The ITO, Ward-2(1)(1), Ahmedabad V. Gujarat Craft Industries Pvt. Ltd., Ahmedabad

ITA 2348/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8377 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 07-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Assessee Lawyers: G C PIPARA
• Keywords: Unexplained cash credit
• Section: 143(3); 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 2348/AHD/2015 (ASSESSMENT YEAR: 2012-13) THE I.T.O., WARD- 2(1)(1), NAVJIVAN TRUST BLDG., OFF. ASHRAM ROAD, 1 ST FLOOR, ROOM NO.104, AHMEDABAD-380014 APPELLANT VS. GUJARAT CRAFT INDUSTRIES PVT. LTD., 35, OMKAR HOUSE, NR. SWASTIK CHAR RASTA, C. G. ROAD, NAVRANGPURA, AHMEDABAD RESPONDENT PAN: AAACG5615N /BY REVENUE : NIDHI SRIVASTAVA, CIT. D.R. /BY ASSESSEE : G. C. PIPARA, A.R. /DATE OF HEARING : 04.10.2017 /DATE OF PRONOUNCEMENT : 10.10.2017 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2012-13 A RISES AGAINST THE CIT(A)-2, AHMEDABADS ORDER DATED 27.05.2015 IN CAS E NO. CIT(A)- 4/241/ITO.6(2)/14-15, REVERSING ASSESSING OFFICERS ACTION MAKING SECTION 68 ADDITION OF UNEXPLAINED CASH CREDITS AMOUNTING TO R S.6,87,47,490/- IN RESPECT OF UNSECURED LOANS OBTAINED FROM 13 PARTIES, IN PROCEE DINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH SIDES. CASE FILE PERUSED. ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 2 - 2. THE REVENUES SOLITARY SUBSTANTIVE GRIEVANCE SEE KS TO REVIVE THE ABOVESTATED UNEXPLAINED CASH CREDITS ADDITION IN THE NATURE OF UNSECURED LOAN. THIS ASSESSEE IS A COMPANY MANUFACTURING HDPE/PP WOVEN FABRICS, WOVE N SACKS AND TARPAULIN SHEETS. THE ASSESSING OFFICER NOTICED IN THE COURS E OF SCRUTINY THAT IT HAD RECEIVED UNSECURED LOANS IN QUESTION FROM 13 ENTITIES NAMELY M/S. BOSCO CHEMTEX, APA FINANCE LTD., DECENT FABRICS PVT. LTD., ETHNIC APPA RELS PVT. LTD., CASTLE HOUSING & DEVELOPMENT PVT. LTD., INDIAN AGROTECH LTD., WOR LDWIDE IMPEX PVT. LTD., SIGMA POLYFILMS, TECHNOMAD PROPERTIES PVT. LTD., TY PHOON FINANCIAL SERVICES LTD., SANWARIA VINTRADE PVT. LTD., RISHABH BUSINESS PVT. LTD. & WOODLAND CONS. SERVICES PVT. LTD. INVOLVING CORRESPONDING SUMS OF RS.25.40LACS, RS.14LACS, RS.35,000/-, RS.1LAC, RS.2.5LACS, RS.19LACS, RS.67. 40LACS, RS.14.25LACS, RS.26.45LACS, RS.454.45LACS, RS.13LACS, RS.3.35LACS & RS.46.32LACS; RESPECTIVELY. HE ASKED THE ASSESSEE TO PRODUCE GENUINENESS/CREDIT WORTHINESS QUA THE SAID PARTIES. WE NOTICE FROM ASSESSMENT ORDER DATED 29.12.2014 TH AT 9 PARTIES HEREINABOVE ARE THE SAME AS IN ASSESSMENT YEAR 2010-11 WHEREIN THE ASSESSING OFFICER HAD MADE IDENTICAL ADDITIONS ACCEPTING CASES OF M/S. INDIAN AGROTECH LTD., WORLDWIDE IMPEX, SIGMA POLYFILMS AND SANWARIA VINTRADE PVT. L TD. THE CIT(A) DELETED THE SAID ADDITION IN ASSESSMENT YEAR 2010-11 IN HIS LOW ER APPELLATE ORDERS 20.05.2014. THE ASSESSING OFFICER HOWEVER REITERATED HIS FINDIN GS IN THE IMPUGNED ASSESSMENT YEAR AS WELL THAT THESE 13 ENTITIES INTER ALIA DID NOT HAVE CAPACITY TO ADVANCE ABOVE HUGE SUMS. HE THEREFORE DOUBTED GENUINENESS/CREDIT WORTHINESS OF THE IMPUGNED UNSECURED LOANS SO AS TO TREAT THE SAME AS UNEXPLAI NED CASH CREDITS AMOUNTING TO RS.6,87,47,490/-. 