kokila Exports Pvt. Ltd., the Ld. AR drew our attention to pages 110 to 131 of the paper book and the Balance sheet, from where we note that this com paper book and the Balance sheet, from where we note that this company gave loan of a sum of pany gave loan of a sum of Rs.1,05,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward 4(4), Kolkata and was having PAN company duly filed its return of income before ITO, Ward 4(4), Kolkata and was having PAN company duly filed its return of income before ITO, Ward 4(4), Kolkata and was having PAN AABCK1178K. This company was having a paid up ca AABCK1178K. This company was having a paid up capital with free reserves and surplus of pital with free reserves and surplus of Rs.92,94,07,446/- as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are ls of source of funds from which this company had made the loans are ls of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2014 the loan was repaid as on 31.3.2014 as per ledger account available at pages 129 to 131 of the paper book. per ledger account available at pages 129 to 131 of the paper book. v) In respect of M/s. Hexagon Commerce Pvt. Ltd., the Ld. AR drew our attention to page 132 to In respect of M/s. Hexagon Commerce Pvt. Ltd., the Ld. AR drew our attention to page 132 to In respect of M/s. Hexagon Commerce Pvt. Ltd., the Ld. AR drew our attention to page 132 to 157 of the paper book and the Balance sheet, from where we 157 of the paper book and the Balance sheet, from where we note that this company gave loan note that this company gave loan of a sum of Rs.1,65,00,000/- to the appellant company. The loan was repaid by account payee cheque The loan was repaid by account payee cheque on 31.03.2019. This company duly filed its return of income before DCIT, Circle . This company duly filed its return of income before DCIT, Circle . This company duly filed its return of income before DCIT, Circle-9, Kolkata and was having PAN AAACH6742D. This company was having a paid up was having PAN AAACH6742D. This company was having a paid up capital with free reserves and capital with free reserves and & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. surplus of Rs.38,77,05,972/ surplus of Rs.38,77,05,972/- as on 31/03/2012. The copy of the bank statement of the Company is as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. There was no fresh loan taken during the year. duly available in the paper book. There was no fresh loan taken during the year. duly available in the paper book. There was no fresh loan taken during the year. vi) In respect of M/s. K.B. Switchgear Pvt. Ltd In respect of M/s. K.B. Switchgear Pvt. Ltd., the Ld. AR drew our attention to page 158 to 190 ., the Ld. AR drew our attention to page 158 to 190 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.3,00,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward 4(4), Kolkata, and was having PAN filed its return of income before ITO, Ward 4(4), Kolkata, and was having PAN filed its return of income before ITO, Ward 4(4), Kolkata, and was having PAN AABCK2162K. This company was having a paid up capital with free reserves and surplus of AABCK2162K. This company was having a paid up capital with free reserves and surplus of AABCK2162K. This company was having a paid up capital with free reserves and surplus of Rs.57,80,13,067/- as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in also available from a perusal of the bank statement filed in the paper book. On the loan the the paper book. On the loan the appellant company paid interest after deducting TDS and the loan appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2019 as was repaid as on 31.3.2019 as per ledger available at pages 182 to 189 of the paper book. The company had also submitted reply per ledger available at pages 182 to 189 of the paper book. The company had also submitted reply per ledger available at pages 182 to 189 of the paper book. The company had also submitted reply to the AO of the appellant compa to the AO of the appellant company and copy of the reply is available at page 190 of the paper ny and copy of the reply is available at page 190 of the paper book. vi) In respect of M/s. Dhoot Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to In respect of M/s. Dhoot Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to In respect of M/s. Dhoot Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to pages 191 to 225 of the paper book and the Balance sheet, from where we note that this pages 191 to 225 of the paper book and the Balance sheet, from where we note that this pages 191 to 225 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.75,00,000/ gave loan of a sum of Rs.75,00,000/- to the appellant company. The loan was made by account to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before DCIT, Circle payee cheque. This company duly filed its return of income before DCIT, Circle payee cheque. This company duly filed its return of income before DCIT, Circle-6, Kolkata, and was having PAN AABCD1808R. This company was having a paid up was having PAN AABCD1808R. This company was having a paid up capital with free reserves and capital with free reserves and surplus of Rs.34,61,96,015/ surplus of Rs.34,61,96,015/- as on 31/03/2012. The copy of the bank statement of the Company is as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is duly available in the paper book. On examination of the bank statement it is taken note that there is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are tails of source of funds from which this company had made the loans are tails of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2019 was repaid as on 31.3.2019 as per ledger available at