DCIT CC 45, MUMBAI V. ASPIRE MERCANTILE P.LTD, NAVI MUMBAI

ITA 2186/MUM/2011

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8157 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 11 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2017
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 28-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 17-03-2011
• Court: TRIBUNAL
• Assessee Lawyers: S PADMAJA
• Keywords: Unexplained cash credit; Corroborative evidences; Accommodation entries; Onus to prove
• Section: 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO.2186/MUM./2011 ( ASSESSMENT YEAR :2007 - 08 ) DCIT CC 45 AAYAKAR BHAVAN, MUMBAI 400 020 . APPELLANT V/S ASPIRE MERCANTILE P. LTD., SHOP NO. 1 HINDVI BHAVAN, PLOT NO. 13 SECT - 1, VASHI, NAVI MUMBAI PAN AAFCA1712M . RESPONDENT ITA NO.1472/MUM./2011 ( ASSESSMENT YEAR :2007 - 08 ) ASPIRE MERCANTILE P. LTD., SHOP NO. 1 HINDVI BHAVAN, PLOT NO. 13 SECT - 1, VASHI, NAVI MUMBAI PAN AAFCA1712M . APPELLANT V/S ACIT CEN CIR 45 MUMBAI . RESPONDENT ASSESSEE BY : SHRI. S. PADMAJA REVENUE BY : NONE DATE OF HEARING 28.02.2017 DATE OF ORDER 16.03.2017 ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 2 O R D E R PER: SHAMIM YAHYA THESE ARE CROSS APPEAL BY THE REVENUE AND ASSESSEE DIRECTED AGAINST ORDER OF CIT - A DATED 30.12.2010 AND PERTAIN TO ASSESSMENT YEAR 2007 - 08. 2. THE GROUNDS OF APPEAL READ AS UNDER: REVENUE APPEALS ITA NO. 2186 I. ON THE FACTS AND CIRCUMSTANC ES OF THE CASE AND IN LAW, THE CIT (A) ERRED IN DELETING THE ADDITION OF RS.1, 95,00,000/ - MADE IN RESPECT OF ALLEGED SHARE APPLICATION MONEY MERELY RELYING ON THE FACTS THAT THE ALLEGED SHARE APPLICANTS WERE INCORPORATED AS COMPANIES AND THEREFORE THEIR IDENTITY COULD NOT BE DENIED BUT WITHOUT APPRECIATING THAT DURING THE SEARCH IT WAS FOUND THAT THE ALLEGED SHARE APPLICANTS WERE INDULGING IN ACCOMMODATION TRANSACTIONS AND WERE NEVER PRODUCED FO R VERIFICATION / EXAMINATION BE FORE THE ASSESSING OF TO PROVE THEIR CREDITWORTHINESS AND GENUINENESS OF/HE TRANSACTIONS AS REQUIRED U/S. 68 OF THE ACT.' II . ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND I N LAW, THE CIT(A) WAS NOT JUSTIFI ED IN DELETING THE ADDITION OF RS. 1,25,8 5,000/ - MADE U/S 68 OF THE ACT BY HOLDING THAT THE LOAN CREDITOR WAS ASSESSED TO TAX IN THE SAME CHARGE, HENCE ITS IDENTITY COULD NOT HE DOUBTED, BUT IGNORING THAT THE CAPACITY OF CREDITOR AND GENUINENESS OF TRANSACTIONS HAD NOT BEEN PROVED ', SINCE PARTY WAS FOUND TO ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 3 INDULGING IN PAPER TRANSACTIONS, AND THEREFORE THE ASSESSEE HADFAILED TO DISCHARGE THE ONUS CAST UPON HIM.' THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. THE AP PELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND AND /OR ADD NEW GROUNDS WHICH MAY BE NECESSARY. ASSESSEES APPEAL ITA NO. 1472 I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, THE