3. THE CIT(A) REVERSES ASSESSING OFFICERS ACTION A S UNDER: 2.3. DECISION: I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE, THE ASSESSMENT ORDER AND THE WRITTEN SUBMISSION OF THE APPELLANT. THE ASSESSING OFFICER IN THE ASSESSMENT ORDER HAS HELD THAT SINCE THE ASSESSEE HAS FAILED TO PROVE TH E CREDITWORTHINESS & CAPACITY OF THE DEPOSITORS TO MAKE SUCH HUGE INTEREST FREE ADVANCES FOR THE YEAR UNDER CONSIDERATION FOR AN AMOUNT OF RS. 6,87,47,490/-, THE SAME IS TRE ATED AS UNEXPLAINED CASH CREDIT & ADDITION OF THE SAID AMOUNT IS MADE TO THE TOTAL IN COME OF THE ASSESSEE COMPANY UNDER SECTION 68 OF THE ACT. ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 3 - THE APPELLANT ON THE OTHER HAND HAS STATED IN ITS W RITTEN SUBMISSION THAT THE SAID OBSERVATIONS OF THE AO IS MERELY ON SURMISES A ND WITHOUT PROPER CONSIDERATION AND APPRECIATION OF THE DETAILS AND COMPREHENSIVE E VIDENCES WERE PLACED ON RECORD DURING THE COURSE OF ASSESSMENT PROCEEDINGS. FURTHE R, THE IMPUGNED ADDITION HAS BEEN MADE BY FOLLOWING THE ASSESSMENT ORDER FOR A.Y. 201 0-11 ON WHICH THE LD. CIT(A) HAS ALLOWED THE APPEAL IN FAVOUR OF THE APPELLANT AND T HE DEPARTMENT HAS PREFERRED SECOND APPEAL BEFORE ITAT, AHMEDABAD. THE APPELLANT HAS FU RTHER STATED THAT IT IS EVIDENT THAT THE AO HAS MADE THE IMPUGNED ADDITION IN RESPE CT OF SAME PARTIES WHICH WERE THERE IN A.Y. 2010-11 AND THERE ARE SAME SET OF FAC TS AND CIRCUMSTANCES OF THE CASE AND NO NEW MATERIAL OR EVIDENCES HAVE BEEN BROUGHT IN BY THE AO IN SUPPORT OF THE ADDITION MADE. THE APPELLANT HAS ALSO STATED THAT I TS CASE IS COVERED BY THE DECISION GIVEN BY THE CIT(A) - VIII, AHMEDABAD FOR A. Y. 201 0-11 VIDE ORDER DATED 20/05/2014. ON A CAREFUL CONSIDERATION OF ENTIRE FACTS OF THE CASE, IT IS NOTED THAT MOST OF THE DEPOSITORS FROM WHOM THE APPELLANT HAS ACCEPTED UNSECURED LOANS DURING THE YEAR ARE OLD AND THE APPELLANT HAD ACCEPTED UNSECURED LO ANS FROM THEM DURING A. Y. 2010 - 11. THE APPELLANT HAS ACCEPTED UNSECURED LOANS FROM 13 DEPOSITORS OUT OF WHICH ONLY FOUR PARTIES ARE NEW. IN RESPECT OF THE 9 DEPOSITOR S, THE ISSUE HAS BEEN DEALT BY ME IN THE CASE OF THE APPELLANT FOR THE A.Y. 2010-11 IN A PPEAL NO. CIT(A)- VIII/DCIT/CIR.4/67/13-14 DATED 20/05/2014. FOR THE SAKE OF CLARITY, THE FINDINGS GIVEN BY ME IN PARA-3.3 ARE REPRODUCED HERE UNDER: - I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE, THE