pages 217 to 224 of the paper book. The company had also submitted reply per ledger available at pages 217 to 224 of the paper book. The company had also submitted reply per ledger available at pages 217 to 224 of the paper book. The company had also submitted reply to the AO of the appellant company and copy of the reply is available at page 225 of the paper to the AO of the appellant company and copy of the reply is available at page 225 of the paper to the AO of the appellant company and copy of the reply is available at page 225 of the paper book. & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. viii) In respect of M/s. Nidhi Agro Pvt. Ltd., the Ld In respect of M/s. Nidhi Agro Pvt. Ltd., the Ld. AR drew our attention to pages 226 to 243 of . AR drew our attention to pages 226 to 243 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.1,12,94,435/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before Central Circle s return of income before Central Circle- 31, Delhi and was having PAN 31, Delhi and was having PAN AAACN8759L. This company was having a paid up capital with free reserves and surplus of AAACN8759L. This company was having a paid up capital with free reserves and surplus of AAACN8759L. This company was having a paid up capital with free reserves and surplus of Rs.91,10,57,715/- as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no le in the paper book. On examination of the bank statement it is taken note that there is no le in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the pap also available from a perusal of the bank statement filed in the pap also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2012 was repaid as on 31.3.2012 as per ledger available at page 243 of the paper book. per ledger available at page 243 of the paper book. ix) In respect of M/s. Shree Sudarshan Casting Pvt. Ltd., the Ld. AR drew our atten In respect of M/s. Shree Sudarshan Casting Pvt. Ltd., the Ld. AR drew our atten In respect of M/s. Shree Sudarshan Casting Pvt. Ltd., the Ld. AR drew our attention to pages 244 to 264 of the paper book and the Balance sheet, from where we note that this company gave 244 to 264 of the paper book and the Balance sheet, from where we note that this company gave 244 to 264 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.1,00,00,000/ loan of a sum of Rs.1,00,00,000/- to the appellant company. The loan was made by account payee to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income cheque. This company duly filed its return of income before DCIT, Central Circle before DCIT, Central Circle -5, Kolkata, and was having PAN AADCS9429B. This company was having a paid up capital with free reserves and was having PAN AADCS9429B. This company was having a paid up capital with free reserves and was having PAN AADCS9429B. This company was having a paid up capital with free reserves and surplus of Rs.46,70,00,522/ surplus of Rs.46,70,00,522/- as on 31/03/2012. The copy of the bank statement of the Company is as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is aper book. On examination of the bank statement it is taken note that there is aper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are no deposit of cash. The details of source of funds from which this company had made the loans are no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On also available from a perusal of the bank statement filed in the paper book. On also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2012 loan was repaid as on 31.3.2012 as appellant company paid interest after deducting TDS and the per ledger available at page 264 of the paper book. per ledger available at page 264 of the paper book. x) In respect of M/s. Dufflaghur Investments Ltd., the Ld. AR drew our attention to pages 265 In respect of M/s. Dufflaghur Investments Ltd., the Ld. AR drew our attention to pages 265 In respect of M/s. Dufflaghur Investments Ltd., the Ld. AR drew our attention to pages 265 to 286 of the paper book and the Balance sheet, from where we note that this company gave loan of a 286 of the paper book and the Balance sheet, from where we note that this company gave loan of a 286 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.3,00,00,000/- to the appellant company. The loan was made by account payee cheque. to the appellant company. The loan was made by account payee cheque. to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income and was having PAN This company duly filed its return of income and was having PAN AAACD9587C. This company AAACD9587C. This company was having a paid up capital with free reserves and surplus of Rs.5,54,24,202/ was having a paid up capital with free reserves and surplus of Rs.5,54,24,202/ was having a paid up capital with free reserves and surplus of Rs.5,54,24,202/- as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On The copy of the bank statement of the Company is duly available in the paper book. On The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken examination of the bank statement it is taken note that there is no deposit of cash. The details of note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of source of funds from which this company had made the loans are also available from a perusal of source of funds from which this company had made the loans are also available from a perusal of & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. the bank statement filed in the paper book. On the loan the appellant company paid interest after the bank statement filed in the paper book. On the loan the appellant company paid interest after the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan g TDS and the loan was repaid as on 31.3.2014 as per