LEARNED CIT (A) ERRED IN CONFIRMING THE ADDITIONS OF RS. 5,60,42485/ RECEIVED BY THE APPELLANT TOWARDS UNSECURED LOANS AS UNEXPLAINED CASH CREDITS U/S 68 OF THE INCOME TAX ACT, 1961. II) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, THE LEARNED CIT (A) HAVE NOT APPRECIATED THE FACTS THAT ALL THE UNSECURED LOAN RECEIPTS ARE SUPPORTED BY CONFIRMATION OF PARTIES AND ALSO THEIR RETURN ACKNOWLEDGEMENT WITH BALANCE SHEET. ALL THE SUPPORTING EVIDENCES HAS BEEN SUBMITTED TO THE LEARNED CIT (A). III) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT (A) ERRED IN CONFIRMING INTEREST CHARGED. IV) ALL THE ABOVE GROUNDS OF APPEAL ARE MUTUALLY EXCLUSIVE AND WITHOUT PREJUDICE TO EACH OTHER. V) THE ASSESSEE PRAYS FOR LEAVE TO ADD, ALTER OR AMEND ANY OR ALL OF THE ABOVE GROUNDS OF APPEAL AT OR BEF ORE THE DATE OF HEARING. ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 4 3. IN THIS CASE THE ASSESSING OFFICER NOTE D THE ASSESSEE HAS RECEIVED FOLLOWING SHARE APPLICATION MONEY. NAME OF THE PARTY SHARE APPLICATION MONEY (RS.) REMARKS M/S. RUBICON PHARMACEUTICALS PVT. LTD. 1,90,00,000/ - FACE VALUE RS.1/ - PREMIUM @ RS. 199/ - PER SHARE. M/S. BOMBAIYA FILMS PVT. LTD. 5,00,000/ - FACE VALUE RS.1/ - PREMIUM @ RS. 199/ - PER SHARE. TOTAL: 1,95,00,00 0/ - 4. ASSESSING OFFICER WANTED TO EXAMINE THE IDENTITY THE, CREDIT WORTHINESS AND GENUINENESS OF THESE PARTIES TRANSACTIONS . THE A.O. REQUESTED THE ASSESSEE TO PRODU CE THESE PARTIES. HOWEVER, THEY WERE NO SO PRODUCED. 5. THE A.O ISSUE D SUMMON U/S. 131 TO THE DIRECTORS OF M/S. BOMBAIYA FILMS PVT. LTD. A.O. RECORDED STATEMENT OF THE DIRECTORS . F ROM THE STATEMENT OF THE DIRECTORS REPRODUCED IN THE ASSESSMENT ORDER THE A.O. OBSERVED AS UNDER: AS CLEAR FROM THE ABOVE STATEMENT MR. DEEPAK G . GOHLI AND MRS. NAINA D. GOHLI, THEY DONT HAVE MUCH ROLE TO PLAY AS DIRECTORS OF M/S. BOMBAIYA FILMS PVT. LTD. THEY WERE USED FOR THE PURPOSE OF ACCOUNT INTRODUCTI ON AND SIGNING OF CHEQUES. THEY WERE NOT AWARE OF THE HUGE TRANSACTIONS IN THE BANK STATEME NT OF M/S. BOMBAIYA FILMS PVT. LTD. FOR THIS THEY RECEIVED A MONTHLY LUMP - SUM AMOUNT FROM MR. SHAILESH M. SHAH, WHO WAS MAINLY CONTROLLING THE COMPANY. EVEN MR. SHAILESH M. SHAH IN HIS STATEMENT HAS ADMITTED THAT ALL THESE TRANSACTIONS ARE MERELY ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 5 ACCOMMODA TION ENTRIES BACKED BY CASH. THEY DONT HAVE THE CAPACITY TO ADVANCE SUCH HUGE SUM OF MONEY TO ANYBODY. 6. ASSESSING OFFICER FURTHER, ISSUE D SUMMONS TO THE DIRECTORS OF M/S. RUBICON PHARMACEUTICALS PVT. LTD. THE DIRECTORS OF THESE COMPANY WERE ALSO DIREC TOR IN FOUR OTHER COMPANIES. THE A.O. ISSUE SUMMONS U/S. 131 TO SHRI. SURAJ PRAKASH JINDAL DIRECTOR OF THESE FIVE COMPANIES. HE RECORDED HIS STATEMENT. FOR MOST OF THE TRANSACTIONS HIS REPLY WAS I CANNOT RECOLLECT AND REMEMBER THE NATURE OF OTHER DETAILS OF TRANSACTIONS. THE A.O. REPRODUCED THE STATEMENT SO OBTAIN IN THE ASSESSMENT ORDER. ON THE BASIS OF THESE STATEMENT THE A.O. OBSERVED THAT THE SAID PERSON WAS NOT AWARE OF THE T RANSACTIONS ITS SOURCE, ITS GENUINENESS AND IDENTITY OF THEPERSON INVOLVED. THAT SHRI. JINDAL COULD NOT ESTABLISH THE CREDIT WORTHINESS OF THE COMPANY. 