ASSESSMENT ORDER AND THE WRITTEN SUBMISSION OF THE APPELLANT. THE AO HAS MADE THE ADDITION UNDER SECTION 68 OF THE ACT AMOUNTING TO RS. 1,89,63,000/ - AS THE APPELLANT COULD NOT SATISFACTORILY PROVE THE GENUINENESS OF THE LOANS T AKEN BY IT. THE AO HAS OBSERVED THAT SINCE THE APPELLANT COMPANY DID NOT P RODUCE EVEN A SINGLE PARTY AND PROVED THE GENUINENESS, HE WAS TREATING THE LOA NS AS UNEXPLAINED AS THE APPELLANT COULD NOT PROVE THE CREDIT WORTHINESS AND GENUINENESS OF THE DEPOSITORS. THE APPELLANT ON THE OTHER HAND HAS SUBMITTED THAT IT HAS GIVEN ALL THE INFORMATION RELATED TO THE DEPOSITS ACCEPTED BY IT. IT HAS BEEN SUBMITTED BY THE APPELLANT THAT IT HAD GIVEN CONFIRMATION OF THE PAR TIES WITH DETAILS OF THEIR ADDRESS AND PAN AS WELL AS INDICATED THAT THE TRANS ACTIONS WERE THROUGH BANKING CHANNELS. IT FURNISHED AND HAD ALSO EXPLAIN ED THE SOURCE OF THE SOURCE AS CERTIFIED BY THE PARTIES. IT HAS ALSO BEEN POINT ED OUT BY THE APPELLANT THAT THE AO HAD, ISSUED 133(6) NOTICES TO THE DEPOSITORS DIRECTLY AND ALL THE DEPOSITORS' HAVE CONFIRMED THE FACT OF GIVING LOANS . IT HAS BEEN CONTENDED BY THE APPELLANT THAT NO USEFUL PURPOSE WOULD BE SERVE D BY PRODUCING THE DEPOSITORS AS THE APPELLANT HAD GIVEN SUFFICIENT IN FORMATION TO PROVE THE DEPOSITS. IT HAS THEREFORE, BEEN SUBMITTED BY THE A PPELLANT THAT THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE DEPOSITORS HAVE BEEN PROVED AND THEREFORE, THE ADDITION MADE SHOULD BE DIRECTED TO BE DELETED. I HAVE CAREFULLY EXAMINED ALL THE FACTS RELATED TO VARIOUS DEPOSITORS. IT IS NOTED THAT THE APPELLANT HAS GIVEN SUFFICIENT INFORMATION IN RESPECT OF THE DEPOSITS ACCEPTED BY IT. OUT OF THE 13 DEPOSITORS FROM HOME THE APPELLANT HAS ACCEPTED DEPOSITS IT COMPANIES ARE GROUP COMPANIES OF THE AP PELLANT COMPANY. THE APPELLANT HAS GIVEN A CHART COMPILING THE INFORMATI ON RELATED TO THE DEPOSITS AND THE EVIDENCES FURNISHED BY IT DURING THE COURSE OF ASSESSMENT PROCEEDINGS ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 4 - IN RESPECT OF ALL THE DEPOSITS. FOR THE SAKE OF CON VENIENCE AND CLARITY THE CHART IS REPRODUCED HEREUNDER: - SR. NO. NAME OPENING BALANCE RECEIVED DURING THE YEAR PAID DURING THE YEAR CLOSING BALANCE EVIDENCES FURNISHED PATE NO. OF SUBMISSION REMARKS 1 BOSCO CHEMTEX PVT. LTD. NIL 18,30,000 3,61,000 14, 69,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 14,54 51 TO 53 55 TO 56 309 GROUP COMPANY AMOUNT OF RS. 3,61,000/- REPAID DURING THE YEAR ITSELF 2 APA 68, 76,872 9,29,000 NIL 78,05,872 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 16,70 67 TO 69 71 TO 84 310 GROUP COMPANY DEPOSITS HAVE ALSO BEEN RECEIVED IN EARLIER YEARS AND THERE IS OPENING BALANCE ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 