ledger available at pages 284 to 286 as per ledger available at pages 284 to 286 of the paper book xi) In respect of M/s. Midnight Agencies (P) Ltd., the Ld. AR drew our attention to pages 287 to In respect of M/s. Midnight Agencies (P) Ltd., the Ld. AR drew our attention to pages 287 to In respect of M/s. Midnight Agencies (P) Ltd., the Ld. AR drew our attention to pages 287 to 304 of the paper book and the Balance sheet, from w 304 of the paper book and the Balance sheet, from where we note that this company gave loan of a here we note that this company gave loan of a sum of Rs.50,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward 1(3), Kolkata, and was having PAN company duly filed its return of income before ITO, Ward 1(3), Kolkata, and was having PAN company duly filed its return of income before ITO, Ward 1(3), Kolkata, and was having PAN AABCM6864G. This compan AABCM6864G. This company was having a paid up capital with free reserves and surplus of y was having a paid up capital with free reserves and surplus of Rs.23,99,99,314/- as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are eposit of cash. The details of source of funds from which this company had made the loans are eposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS as per ledger ava appellant company paid interest after deducting TDS as per ledger ava appellant company paid interest after deducting TDS as per ledger available at page 304 of the paper book. xii) In respect of M/s. Blackberry Goods Pvt. Ltd., the Ld. AR drew our attention to pages 313 to In respect of M/s. Blackberry Goods Pvt. Ltd., the Ld. AR drew our attention to pages 313 to In respect of M/s. Blackberry Goods Pvt. Ltd., the Ld. AR drew our attention to pages 313 to 331 of the paper book and the Balance sheet, from where we note that this company gave loan of a 331 of the paper book and the Balance sheet, from where we note that this company gave loan of a 331 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.1,32,50,000/- to the appellant company. The loan was made by account payee cheque. to the appellant company. The loan was made by account payee cheque. to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward 8(1) Kolkata, and was having PAN This company duly filed its return of income before ITO, Ward 8(1) Kolkata, and was having PAN This company duly filed its return of income before ITO, Ward 8(1) Kolkata, and was having PAN AADCB5112A. This company was having a paid up capital with free reserves and surplus AADCB5112A. This company was having a paid up capital with free reserves and surplus AADCB5112A. This company was having a paid up capital with free reserves and surplus including borrowed funds of Rs.1,39,83,119/ ing borrowed funds of Rs.1,39,83,119/- as on 31/03/2012. The copy of the bank statement of as on 31/03/2012. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken the Company is duly available in the paper book. On examination of the bank statement it is taken the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of fun note that there is no deposit of cash. The details of source of funds from which this company had ds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On made the loans are also available from a perusal of the bank statement filed in the paper book. On made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the the loan the appellant company paid interest after deducting TDS and the the loan the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2015 as per ledger availab as per ledger available at pages 326 to 330 of the paper book. The company had also le at pages 326 to 330 of the paper book. The company had also submitted reply to the AO of the appellant company and copy of the reply is available at page 331 submitted reply to the AO of the appellant company and copy of the reply is available at page 331 submitted reply to the AO of the appellant company and copy of the reply is available at page 331 of the paper book. & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. Assessment Year: 2013-2014 2014 Fresh Loans received from 5 parties (Department Fresh Loans received from 5 parties (Departmental Ground nos. 1-3) 3) i)In respect of M/s. Amritphal Tradelink Pvt. Ltd., the Ld. AR drew our attention to pages 61 to 75 In respect of M/s. Amritphal Tradelink Pvt. Ltd., the Ld. AR drew our attention to pages 61 to 75 In respect of M/s. Amritphal Tradelink Pvt. Ltd., the Ld. AR drew our attention to pages 61 to 75 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.16,50,000/- to the appellant company. The loan was made to the appellant company. The loan was made by account payee cheque. This by account payee cheque. This company duly filed its return of income before ITO, Ward 4(3), Kolkata and was having PAN company duly filed its return of income before ITO, Ward 4(3), Kolkata and was having PAN company duly filed its return of income before ITO, Ward 4(3), Kolkata and was having PAN AAICA1299E. This company was having a paid up capital with free reserves and surplus of AAICA1299E. This company was having a paid up capital with free reserves and surplus of AAICA1299E. This company was having a paid up capital with free reserves and surplus of Rs.2,21,59,012/- as on 31/03/2013. The copy of as on 31/03/2013. The copy of the bank statement of the Company is duly the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the a perusal of the bank statement filed in the paper book. On the loan the a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the loan appellant company paid interest after deducting TDS and the loan was repaid as on 19 was repaid as on 19-07-2019 as per ledger available at pages 69 to 75 of the paper book. per ledger