7. ASSESSING OFFICER FURTHER NOTED THAT ASSESSEE HAS RECEIVED UNSECURED LOANS AS UNDER: S.NO. NAME OF THE PARTY AMOUNTS (RS.) 1. M/S. THREE A BROTHERS 2,30,00,000/ - 2. ACCURATE MERCANTILE PVT. LTD. 90,85,000/ - 3. M/S. HARANBA FINVEST SER. PVT. LTD. 25,00,000/ - 4. M/S. NIKETAN MERCANTILE PVT. LTD. 10,00,000/ - 5. M/S. NISHA ENTERPRISES 2,38,40,000/ - 6. MR. NITIN SONI 36,50,000/ - 7. M/S. RADHE SOFTWARE SOLUTION PVT. LTD. 2,50,000/ - 8. M/S. SHREE SIDDHI STEEL 28,75,000/ - 9. M/S. INDIA INFOLINE SEC. PVT. LTD. 49,77,485/ - TOTAL: 7,11,77,485/ - ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 6 8. ASSESSING OFFICER EXAMINE D THE DIRECTOR OF M/S. ACCURATE MERCANTILE PVT. LTD. , M/S. NIKETAN MERCANTILE PVT. LTD. HE ALSO EXAMINE D THE PROPRIETOR OF M/S. NISHA ENTERPRISES, DIRECTOR OF M/S. SHRI RADHE SOFTWARE SOLUTION PVT. LTD. ON THE BASIS OF THEIR STATEM ENT THE A.O. OBSERVED THAT THEY WERE INDULGING IN PRACTICE OF PROVIDING VARIO US TYPES ENTRIES, T O THE BENEFICIARIES AS ACCOMMODATION ENTRY. A.O FURTHER NOTED THAT OTHER PARTIES COULD NOT BE PRODUCED. A.O FURTHER NOTED THAT THERE WERE VARIOUS ENTRY OPERATORS OPERATING IN MUMBAI AND KOLKATA AND THEY HAVE OPENED BANK ACCOUNTS IN THE N AME OF COMPANIE S AND CONCERN . A.O MENTIONED THEIR DETAILS AND MODUS OPERANDI IN GREAT DETAILS. THE ASSESSING OFFICER CONCLUDED AS UNDER: KEEPING IN VIEW OF THE DISCUSSION, AS MENTIONED IN PARAS - 6 TO 10, SHARE APPL ICATION MONEY OF RS.1,95,00,000/ - AND UN SECURED LOANS OF RS.7,11,77,485/ - IN TOTAL RS.9,06,77,4851 - ARE ADDED U/S.68 OF I.T. ACT, 1961 AS - (I) THE ASSESSEE FAILED TO FILE THE CONFIRMATION FROM THE RESPECTIVE SHAREHOLDERS. (II) THE ASSESSEE FAILED TO PRODUCE THE RESPECTIVE SHAREHOLDERS, FROM WHERE THE SHARE APPLICATION WAS RECEIVED. (III) THEY FAILED TO PROVE THE IDENTITY OF THE SHAREHOLDERS AS THEY WERE FOUND TO BE NONEXISTENT ON THE ADDRESS MENTIONED IN THE BANK STATEMENT. (IV) THEY FAILED TO PROVE THE CREDITWORTHINESS OF THE SHAREHOLDERS AS NONE OF THE SHAREHOLDER AS MENTIONED IN THE LIST OF THE SHARE APPLICATION MONEY RECEIVED DURING THE YEAR HAS THE CAPACITY TO ADVANCE SUCH HUGE SUM OF MONEY ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 7 (V) THEY FAILED TO PROVE THE GENUINENESS OF THE TRANSACTIONS (VI) THE ASSESSEE COMPANY PAID THE CASH AND RECEIVED SHARE APPLICATI ON MONEY BY CHEUQE . (VII) NONE OF THE PARTIES WHO WERE USED IN THE CHAIN OF TRANSFER OF ENTRIES WERE NOT PRODUCED IF VERIFIED. (VIII) THE ASSESSEE HAS FAILED TO DISCHARGE ITS PRIMARY ONUS TO PROVE THE IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE SHARE APPLICANTS. (IX) THE ASSESSEE DIDN'T COME FORWARD FOR CROSS EXAMINATION OF THE PARTIES WHO STATED THAT ALL THESE ARE ACCOMMODATION ENTRIES. (X) THE DIRECTOR OF THE COMPANY, MR. SURAJ PRAKASH JINDAL WAS NOT AWARE OF ANYTHING ABOUT THE COMPANY AND FOR EVERY QUESTION HE STATED THAT 'I DON'T KNOW & I DON'T REMEMBER 9. UPON ASSESSEE APPEAL LD. CIT - A REFERRED TO THE HONBLE APEX COURT DECISION IN THE CASE OF LOVELY EXPORTS. HE NOTED THAT ASSESSEE COMPANY HAS RECEIVED SHARE APPLICATION MO NEY. THE NAME, PAN, BALANCE - SHEET, BANK STATEMENT AND CONFORMATION LETTER WERE SUBMITTED TO THE A.O. LD. CIT - A CONCLUDED AS UNDER: IN THE CASE OF SHARE APPLICATION HEREIN, ALL SHARE HOLDERS WHOSE CONTRIBUTIONS HAVE BEEN ASSESSED BY THE AO AS APPELLANT'S I NCOME UNDER THE PRO VISION OF THE SECTION 68 ARE DULY INCORPORATED COMPANIES. IN THE CASE OF INCORPORATED COMPANY, THE EXISTENCE OF THE PARTY CANNOT BE DENIED. ONCE INCORPOR ATED , A COMPANY EXISTS UNTIL LIQUIDATED IN ACCORDANCE WITH LAW. IF IT IS THE CASE OF THE AO THAT THESE ART' BOGUS SHAREHOLDERS THEN THE DEPAR TMENT IS FREE TO PROCEED TO REOPEN THEIR ASSESSMENTS IN ACCORDANCE ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 8 WITH LAW. BUT IN CASE O F APPELLANT, ONCE EXISTENCE OF THE SHAREHOLDERS IS NOT IN DOUBT, NO FURTHER ACTION LIES AND THE AMOUNT OF SHA RE CAPITAL CANNOT BE ASSESSED AS APPELLANT COMPANY'S INCOME CHARGEABLE TO TAX. IN VIEW OF THIS LEGAL POSITION DECLARED BY THE HIGHEST COURT OF THE LAND, I HOLD THAT THE ADDITION OF RS. 1,95,00000/, BEING THE AMOUNT OF SHARE APPLICATIO N MONEY MADE BY THE AO IN THIS BEHALF ARE REQUIRED TO BE DELETED IN THE IMPUGN ED ASSESSMENT YEAR AS ALL THE LIMBS DISCUSSED IN THE DECISION OF LO VELY EXPORTS STANDS TRUE IN THIS CASE . 10. AS REGARD THE ISSUE OF UNSECURED LOAN, LD. CIT - A HELD AS UNDER: I HAVE CONSIDERED THE E VIDENCE PRODUCED BEFORE ME AS WELL AS THE REMAND REPORT OF THE A.O. WHILE GOING THROUGH THE SAME, I FIND THAT THE ACCURATE MERCANTILE PVT. LTD. HERANBA FINVEST SER. PVT. LTD AND NIKETAN MERCANTILE PRIVATE LIMITED ARE ASSESSED TO TAX IN THE SAME CHARGE. THE IDENTITY OF THESE LOAN CREDITORS HENCE COULD NOT BE IN DOUBT. THE BALANCE SHEET AND ACCOUNTS OF THESE COMPANIES ARE ON RECORD AND THE LOAN TRANSACTIONS ARE REFLECTED IN THESE BOOKS OF ACCOUNTS AND HENCE THE CAPACITY OF THESE LOAN CREDITORS CANNOT BE DOUBT ED. THESE TRANSACTIONS STAND PROVED AND HENCE THE ADDITIONS ON ACCOUNT OF UNSECURED LOANS FROM THESE CREDITORS ARE DELETED. THE APPELLANT HAS FILED LOAN CONFIRMATION FROM M/S. NISHA ENTERPRISES. IN THIS CASE THE STATEMENT OF THE PROPRIETOR OF THE FIRM HA S STATED ON OATH THAT THE TRANSACTIONS WITH M/S. ASPIRE MERCANTILE PVT. LTD. ARE MERELY ACCOMODATIONS ENTRIES. ALL THE TRANSACTIONS ARE LIEU BY CASH. SHREE SIDDHI STEEL AND THREE. A BROS ARE THE PARTNERSHIP FIRMS OF THE