5 - 3 DECENT FABRICS PVT. LTD. 1,38,000 11,02,000 4,79,000 7,61,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 18,88 85 TO 87 89 TO100 311 GROUP COMPANY DEPOSITS HAVE ALSO BEEN RECEIVED IN EARLIER YEARS AND THERE IS OPENING BALANCE AMOUNT OF RS. 4,79,000/- REPAID DURING THE YEAR ITSELF 4 GUDOO TEXCRAFT PVT. LTD. NIL 10,00,000 NIL 10,00,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES ACKNOWLEDGEMENT OF RETURN OF INCOME FOR A.Y. 2010-11 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 24,132 312 25 312 5 KOMAL JYOT GRAHSHIP PVT.LTD. NIL 10,00,000 NIL 10,00,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY 8 8 26,133 ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 6 - ACCOUNT PAYEE CHEQUES ACKNOWLEDGEMENT OF RETURN OF INCOME FOR A.Y. 2010-11 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 27 313 6 MERIDIAN HOTELS PVT. LTD. 10,00,000 10,00,000 10,00,000 10,00,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES ACKNOWLEDGEMENT OF RETURN OF INCOME FOR A.Y. 2010-11 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 28,134 29 314 DEPOSITS HAVE ALSO BEEN RECEIVED IN EARLIER YEARS AND THERE IS OPENING BALANCE AMOUNT OF RS. 10,00,000/- REPAID DURING THE YEAR ITSELF 7 TECHNOMOD PROPERTIES PVT. LTD. NIL 21,90,000 6,93,600 14,96,400 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE 8 8 30,138 135 TO 137 139 TO 137 315 GROUP COMPANY DEPOSITS HAVE ALSO BEEN RECEIVED IN EARLIER YEARS AND THERE IS OPENING BALANCE AMOUNT OF RS. 6,93,600/- REPAID DURING THE YEAR ITSELF ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 7 - UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 TYPHOON FINANCIAL SERVICES LIMITED 1,01,37,000 34,37,000 22,25,000 1,13,49,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 32,138 149 TO 151 153 TO 169 316 GROUP COMPANY DEPOSITS HAVE ALSO BEEN RECEIVED IN EARLIER YEARS AND THERE IS OPENING BALANCE AMOUNT OF RS. 22,25,000/- REPAID DURING THE YEAR ITSELF 9 DEEPJYOT COMMODITIES PVT. LTD. NIL 40,00,000 NIL 40,00,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES ACKNOWLEDGEMENT OF RETURN OF INCOME FOR A.Y. 2010-11 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 34,170 35 317 10 RISHABH BUSINESS PVT. LTD. 21,35,000 18 ,88,000 15,61,000 24,62,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION 8 8 36,174 GROUP COMPANY DEPOSITS HAVE ALSO BEEN RECEIVED IN ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 8 - WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 171 TO 173 175 TO 184 318 EARLIER YEARS AND THERE IS OPENING BALANCE AMOUNT OF RS. 15,61,000/- REPAID DURING THE YEAR ITSELF 11 WOODLAND CONSULTANCY SERVICES PVT. LTD. NIL 5,87,000 2,95,000 2,92,000 NAME AND ADDRESS OF THE PARTY PAN CONFIRMATION