available at pages 69 to 75 of the paper book. ii)In respect of M/s. Dhoot In respect of M/s. Dhoot Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to Industrial & Investment Co. Pvt. Ltd., the Ld. AR drew our attention to pages 77 to 126 of the paper book and the Balance sheet, from where we note that this company pages 77 to 126 of the paper book and the Balance sheet, from where we note that this company pages 77 to 126 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.1,00,00,000/ gave loan of a sum of Rs.1,00,00,000/- to the appellant company. The loan was made by acc to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before DCIT, Circle payee cheque. This company duly filed its return of income before DCIT, Circle payee cheque. This company duly filed its return of income before DCIT, Circle-6, Kolkata, and was having PAN AABCD1808R. This company was having a paid up capital with free reserves and was having PAN AABCD1808R. This company was having a paid up capital with free reserves and was having PAN AABCD1808R. This company was having a paid up capital with free reserves and surplus of Rs.35,47,13,529/ surplus of Rs.35,47,13,529/- as on 31/03/2013. The copy of the bank statement of the Company is ank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is duly available in the paper book. On examination of the bank statement it is taken note that there is duly available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are no deposit of cash. The details of source of funds from which this company had made the loans are no deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the rusal of the bank statement filed in the paper book. On the loan the rusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS appellant company paid interest after deducting TDS as per ledger available at pages 118 as per ledger available at pages 118-126 of the paper book and the loan was repaid as on 31 was repaid as on 31-03-2019. iii)In respect of M/s. Ishphan Re In respect of M/s. Ishphan Realstates Pvt. Ltd., the Ld. AR drew our attention to pages 127 to143 alstates Pvt. Ltd., the Ld. AR drew our attention to pages 127 to143 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.20,00,000/- to the appellant company. The loan was made by account payee cheque. Thi to the appellant company. The loan was made by account payee cheque. Thi to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward 6(2), Kolkata and was having PAN company duly filed its return of income before ITO, Ward 6(2), Kolkata and was having PAN company duly filed its return of income before ITO, Ward 6(2), Kolkata and was having PAN & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. AABCI3872L. This company was having a paid up capital with free reserves and surplus of AABCI3872L. This company was having a paid up capital with free reserves and surplus of AABCI3872L. This company was having a paid up capital with free reserves and surplus of Rs.2,01,31,713/- as on 31/03/2013. The copy of the bank statement of the Com as on 31/03/2013. The copy of the bank statement of the Com as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statem also available from a perusal of the bank statement filed in the paper book. On the loan the ent filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2015 loan was repaid as on 31.3.2015 as per ledger available at pages 136 to 143 of the paper book. per ledger available at pages 136 to 143 of the paper book. iv)In respect of M/s Mega Energy Equipment Pvt. Ltd., t In respect of M/s Mega Energy Equipment Pvt. Ltd., the Ld. AR drew our attention to pages 144 he Ld. AR drew our attention to pages 144 to154 of the paper book and the Balance sheet, from where we note that this company gave loan of to154 of the paper book and the Balance sheet, from where we note that this company gave loan of to154 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.15,00,000/- to the appellant company. The loan was made by account payee cheque. to the appellant company. The loan was made by account payee cheque. to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward, 4(2), Kolkata and was having PAN its return of income before ITO, Ward, 4(2), Kolkata and was having PAN its return of income before ITO, Ward, 4(2), Kolkata and was having PAN AAFCM4480Q. This company was having a paid up capital with free reserves and surplus of AAFCM4480Q. This company was having a paid up capital with free reserves and surplus of AAFCM4480Q. This company was having a paid up capital with free reserves and surplus of Rs.1,06,30,838/- as on 31/03/2013. The copy of the bank statement of the Company is duly as on 31/03/2013. The copy of the bank statement of the Company is duly as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no le in the paper book. On examination of the bank statement it is taken note that there is no le in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the pap also available from a perusal of the bank statement filed in the pap also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS and the appellant company paid interest after deducting TDS and the loan was repaid as on 31.3.2014 loan was repaid as on 31.3.2014 as per ledger available at pages 150 to 153 of the paper book. per ledger available at pages 150 to 153 of the paper book. v)In respect of M/s. Rudra Goods Pvt. Ltd., the Ld. AR drew our attention t In respect of M/s. Rudra Goods Pvt. Ltd., the Ld. AR drew our attention t In respect of M/s. Rudra Goods Pvt. Ltd., the Ld. AR drew our attention to pages 155 to 170 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.38,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before I company duly filed its return of income before ITO, Ward 4(3), Kolkata and was having PAN TO, Ward 4(3), Kolkata and was having PAN AAECR0974R. This company was having a paid up capital with free reserves and surplus of AAECR0974R. This company was having a paid up capital with free reserves and surplus of AAECR0974R. This company was having a paid up capital with free reserves and surplus of Rs.87,95,6591/- as on 31/03/2013. The copy of the bank statement of the Company is duly available as on 31/03/2013. The copy of the bank statement of the Company is duly available as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On examin in the paper book. On examination of the bank statement it is taken note that there is no deposit of ation of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are also available cash. The details of source of funds from which this company had made the loans are also available cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the appell from a perusal of the bank statement filed in the paper book. On the loan the appell from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interest after deducting TDS paid interest after deducting TDS and the loan was repaid as on 31.3.2019 and the loan was repaid as on 31.3.2019 as per ledger available at pages 164 to 170 of the paper book. at pages 164 to 170 of the paper book. & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. vi)In respect of M/s. Royalpet Traders Pvt. Ltd., the Ld. AR drew our attention to pages 171 194 of In respect of M/s. Royalpet Traders Pvt. Ltd., the Ld. AR drew our attention to pages 171 194 of In respect of M/s. Royalpet Traders Pvt. Ltd., the Ld. AR drew our attention to pages 171 194 of the paper book and the Balance sheet, from where we note that this company gave loan of a sum of per book and the Balance sheet, from where we note that this company gave loan of a sum of per book and the Balance sheet, from where we note that this company gave loan of a sum of Rs.50,00,000/- to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This to the appellant company. The loan was made by account payee cheque. This company duly filed its return of income before ITO, Ward, 4(1), Kolkata, and company duly filed its return of income before ITO, Ward, 4(1), Kolkata, and company duly filed its return of income before ITO, Ward, 4(1), Kolkata, and was having PAN AAFCR7873N. This company was having a paid up capital with free reserves and surplus of AAFCR7873N. This company was having a paid up capital with free reserves and surplus of AAFCR7873N. This company was having a paid up capital with free reserves and surplus of Rs.14,92,01,336/- as on 31/03/2013. The copy of the bank statement of the Company is duly as on 31/03/2013. The copy of the bank statement of the Company is duly as on 31/03/2013. The copy of the bank statement of the Company is duly available in the paper book. On examination of the bank statem available in the paper book. On examination of the bank statement it is taken note that there is no ent it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the also available from a perusal of the bank statement filed in the paper book. On the loan the appellant company paid interes appellant company paid interest and the loan was repaid as on 31.3.2014 the loan was repaid as on 31.3.2014 as per ledger available at pages 193-194 of the paper book. 194 of the paper book.

Advances Received of Rs.1,30,00,000/ Advances Received of Rs.1,30,00,000/- (Departmental grounds no. 4 (Departmental grounds no. 4-5) vii)In respect of M/s. Asish Finance Ltd., the Ld. AR drew our attention to pages 196 to 220 of the In respect of M/s. Asish Finance Ltd., the Ld. AR drew our attention to pages 196 to 220 of the In respect of M/s. Asish Finance Ltd., the Ld. AR drew our attention to pages 196 to 220 of the paper book and the Balance sheet, from where we note that this company gave advance of a sum of paper book and the Balance sheet, from where we note that this company gave advance of a sum of paper book and the Balance sheet, from where we note that this company gave advance of a sum of Rs.1,30,00,000/- to the appellant company. The advance was made to the appellant company. The advance was made by account payee cheque. This by account payee cheque. This company duly filed its return of income before DCIT, Circle company duly filed its return of income before DCIT, Circle-8, Kolkata, and was having PAN 8, Kolkata, and was having PAN AAACE5774A. This company was having a paid up capital with free reserves and surplus of AAACE5774A. This company was having a paid up capital with free reserves and surplus of AAACE5774A. This company was having a paid up capital with free reserves and surplus of Rs.10,43,11,198/- as on 31/03/2013. The copy of as on 31/03/2013. The copy of the bank statement of the Company is duly the bank statement of the Company is duly available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no available in the paper book. On examination of the bank statement it is taken note that there is no deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are deposit of cash. The details of source of funds from which this company had made the loans are also available from a perusal of the bank statement filed in the paper book. On the advances the m a perusal of the bank statement filed in the paper book. On the advances the m a perusal of the bank statement filed in the paper book. On the advances the appellant company paid interest after deducting TDS and the advance appellant company paid interest after deducting TDS and the advance was repaid as on 31.3.2014 was repaid as on 31.3.2014 as per ledger available at pages 219 as per ledger available at pages 219-220 of the paper book.

At the outset itself, it has been brought to our notice that the Ld. CIT(A) has At the outset itself, it has been brought to our notice that the Ld. CIT(A) has At the outset itself, it has been brought to our notice that the Ld. CIT(A) has taken note that there was no exempt income earned by the assessee taken note that there was no exempt income earned by the assessee taken note that there was no exempt income earned by the assessee in both the assessment years before us. This assessment years before us. This fact that the assessee has not earne that the assessee has not earned any exempt income for both the assessment years under consideration income for both the assessment years under consideration stands undisputed stands undisputed. Taking note of this fact, the Ld. CIT(A) has given relief to the assessee by deleting the note of this fact, the Ld. CIT(A) has given relief to the assessee by deleting the note of this fact, the Ld. CIT(A) has given relief to the assessee by deleting the disallowance made by AO u/s. 14A read with Rule 8D. This view has been end disallowance made by AO u/s. 14A read with Rule 8D. This view has been end disallowance made by AO u/s. 14A read with Rule 8D. This view has been endorsed by the Hon’ble Calcutta High Court in CIT Vs. Ashika Global Securities Ltd. in ITAT 100 the Hon’ble Calcutta High Court in CIT Vs. Ashika Global Securities Ltd. in ITAT 100 the Hon’ble Calcutta High Court in CIT Vs. Ashika Global Securities Ltd. in ITAT 100 of 2014, GA No.2122 of 2014 dated 11.06.2018, therefore, we decline to interfere in the of 2014, GA No.2122 of 2014 dated 11.06.2018, therefore, we decline to interfere in the of 2014, GA No.2122 of 2014 dated 11.06.2018, therefore, we decline to interfere in the order passed by the Ld. CIT(A order passed by the Ld. CIT(A) and we confirm the same. These ground grounds of appeal for both the years are dismissed both the years are dismissed.

31. Ground nos. 6 and 7 Ground nos. 6 and 7 for AY 2013-14 relate to the deletion of sum of Rs.16,20,000/ relate to the deletion of sum of Rs.16,20,000/-. The AO has made the following AO has made the following observation while making the addition: “On perusal of accounts it is seen that a sum of “On perusal of accounts it is seen that a sum of Rs.16,20,000/- has been credited to the books has been credited to the books of the assessee company during the relevant previous year as ‘Trade payables’ and the of the assessee company during the relevant previous year as ‘Trade payables’ and the of the assessee company during the relevant previous year as ‘Trade payables’ and the assessee failed to offer any satisfactory explanation about the nature and source of such credit assessee failed to offer any satisfactory explanation about the nature and source of such credit assessee failed to offer any satisfactory explanation about the nature and source of such credit and also failed to produce and also failed to produce any documents etc. about genuinity, identity and creditworthiness any documents etc. about genuinity, identity and creditworthiness of such transaction/related party(s). Therefore, the said sum of Rs.16,20,000/ of such transaction/related party(s). Therefore, the said sum of Rs.16,20,000/ of such transaction/related party(s). Therefore, the said sum of Rs.16,20,000/- is added u/s. 68 of the Act.”

32. Aggrieved, assessee preferred an appeal before the Ld. CIT(A), who deleted Aggrieved, assessee preferred an appeal before the Ld. CIT(A), who deleted Aggrieved, assessee preferred an appeal before the Ld. CIT(A), who deleted the addition by observing as under: addition by observing as under: “The AR of the appellant has submitted that this ground relates to addition of sum Rs “The AR of the appellant has submitted that this ground relates to addition of sum Rs “The AR of the appellant has submitted that this ground relates to addition of sum Rs .16,20,000/- received by the appellant as 'advance under section 68 of the Act as received by the appellant as 'advance under section 68 of the Act as received by the appellant as 'advance under section 68 of the Act as unexplained cash credit. It is submitted that in c unexplained cash credit. It is submitted that in course of the assessment proceedings and in ourse of the assessment proceedings and in response to notice issued u/s 142(1) the assessee submitted a letter dated 31.07.2015. In response to notice issued u/s 142(1) the assessee submitted a letter dated 31.07.2015. In response to notice issued u/s 142(1) the assessee submitted a letter dated 31.07.2015. In point number 1 of this letter the assessee explained that it had received sum of point number 1 of this letter the assessee explained that it had received sum of point number 1 of this letter the assessee explained that it had received sum of Rs.16,20,000/- from Dhoot Infrastructure P from Dhoot Infrastructure Projects Limited , 904 rojects Limited , 904-907, Time. Tower, M.G.Road, Sector-28, Gurgoan, Haryana.(PAN AACCD2118H) towards sale of shares to 28, Gurgoan, Haryana.(PAN AACCD2118H) towards sale of shares to 28, Gurgoan, Haryana.(PAN AACCD2118H) towards sale of shares to them. Copies of purchase and sale invoices were also furnished by the assessee. The nature them. Copies of purchase and sale invoices were also furnished by the assessee. The nature them. Copies of purchase and sale invoices were also furnished by the assessee. The nature of such Trade Payable was also explained to of such Trade Payable was also explained to the AO. The assessee furnished the complete the AO. The assessee furnished the complete details including name, address, PAN, Bank statement highlighting the transaction before details including name, address, PAN, Bank statement highlighting the transaction before details including name, address, PAN, Bank statement highlighting the transaction before the AO. The AO has conveniently ignored such details filed by the assessee and made a the AO. The AO has conveniently ignored such details filed by the assessee and made a the AO. The AO has conveniently ignored such details filed by the assessee and made a swiping remark that the assessee fail swiping remark that the assessee failed to produce any documentary evidence with respect ed to produce any documentary evidence with respect to the advance received. The AO has not found any fault in the documents filed by the to the advance received. The AO has not found any fault in the documents filed by the to the advance received. The AO has not found any fault in the documents filed by the assessee in this regard. No discrepancy has been pointed out by the AO. assessee in this regard. No discrepancy has been pointed out by the AO. assessee in this regard. No discrepancy has been pointed out by the AO. The matter was also referred to the AO for also referred to the AO for remand report on merit after examination of the repl t after examination of the reply on merit. & 306/Kol/2018 Assessment Year: 2012 Assessment Year: 2012-13 & 2013-14 M/s. R.M. Commercial Pvt. Ltd. The AR of the appellate submitted that in Remand Report dated 13.09.2017, the AO has The AR of the appellate submitted that in Remand Report dated 13.09.2017, the AO has The AR of the appellate submitted that in Remand Report dated 13.09.2017, the AO has admitted to considering the relevant records & written submissions filed by the appellant admitted to considering the relevant records & written submissions filed by the appellant admitted to considering the relevant records & written submissions filed by the appellant before Ld. CIT(A), But the A.O. has not commented anything upon the merits of the case in , But the A.O. has not commented anything upon the merits of the case in , But the A.O. has not commented anything upon the merits of the case in such report. The AO has only objected that adequate opportunity was provided to the such report. The AO has only objected that adequate opportunity was provided to the such report. The AO has only objected that adequate opportunity was provided to the assessee in course of assessment proceedings therefore the assessee cannot take the plea in assessee in course of assessment proceedings therefore the assessee cannot take the plea in assessee in course of assessment proceedings therefore the assessee cannot take the plea in appellant proceedings that adequate opportunity was not provided to it in course of nt proceedings that adequate opportunity was not provided to it in course of nt proceedings that adequate opportunity was not provided to it in course of assessment proceedings, The AO was redirected to send the Remand Report after assessment proceedings, The AO was redirected to send the Remand Report after assessment proceedings, The AO was redirected to send the Remand Report after considering the merits of the case. Therefore in the Remand Report dated 11.10.2017 the considering the merits of the case. Therefore in the Remand Report dated 11.10.2017 the considering the merits of the case. Therefore in the Remand Report dated 11.10.2017 the AO has furnished another report. In this report also the AO has repeated the same hed another report. In this report also the AO has repeated the same hed another report. In this report also the AO has repeated the same allegation as mentioned in the original assessment order. However, the AO also mentioned allegation as mentioned in the original assessment order. However, the AO also mentioned allegation as mentioned in the original assessment order. However, the AO also mentioned that in respect of following issues i.e. (i) Unsecured Loan u/s 68 of Rs.1,42,95,699/ that in respect of following issues i.e. (i) Unsecured Loan u/s 68 of Rs.1,42,95,699/ that in respect of following issues i.e. (i) Unsecured Loan u/s 68 of Rs.1,42,95,699/-, (ii) Advance received u/s 68 of Rs.1,30,00,000/ ce received u/s 68 of Rs.1,30,00,000/-& (iii) Trade payable u/s 68 of Rs. 16,20,000/ & (iii) Trade payable u/s 68 of Rs. 16,20,000/- details were furnished in assessment proceedings but no address of parties were furnished. details were furnished in assessment proceedings but no address of parties were furnished. details were furnished in assessment proceedings but no address of parties were furnished. It is submitted that the Remand Report should be held to be factually incorrect It is submitted that the Remand Report should be held to be factually incorrect It is submitted that the Remand Report should be held to be factually incorrect in view of the specific submissions and evidences filed in course of assessment proceedings as well as the specific submissions and evidences filed in course of assessment proceedings as well as the specific submissions and evidences filed in course of assessment proceedings as well as appellate proceedings in the form of Paper Book. Complete details in respect of loan appellate proceedings in the form of Paper Book. Complete details in respect of loan appellate proceedings in the form of Paper Book. Complete details in respect of loan transactions along with confirmations were filed before AO. Similar transactions along with confirmations were filed before AO. Similarly, complete address in ly, complete address in respect of other issues were filed before AO. Therefore the AO cannot say that addresses respect of other issues were filed before AO. Therefore the AO cannot say that addresses respect of other issues were filed before AO. Therefore the AO cannot say that addresses were not furnished in course of assessment proceedings. The AO had complete details were not furnished in course of assessment proceedings. The AO had complete details were not furnished in course of assessment proceedings. The AO had complete details available before him in course of remand proceedings. Howev available before him in course of remand proceedings. However, again the AO. has chosen er, again the AO. has chosen not to comment upon any of the explanations or evidences furnished by the appellant. The not to comment upon any of the explanations or evidences furnished by the appellant. The not to comment upon any of the explanations or evidences furnished by the appellant. The AO has not pointed out any defect/deficiency in any of the documents submitted before him. AO has not pointed out any defect/deficiency in any of the documents submitted before him. AO has not pointed out any defect/deficiency in any of the documents submitted before him. The AO vide this office letter dated 22.08.201 The AO vide this office letter dated 22.08.2017 and 26.09.2017 was asked for remand 7 and 26.09.2017 was asked for remand report in the matter and it was sent vide his letter dated 13.09.2017 and 11.10.2017. The report in the matter and it was sent vide his letter dated 13.09.2017 and 11.10.2017. The report in the matter and it was sent vide his letter dated 13.09.2017 and 11.10.2017. The AO in his remand report has mentioned that the assessee appeared and submitted AO in his remand report has mentioned that the assessee appeared and submitted AO in his remand report has mentioned that the assessee appeared and submitted perfunctory details like group summary of trade perfunctory details like group summary of trade payable received and party wise details, payable received and party wise details, which did not contain address of the parties. The AR during the appellate proceeding filed which did not contain address of the parties. The AR during the appellate proceeding filed which did not contain address of the parties. The AR during the appellate proceeding filed copy of letter submitted before the AO during the assessment proceeding and the same copy of letter submitted before the AO during the assessment proceeding and the same copy of letter submitted before the AO during the assessment proceeding and the same along with enclosures were also sent a along with enclosures were also sent at the time of asking for remand report from the AO. t the time of asking for remand report from the AO. While going through the details enclosed with above referred letter, it is clear that the While going through the details enclosed with above referred letter, it is clear that the While going through the details enclosed with above referred letter, it is clear that the letter itself contained name and address of the party with PAN and copy of invoice. These letter itself contained name and address of the party with PAN and copy of invoice. These letter itself contained name and address of the party with PAN and copy of invoice. These document were also sent document were also sent the AO at the time of asking remand report in the matter. The AO the AO at the time of asking remand report in the matter. The AO instead of issuing' the summon u/s 131 to the lender for verification of identity, financial instead of issuing' the summon u/s 131 to the lender for verification of identity, financial instead of issuing' the summon u/s 131 to the lender for verification of identity, financial capacity and genuineness of the transaction, issued summon to the directors of the capacity and genuineness of the transaction, issued summon to the directors of the capacity and genuineness of the transaction, issued summon to the directors of the company who has already filed all the relevant details like list of the party, conformation already filed all the relevant details like list of the party, conformation already filed all the relevant details like list of the party, conformation And thereafter, the Ld CIT(A) deleted the addition and source of the fund.” and source of the fund.”And thereafter, the Ld CIT(A) deleted the addition

raised by the revenue. the Ld. CIT(A) and dismiss the ground of appeal raised by the revenue. the Ld. CIT(A) and dismiss the ground of appeal raised by the revenue. In the result, appeals of the revenue are dismissed.

34. In the result, appeal Order is pronounced in the open court on 6th December Order is pronounced in the open cour ecember, 2019.

Sd/- (Dr. A. L. Saini) Sd/- -(Aby. T. Varkey) Accountant Member Judicial Judicial Member Dated : 6th December, 2019 SC.(Sr.P.S.) Copy of the order forwarded to: Copy of the order forwarded to: 1. Appellant – D.C.I.T., Circle D.C.I.T., Circle-4(2), Kolkata 2 Respondent – M/s. R.M. Commercial Pvt. Ltd. M/s. R.M. Commercial Pvt. Ltd. 19/6, Nayan Chand Dutt Street 19/6, Nayan Chand Dutt Street Ground Floor Kolkata – 700 006 700 006

3. CIT(IT&TP), Kolkata Kolkata. (sent through e-mail)