DIRECTORS OF THE ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 9 APPELLANT FIRM. THE ASSESSEE HAD FILED THE LOAN CONFIRMATION FORM M/S. RADHE SOFTWARE SOLUTIONS PVT. LTD. TOGETHER WITH ITS RETURN ACKNOWLEDGMENT AND BALANCE SHEET. IN RESPECT OF LOAN FROM THESE PARTIES I HAVE SEEN THAT THOUGH THE ASSESSEE FILED LOAN CONFIRMATIONS BEFORE ME SUPPORTED BY THEIR RETURN ACKNOWLEDGEMENT AND BALANCE SHEET IN MOST CASES, THE INITIAL ONUS IS NOT DISCHARGED AND THE ASSESSEE HAS FAILED TO SUBSTANTIATE THE GENUINENESS OF THESE TRANSACTIONS HENCE I TREAT THESE UNSECURED LOANS AS UNEXPLAINED INCOME OF THE ASSESSEE. HENCE THE ADDITION U/S. 68 IN RESPECT OF UNSECURED LOANS FROM THESE PARTIES IS CONFIRMED. THE AR HAS DRAWN MY ATTENTION TO THE TACT TH AT IN RESPECT OF ADDITIONS OF R S. 2,38,40,000/. BEING THE LOAN TAKEN FROM M / S . NIS H A ENTERPRISE, THE SAID AMO UNT INCLUDES THE OPENING CREDIT BALANCE. OF RS. 2 5, 50,000 WHICH AMOUNT HAS ALREADY BEEN ADDED U /S 68 OF THE INCOME TAX ACT, 1961 IN ASSESSMENT YEAR 2006 - 07 AND HENCE AMOUNTS TO DOUBLE ADDITIONS. THE CONTENTION OF THE APPELLANT IS FOUND CORRECT AND HENCE TH E ADDITION ON ACCOUNT OF UNSECURED LOAN OF RS. 2,38,40,000/ - IN THE ACCOUNT OF THE SAID NISHA ENTERPRISES IS RESTRICTED TO R S. 2.12,90,000/ - . THUS, THE ADDITIONS IN RESPECT OF WHICH THE ADDITIONS ARE CONFIRMED ARE AS UNDER: S.NO. NAME OF LENDER AMOUNT RECEIVED 1. NISHA ENTERPRISES 2,12,90,000/ - 2. SHREE SIDDHI STEEL 28,75,000/ - 3. THREE A BROTHERS 2,30,00,000/ - 4. INDIA INFOLINE PVT. LTD. 49,77,485/ - 5. SHREE RADHE SOFTWARE SOLTUIONS PVT. LTD. 2,50,000/ - 6. NITIN SONI 36,50,000/ - TOTAL 5,60,42,485/ - ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 10 11. AGAINST THE ABOVE ORDERS REVENUE AND ASSESSEE ARE IN CROSS APPEAL BEFORE US . W E HAVE HEARD THE LD. DR . NON - APPEARED ON BEHALF OF THE ASSE SSEE. IT IS ALSO NOTED THAT THESE APPEAL S ARE PENDING SINCE 2011. SEVERAL NOTICES HAVE BEEN GIVEN TO THE ASSESSEE AND NONE IS APPEARING ON BEHALF OF THE ASSESSEE. HENCE WE PROCEED TO ADJUDICATE THE ISSUE ON THE BASIS PERUSAL OF RECORDS AND HEARING LD. DR. 12. AS REGARDS THE ISSU E OF SHARE APPLICATION MONEY WE NOTE THAT ASSESSEE HAS RECEIVED SHARE APPLICATION MONEY FROM TWO PVT. LTD. COMPANIES AMOUNTING TO RS.1,95,00000/ - A.O. HAS EXAMINED THE DIRECTORS OF THESE COMPANIES. FROM THE SAID EXAMINATION REPRODUCED IN THE ASSESSMENT OR DER IT IS CLEAR THAT THESE DIRECTORS WERE TOTALLY UNAWARE OF THE TRANSACTIONS OF THE COMPANY . F R OM THEIR STATEMENTS THE A.O. HAS BROUGHT ON RECORD THAT THEY COULD NOT CORROBORATE THE IDENTITY OF THIS TRANSACTIONS THE GENUINENESS, CREDIT WORT HINESS. AS AGAI NST THE ABOVE ELABORATE FINDING O F THE A.O, T HE LD. CIT - A HAS DELETED THE ENTIRE ADDITION ON THE GROUND THAT THESE ARE COMPANIES AND THE MONEY RECEIVED THOUGH BANKING CHANNEL. WE FIND THAT JUST BECAUSE THESE SHARE APPLICANT