WHICH ALSO INDICATES THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNELS AND BY ACCOUNT PAYEE CHEQUES RETURN OF INCOME ALONG WITH ACKNOWLEDGEMENT FOR A.Y. 2010-11 AUDITED BALANCE SHEET AS AT 31.03.2010 PARTYS LETTER GIVING DETAILS OF SOURCE OF THE FUNDS FROM WHERE UNSECURED LOAN WAS GIVEN TO THE APPELLANT COMPANY 8 8 38,187 185 TO 186 188 TO 195 319 GROUP COMPANY DEPOSITS HAVE ALSO BEEN RECEIVED IN EARLIER YEARS AND THERE IS OPENING BALANCE AMOUNT OF RS. 2,95,000/- REPAID DURING THE YEAR ITSELF TOTAL 1,89,63,000 IT IS SEEN FROM THE ABOVE CHART THAT THE APPELLANT HAS GIVEN SUFFICIENT INFORMATION ABOUT THE DEPOSITORS. IN ALL THE CASES THE APPELLANT HAS GIVEN CONFIRMATION, COMPLETE POSTAL ADDRESS, PAN, RETURN OF INCOME' FOR THE RELEVANT YEAR AND ALSO THE BALANCE SHEET OF THE DEP OSITORS. IT IS NOTED THAT THE TRANSACTIONS ARE THROUGH BANKING CHANNEL. THE AO HA S MADE ENQUIRIES UNDER SECTION 133(6) FROM THE DEPOSITORS AND THE FACTS OF DEPOSITS HAVE BEEN CONFIRMED BY THE DEPOSITORS. IT IS FURTHER NOTED TH AT THE APPELLANT HAS ALSO GIVEN THE SOURCE OF THE SOURCE, I.E., THE SOURCE FR OM WHERE THE DEPOSITOR HAS ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 9 - DEPOSITED THE MONEY WITH THE APPELLANT. IT IS FURTH ER OBSERVED THAT IN NONE OF THE CASES THERE IS ANY FACT ON RECORD INDICATING TH AT ANY OF THE DEPOSITORS WAS IN THE BUSINESS OF GIVING ENTRY OR ACCOMMODATION LO ANS. THE MAJORITY OF THE DEPOSITORS WERE THE GROUP COMPANY. IN VIEW OF THE ABOVE DISCUSSION, IT IS CLEAR THAT T HE APPELLANT HAS GIVEN SUFFICIENT EXPLANATION ABOUT THE IDENTITY, GENUINEN ESS AND THE CAPACITY OF THE PERSON WHO HAS GIVEN THE DEPOSIT. THE AO HAS HELD T HAT THE LOANS WERE NOT EXPLAINED MERELY ON THE GROUND THAT THE APPELLANT D ID NOT PRODUCE THE DEPOSITORS FOR EXAMINATION. CONSIDERING THE FACT TH AT THE APPELLANT HAS GIVEN EVERY INFORMATION RELATED TO THE DEPOSIT NO USEFUL PURPOSE WOULD HAVE BEEN SERVED BY EXAMINING THE DEPOSITORS. SEVEN DEPOSITOR S OUT OF THE 13 ARE HAVING THE SAME CORRESPONDENCE ADDRESS AND THEREFORE, IT I S CLEAR THAT NO ADVERSE FACT WOULD HAVE COME TO LIGHT ON EXAMINATION OF THESE DE POSITORS. THE,OTHER DEPOSITORS ALSO ARE REGULARLY ASSESSED TO TAX AND T HEREFORE, NO PURPOSE WOULD HAVE BEEN SERVED BY FURTHER EXAMINATION OF THESE DE POSITORS. THE AO IS HOWEVER, DIRECTED TO PASS THE INFORMATION TO THE CO NCERNED ASSESSING OFFICER, EXERCISING JURISDICTION OVER THESE DEPOSITORS. I HAVE ALSO CAREFULLY PERUSED THE JUDGEMENTS RELIED BY AO. IT IS NOTED THAT THE FACTS OF THE CASES RELIED BY THE AO ARE DIFFERENT A ND ARE ACCORDINGLY NOT APPLICABLE IN THE PRESENT CASE. IN THE CASE OF N R PORTFOLIO RELIED BY THE AO, THE HONOURABLE DELHI HIGH COURT HAD UPHELD THE DISA LLOWANCE AS THE APPLICANT'S OF SHARE DID NOT RESPOND TO SUMMONS. IN THE PRESENT CASE THE APPELLANT HAS GIVEN ALL INFORMATION AND ALSO, THE N OTICES ISSUED BY THE AO UNDER SECTION 133(6) HAVE BEEN COMPLIED WITH BY THE DEPOSITORS. THE OTHER CASES, SIMILARLY, ARE CLEARLY DISTINGUISHABLE ON FA CTS. IN THE PRESENT CASE, THE APPELLANT HAS DULY DISCHARGED ITS ONUS UNDER SECTIO N 68 OF THE ACT. HONOURABLE GUJARAT HIGH COURT IN THE CASE OF HINDUS TAN INKS AND RESINS LTD, 68 DTR 18, HAS HELD THAT, IN THE CASE OF SHARE APPL ICATION MONEY, THAT THE DEPT WAS FREE TO PROCEED TO REOPEN THE INDIVIDUAL A SSESSMENTS OF SHARED APPLICANT'S CASE IT IS CONSIDERED THAT SOURCE OF DE POSIT AS WELL AS CREDIT WORTHINESS OF THE DEPOSITOR WAS NOT EXPLAINED. THE DECISION OF HONOURABLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PRIVATE LIMITED (SUPRA) IS SQUARELY APPLICABLE ON THE PRESENT FACTS OF THE CAS E. IN VIEW OF THE ABOVE DISCUSSION THE ADDITION OF RS. 1,89,63,000/-, MADE BY THE AO, IS DIRECTED TO BE DELETED. THE GROUNDS OF APPEAL ARE ACCORDINGLY , ALLOWED.' IT IS FURTHER NOTED THAT IN RESPECT OF THIS 9 PARTI ES FOR WHICH THE FINDINGS HAVE BEEN GIVEN BY ME IN A. Y. 2010 - 11, THE AO HAS NOT BROUGHT ON RECORD ANY NEW FACTS. IN FACT, THE ADDITION HAS BEEN MADE BY FOLLOWING TH E FINDINGS GIVEN IN EARLIER ASSESSMENT ORDER. SINCE THE FACTS ARE SIMILAR IN RE SPECT OF THE 9 PARTIES WHICH WERE THERE IN EARLIER ASSESSMENT YEAR ALSO, THE ADDITION UNDER SECTION 68 IN RESPECT OF THOSE CREDITORS IS DIRECTED TO BE DELETED. FURTHER THE FOLLOWING DEPOSITORS ARE THERE WHICH AR E NEW AND THE LOANS HAVE BEEN ACCEPTED IN THIS YEAR: - I) INDIAN AGROTECH LTD. II) WORLDWIDE IMPEX PVT. LTD. III) SIGMA POLYFILMS PVT. LTD. ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 10 - IV) SANWARIA VINTRADE PVT. LTD. IT IS NOTED THAT THE PARTY AT SI. NO 1, 2& 3 ARE GR OUP COMPANIES. TWO OF THEM ARE SITUATED AT THE SAME ADDRESS FROM WHICH THE APP ELLANT COMPANY IS OPERATING AND THE OTHER IS OPERATING FROM A DIFFERENT ADDRESS AT GANDHINAGAR. THE DIRECTORS ARE COMMON. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE APPELLANT HAD GIVEN ALL NECESSARY EVIDENCES WHICH ARE REQUIRED TO PROVE THE CREDITWORTHINESS AND THE GENUINENESS OF THE TRANSACTION. IT HAD GIVEN CONFIR MATION, CONTRA ACCOUNT CONFIRMATION, COPY OF BANK STATEMENT AND COPY OF TH E INCOME TAX RETURN FOR THE YEAR UNDER CONSIDERATION. THEREFORE, IN MY OPINION THE A PPELLANT DULY DISCHARGED THE ONUS UNDER SECTION 68 OF THE ACT. THE ADDITION MADE IN R ESPECT OF THE ABOVE PARTIES IS DIRECTED TO BE DELETED. IN RESPECT OF THE FOURTH COMPANY NAMELY; SANWARIA V INTRADE PRIVATE LIMITED, IT IS NOTED THAT THE COMPANY IS SITUATED AT KOLKATA . THE APPELLANT HAS SUBMITTED THAT IT HAS DULY DISCHARGED THE ONUS AND THE MANAGEMENT OF THE COMPANY, ARE KNOWN TO THE DIRECTORS OF THE APPELLANT COMPANY AS THE DIRECTORS OF THE APPELLANT COMPANY ARE ALSO FROM KOLKATA. IT IS NOTED FROM THE DETAILS AVAILABL E THAT THE NOTICE ISSUED UNDER SECTION 133(6) BY THE AO HAS BEEN DULY COMPLIED WITH AND TH E COMPANY, THE DEPOSITOR, HAS FURNISHED THE INFORMATION AS REQUIRED BY THE AO. FU RTHER THERE IS NO ADVERSE COMMENT BY THE AO REGARDING THE CREDITWORTHINESS, GENUINENE SS AND THE IDENTITY OF THE COMPANY. IN VIEW OF THESE FACTS, I AM OF THE CONSID ERED OPINION THAT THE APPELLANT HAS DULY DISCHARGED ITS ONUS IN RESPECT OF THIS DEPOSIT OR. THE ADDITION MADE UNDER SECTION 68 OF THE ACT IS THEREFORE DIRECTED TO BE DELETED. HOWEVER, THE AO IS DIRECTED TO PASS THE INFORMATIO N TO THE AO'S HAVING JURISDICTION OVER THE DEPOSITOR FOR FURTHER NECESSA RY ACTION AT THEIR END. THE GROUND OF APPEAL IS ACCORDINGLY ALLOWED. THIS LEAVES THE REVENUE AGGRIEVED. 4. WE HAVE HEARD RIVAL SUBMISSIONS. IT HAS COME ON RECORD THAT NINE OUT OF THIRTEEN PARTIES ADVANCING THE RELEVANT UNSECURED L OANS ARE THE SAME AS THEY WERE IN ASSESSMENT YEAR 2010-11. LEARNED COUNSEL REPRESENT ING ASSESSEE FILES BEFORE US A CO-ORDINATE BENCH ORDER IN ITA NO.2288/AHD/2014 DAT ED 14.08.2017 UPHOLDING THE CIT(A)S FINDINGS IN RESPECT OF THE ABOVE SAID NINE PARTIES IN EARLIER ASSESSMENT YEAR. THE REVENUE IS FAIR ENOUGH IN NOT DISPUTING THIS FACTUAL POSITION. WE SOUGHT TO KNOW ABOUT THE NATURE OF EVIDENCE TENDERED AT AS SESSEES BEHEST REGARDING THE REMAINING FOUR PARTIES. WE ARE INFORMED THAT THE V ERY DOCUMENTS ARE FILED QUA THESE ENTITIES AS WELL. WE THEREFORE QUOTE ABOVE C O-ORDINATE BENCH DECISION PLACING RELIANCE ON HONBLE JURISDICTIONAL HIGH COURTS DEC ISION IN RANCHHOD JIVABHAI NAKHAWA TAX APPEAL NO. 50 OF 2011 REPORTED AS 21 TA XMANN.COM 159 AND IN CASE ITA NO. 2348/AHD/15 [ ITO VS. GUJARAT CRAFT INDUSTR IES P. LTD.] A.Y. 2012-13 - 11 - OF CHANAKYA DEVELOPERS 43 TAXMANN.COM 91 THAT IT IS FOR THE ASSESSING OFFICER TO CONDUCT FURTHER ENQUIRY IN SUCH CASES AFTER AN ASSE SSEE FILES CONFIRMATION, BANK STATEMENTS, PAN DETAILS AS WELL AS COPY OF INCOME T AX RETURNS. WE NOTICE THAT THE ASSESSING OFFICER IN THE INSTANT CASE HAS NOT TAKEN INTO ACCOUNT THE FACT THAT THE PRESENT ASSESSEE HAS DISCHARGED ITS INITIAL ONUS. THE ISSUE IS OTHERWISE SQUARELY COVERED AS PER THE ABOVE CO-ORDINATE BENCH DECISION . WE THEREFORE FIND NO REASON TO ACCEPT REVENUES SOLE SUBSTANTIVE GROUND PLEADED IN THE INSTANT APPEAL. 5. THIS REVENUES APPEAL IS THEREFORE DISMISSED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 10 TH DAY OF OCTOBER, 2017.] SD/- SD/- ( MANISH BORAD ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 10/10/2017 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0