ARE COMPANIES AND THE MONEY HAS BEEN RECEIVED THROUGH BANKING CHANNEL IT DOESNT MEAN THAT THE IDENTITY CREDIT WORTHINESS AND GENUINENESS AND THE TRANSACTIONS ARE DISCLOSED. THE A.O. HAS MADE ELABORATE ENQUIRY AND HAS EXAMINED THE DIRECTORS OF THESE COMPANIES WHICH HAS CLEARLY BROUGHT ON RECORD THAT THESE ARE ACCOMMODATION ENTRIES. IN SUCH CIRCUMSTANCES IN OUR CONSIDERED OPINION THE ORDER OF LD. CIT - A IS NOT AT ALL SUSTAINABLE . A CCORDINGLY AS ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 11 REGARD S THE ISSUE OF ADDITION ON SHARE APPLICATION MONEY WE SET ASIDE ORDER OF LD. CIT - A AND REST ORED THE A.OS ORDER. THE ADDITION STANDS CONFIRMED. 13. AS REGARDS THE ISSUE OF UNSECURED LOAN ALSO ASSESSING OFFICER HAS BROUGHT ON RECORD THE STATEMENT OF THE DIRECTORS AND PROPRIETOR S OF THE LOAN GIVERS AND ON THAT BASIS HE HAS COME TO THE CONCLUSION THAT THE UNSECURED LOANS WERE ACTUALLY ACCOMMODATION ENTRIES. LD. CIT - A HAS DELETED THE ADDITION ON THE GROUND THAT SOME OF THE ASSESSEES ARE ASSESS ED TO TA X IN THE SAME RANGE. HENCE THEIR IDENTITIES IS NOT IN DOUB T. THAT THE BALANCE SHEET ARE ON RECORD HENCE THIS TRANSACTIONS ARE PROVED. WE FIND THAT LD. CIT - A HERE AGAIN HAS IGNORED THE EVIDENCES AND THE STATEMENTS OBTAIN BY THE A.O. IT IS ALSO NOT THE CASE THAT LD. CIT - A HAS EXAMINED THE PARTIES OR THE ACCOUNTS HI MSELF. HENCE THE CONCLUSION REGARDING THE GENUINENESS OF THESE LOANS DRAWN BY THE LD. CIT - A IS ALSO NOT AT ALL SUSTAINABLE. THUS WE FIND THAT THE DELETION OF ADDITION UNSECURED LOAN BY THE LD. CIT - A IS NOT BASED UPON ANY COGENT FINDING. ONLY WITH REGAR D TO M/S. NISHA ENTERPRISES WHERE LD. CIT - A HAS GIVEN A FINDING THAT A SUM OF THE RS. 25,50000/ - WAS AND OPENING BALANCE WHICH WAS ALREADY ADDED U/S. 68 IN THE ASSESSMENT YEAR 2006 - 07. HENCE EXCEPT DELETION OF 25,50 , 00 0 / - OF THIS ACCOUNT WE SET ASIDE THE ORDER BY THE CIT - A ON THE ISSUE OF DELETION OF UNSECURED LOAN . HENCE, THE ADDITION BY THE AO IN THIS REGARD IS CONFIRMED EXCEPT FOR A SUM OF RS. 25,50,000/ - AS DELETED ABOVE. IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS DISMISSED AND APPEAL BY THE REVEN UE STAND S PARTLY ALLOWED. ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 12 ORDER PRONOUNCED IN THE OPEN COURT ON 16.03.2017 SD/ - SD/ - RAVISH SOOD SHAMIM YAHIYA JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 16.03.2017 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER NISHANT VERMA SR. PRIVATE SECRETARY (DY./ASSTT.REGISTRAR) ITAT, MUMBAI ASPIRE MERCANTILE P. LTD. ITA NO.2186/MUM./2011 13 DATE INITIAL 1. DRAFT DICTATED ON 09.03 .2017 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 10.03 .2017 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 10 .03.0217 SR.PS 6. DATE OF PRONOUNCEMENT 16 .03.2017 SR.PS 7. FILE SENT TO THE BENCH CLERK .03.2017 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER