ITO 25(3)(5), MUMBAI V. VIKRAM MUKTILAL VORA, MUMBAI

ITA 842/MUM/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0513 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2017
• Appeal Filed By: Department
• Bench Allotted: SMC
• Next Hearing Date: 09-05-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 06-02-2017
• Court: TRIBUNAL
• Department Lawyers: A K KARDA M
• Assessee Lawyers: MANDAV VAIDYA
• Keywords: Search and seizure; Corroborative evidences; Accommodation entries
• Section: 131; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM ITA NO. 842 / MUM/20 1 7 ( ASSESSMENT YEAR : 2007 - 08 ) ITO 25(3)(5), MUMBAI 400 051 VS. M/S. VIKRAM MUKTILAL VORA, 702/703, KSHEM KALYAN BUILDING, SANYAS AHRAM, B.S.ROAD , MUMBAI 400 056 PAN/GIR NO. AAAPV4747P APPELLANT ) .. RESPONDENT ) REVENUE BY SHRI A.K.KARDAM ASSESSEE BY SHRI MANDAV VAIDYA DATE OF HEARING 09 / 05 /201 7 DATE OF PRONOUNCEME NT 23 / 05 /201 7 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) - 37, MUMBAI DATED 17/11/2016 FOR THE A.Y.2007 - 08 IN THE MATTER OF ORDER PASSED U/S.144 R.W.S.147 OF THE IT ACT. 2. IN THIS APPEAL REVENUE IS AGGRIE VED FOR DELETING ADDITION OF RS.40,00,000/ - U/S.68 OF THE IT ACT. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. 4. BRIEF FACTS OF THE CASE ARE THAT THE AO RECEIVED INFORMATION FROM THE DIT(INVESTIGATION), MUMBAI THAT A SEARCH AND SEIZURE OPERA TION WAS CARRIED OUT IN BHANWARLAL JAIN GROUP OF CASES WHER E IN IT WAS FOUND THA T SHRI.BHANWARLAL JAIN ALONG WITH HIS ASSOCIATES HAVE PROVIDED THAT ACCOMMODATION ENTRIES IN FORM OF UNSECURED LOANS/DEPOSITS/PURCHASES ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 2 ENT RIES TO A LARGE NUMBER OF PARTIES TH ROUGH VARIOUS BENAMI CONCERNS CONTROLLED BY THE ASSESSEE . THE ASSESSEE WAS ONE OF THE BENEFICIARY OF ACCOMMODATION ENTRIES OF LOAN CC RS.40,00,000 / - FROM M/S.DAKSH DIAMO ND AND M/S.LAXMI TRADING CO., OP ERATED BV SHRI.BHANWARLAL JAIN AND GROUP. BASED ON THE SA ID INFORMATION THE AO REOPENED T HE ASSESSM ENT BY WAY OF ISSUE OF NOTICE U/S.148 DT.28 - 03 - 20 14. THE A.O. HAS N OT ACCEPTED THE TRANSACTIONS AS GENUINE AND CONSIDERED INCOME OF RS.40, 00,000/ - FROM UNDISCLOSED RECEIPT. FURTHER, THE A.O. HAS DISALLOWED INTERE ST EXPENDI TURE OF RS.1 ,88,273/ - ON ACCOUNT OF BOGUS ACCOMMODATION ENTRY AND ADDED BAC K TO TH E TOTAL INCOME OF THE ASSESSEE. 5. BY THE IMPUGNED ORDER, CIT(A) DELETED THE ADDITION AFTER OBSERVING AS UNDER: - 6. GROU ND NO.2, 3 ARE PERTAINS TO DISA ILOWANCE OF RS 4 O,OO,OOO/ - AND RS.1,88,273/ - . FOR THE SAKE OF CONVENIENCE, ALL THE GROUNDS ARE DISPOSED TOGETHER. 6.1 THE A O RECEIVED AN INFORMATION FROM THE INVESTIGATION WING THAT A SEARCH AND SEIZURE OPERATION WAS CARRIED OUT IN BHANWATLAL JAIN GROUP OF CASES WHE REIN IT WAS FOUND THAT SHRI.BHANWARLAL JAIN ALONG WITH HIS ASSOCIATES HAVE PROVIDED THAT ACCOMMODATION E NTRIES IN FORM OF UNSECURED LOAN S/DEPOSLTS/PURCHASES ENTRIES TO A LARGE NUMBER OF PARTIES THROUGH VARIOUS BENAMI CONCERNS CONTROLLED BY THE APPELLANT. T HE ASSESSEE WAS ONE OF THE BENEFICI AR Y OF ACCOMMODATION ENTRIES OF RS 4 O,OO,OOO/ - FR OM M/S.LAXMI TRADING CO. AND M /S.DAKSH DIAMOND, OPERATED BY SHR L BHANWARLAL JAIN AND GROUP. DURING THE APPELLATE PROCEEDINGS THE APPELLANT HAS STATED THAT APPELLANT HAD T AKEN LOAN OF RS 4 O,OO,OOO/ - FROM THEM. THE APPELLANT TOOK GENUINE LOANS FROM THE TWO PARTIES M/S DA K SH DIAMONDS OF RS 25 LAKHS AND LAXMI TRADING CO RS 15 LAKHS. OUT OF THIS RS 5 LAKHS WAS REPAID TO M/S DAKSH DIAMONDS IN THE YEAR ITSELF AND THE BALANCE WAS CARRIED FORWARD. THE APPELLANT HAS STATED THAT HE HAD MADE PAYMENT THROUGH AC C OUNTS PAYEE CHEQUES AND ALSO PRODUCED SUFFICIENT EVIDENCE BEFORE THE A.O. 'HE A.O. HAS NOT ACCEPTED THE TRANSACTIONS AS GENUINE AND CONSIDERED INCOME OF RS 4 O,OO,OOO/ - FROM UNDIS CLOSED RECEIPT FOR THE A.Y 2007 - 08. ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 3 6.2 FURTHER ST ATED THAT ADDITION U/S 68 OF TH E ACT, THE ASSESSEE MUST SATISFY THREE I MPORTANT CONDITIONS, NAMELY, (I ) THE IDENTITY OF THE CREDITOR; ( II) THE GENUINENESS OF THE TRANSACTION; AND (III ) THE FINANCI AL CAPAC ITY OF THE OF T HE PERSO N GIVING CAS H CR EDIT TO THE ASSESSEE, I.E. THE CREDIT WORTHINESS OF THE CREDITOR, HOWEVER, THE ONUS OF THE ASSESSEE IS LIMITED TO THE EXTENT OF PROVING THE SOURCE FROM WHICH HE RECEIVED THE CASH CREDIT. THE CRE DI T WORTHINESS OF THE C REDITOR HAS TO BE JUDGED VIS - A - VIS THE TRANSACTION WHICH HAD T AKEN PLACE BETWEEN THE ASSESSEE AND THE CREDITOR, AND IT IS NOT THE BURDEN OF THE ASSESSEE TO FIND OUT THE SOURCE OF CREDITWORTHINESS OF THE LENDER TO PROVE THE GENUINE NESS OF THE TRANSACTION. T HIS IS HELD BY THE GAUHATI HIGH COURT IN THE CASE OF CN V SRLT. SANGHAMITRA BHARALI (2014) 361 ITR 481 (GAU) AT PAGE 482.(COPY ENCLOSED ) TH E AFORESAID POINTS WERE ALSO AFFIR MED IN THE PAST BY THE APPEX COUR T IN THE USE OF CIT V. ORISSA CORPORATION P. LTD R EPORTED IN (1986) 159 ITR 78 (SE). IN TL - E CASE OF CIT V. VARINDER RAWLEY (2014) 366 ITR 232 (P & H) THE COURT HELD THAT 'WHERE THE ASSESSEE SHOWS THAT THE ENTRIES REGARDING CREDIT IN A THIRD PARTY'S A CCOUN T WERE IN FACT RECEIVED FROM THE THIRD PARTY AND A RE GENUINE, HE DISCHARGES THE ONUS. IN THAT CASE, THE SUM CANNOT BE CHARGED AS THE ASSESSEE'S INCOME IN THE ABSENCE OF ANY M ATERIAL TO INDICATE THAT IT BELONGS TO ASSESSEE', PARTICULARLY IN A CASE W H ERE NO SUMMONS U/S 131 IS ISSUED AGAINST THE THIRD PARTY. 6.3 THE EXPRESSION 'NATURE AND SOURCE' HAS TO BE UNDERSTOOD TOGETHER AS A REQUIREMENT OF IDENTIFICATION OF THE SOURCE AND T H E NATURE OF THE SOURCE, SO THAT THE GENUINENESS OR OTHERWISE COULD BE INFERRED. TH E HON.BLE SUPREME COURT, IN KALE KHAN MOHD.HANIF VS. CIT, POINTED OUT THAT THE ONUS ON THE ASSESSEE HAS TO BE UNDERSTOOD WITH REFERENCE TO THE FACTS OF EACH CASE AND PROPER INFERENCE DRAWN FROM THE FACTS. I F THE PRIMA FACIE IN FERENCE ON THE FACT IS THAT THE ASSESSEE'S EXPLANATION IS PROBABLE, THE ONUS W ILL SHIFT TO THE REVENUE. AS FAR AS THE CREDITWORTHINESS OR FINANCIAL STRENGTH OF THE CREDITOR/SUBSCRIBER IS CONCERNED, THAT CAN BE PROVED BY PRODUCING THE BANK STATEMENT OF THE CREDITORS/SUBSCRIBERS SHOWING THAT IT HAD SUFFICIENT BALANCE IN ITS ACCOU N TS T O ENABLE IT TO SUBSCRIBE TO THE SHARE CAPITAL. ONCE THESE DOCUMEN T S ARE PR O DUCED, THE ASSESSEE WOULD HAVE SATISFACTORILY DISCHARGED THE ONUS CAST UPON HIM. THEREAFTER, IT IS FOR THE ASSESSING OFFICER TO SCRUTINIZE THE SAME AND IN CASE HE NURTURES ANY DOUB T ABOUT THE VERACITY OF THESE DOCUMENTS, TO PROVE THE MATTER FURTHER. 6.4 ELEMENT OF CREDIT WORTHINESS AND SATISFACTION OF A O THEREAFTER IS SUBJECTIVE AND REQUIRES MORE EFFORTS/INQUIRY ON T E PART R F THE AA TO GIVE A FINDING IN THE ORDER THAT LENDER IS NOT CREDIT WORTHY. THE AA MUST MAKE PROPER ENQUIRY BEFORE MAKING ANY ADDITION. IN KHANDELWAL C O NSTRUCT IO NS V. CN 227 ITR 900 (GAU.), IT HAS BEEN HEL D THAT EMPOWERS THE ASSESSING OFF ICER TO MAKE ENQUIRY. IF HE IS SATISFIED THAT THESE ENTRIES ARE NOT GE N UINE HE H AS EVERY RIGHT TO ADD THESE AS ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 4 INCOME FROM OTHER SO URCES. BUT BEFORE REJEC TING ASSESSEE'S EXPLANATION, A.O. MUS T M AKE PROPER E N QUI R IES A N D IN THE ABSENCE OF PROPER ENQUIRIES, ADDITION CANNOT BE SUSTAINED . 6.5 ' IT IS CLEAR FROM THE ABOVE DISCUSSION TH A T ALL THE TRANSACTIONS WERE THROUGH ACCOUNT PAYE E CHEQUES AND APPELLANT HAS SUBMI TTED SUFFICIENT DETAILS BEFORE THE AO DURING THE ASSESSMENT PROCEEDINGS. THE SOURCE OF RECEIPT THROUGH BANKING CHANNEL CLEARLY ESTABLISH THE GENUIN ENESS OF THE CREDIT WHIC H IS REF LECTED IN THE BOOKS OF ACCOUNTS.' THE DECISION OF THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF DY. CIT VS ROHINI BUILDERS - [256 ITR 360] IS HELD THAT ELL THE LOANS WERE RECEIVED BY THE ASSESSEE BY ACCOUNT PAYEE CHEQUES AND THE R E PA YM ENT OF LOANS HAVE ALSO BEEN MADE BY ACCOUNT PAYEE CHEQUES ALONG WITH INTEREST IN RELATION TO THOSE LOANS AND THAT THE ASSESSING OFFICER HAVING ALLOWED THE INTEREST CLAIMED/PAID BY THE ASSESSEE IN RELATION TO THE CASH CREDITS CANNOT TREAT THE CASH CREDITS AS NOT GENUINE . IT HELD THAT THE ASSESSEE HAD DISCHARGED THE INITIAL ONUS WHICH LAY ON IT IN TERMS OF SECTION 68 BY PROVING THE IDENTITY OF THE CREDITORS BY G IV ING THEIR COMPLETE ADDRESSES, GIR NOS./PAN NOS. AND CO PIES OF ASSESS ME I ORDERS WHER EVER READILY AVAILABLE AN D THAT IT HAS ALSO PROVED THE CAPACITY OF THE CREDITORS B Y SHOWING THAT THE AMOUNTS WERE RECEIVED BY THE ASSESSEE BY ACCOUNT PAYEE CHEQ U ES DRAWN FROM THE BANK ACCOUNTS OF THE CREDITORS. IT HELD THAT THE ASSESSEE IS NOT EXPECTED TO P ROVE THE GENUINENESS OF THE CASH DEPOSITED IN THE BANK ACCOUNTS OF T H OSE CREDITORS BECAUSE UNDER LAW THE ASSESSEE CAN BE ASKED TO PROVE THE SOURCE OF THE C REDI TS IN ITS BOOKS OF ACCOUNTS BUT NOT THE SOURCE OF THE SOURCE. 6.6 FURTHER, IN THE CASE OF NAMICHAND KOTHARI VS CIT - [2 64 ITR 254] [GAU], THE HON'BLE HIGH COURT HAD HELD THAT: ,'A HARMONIOUS CONSTRUCTION OF SECTION 1 06 OF THE EVIDENCE ACT AND SECTION 68 OF THE INCOME - T AX ACT WILL BE THAT THOUGH APAR T FROM ESTABLISHING THE IDENTITY OF THE CREDITOR, THE ASSESSMENT ESTABLI SH THE GENUINENESS OF THE TRANSACTION AS WELL AS THE CREDITWORTHINESS OF HIS CREDITOR, THE B URDEN OF THE ASSESSEE TO PROVE THE GENUINENESS OF THE TRA NSACTIONS AS WELL A S THE CREDITWORTHINESS OF THE CREDITOR MUST REMAIN CONFINED TO THE TR A NS A CTIONS, WHICH H AVE TAKEN PLACE BETWEEN THE ASSESSEE AND THE CREDITOR. WHA T FOLLOWS, AS A COROLLARY, IS THAT IT IS NOT THE BURDE N OF THE ASSESSEE TO PROVE THE G ENUI N ENESS OF THE TRANSACTIONS BETWEEN HIS CREDITOR AND SUB - CREDITOR NOR IS IT THE BURDE N OF THE ASSESSEE TO PRO VE THAT THE SUB - CREDITOR HAD THE CREDITWORTHINESS TO ADVANCE THE CASH CREDIT TO THE CREDITOR FROM WHOM T HE CASH CREDIT HAS BEEN, EVENTUA LLY , RECEIVED BY THE ASSESSEE. IT IS NOT THE BUSINESS OF THE ASSESSEE TO FIND OU T THE SOURCE OF MONEY OF HIS CREDITOR OR OF THE GE NUINENESS OF THE TRA N SACTION, WH ICH TOOK PLACE BETWEEN THE CREDITOR ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 5 AND SUB - CREDITOR AND/OR CREDITWORTHINESS OF TH E SUB - CREDITORS, SINCE, THESE ASPECTS MAY NOT BE WITHIN THE SPECIAL KNOWLEDG E OF TH E ASSESSEE. 6.7. THE ASSESSEE MUST SATISFY THR EE IMPORTANT CONDITIONS, NAMELY (I) THE IDENTITY OF THE CREDITOR (II) THE GENUINENESS OF THE TRANSACTION; AND (III) THE FINANCIAL CAPACITY OF THE PERSON, I.E., THE CREDIT WORTHINESS OF THE CREDITOR. HOWEVER, THE ONUS OF THE ASSESSEE IS LIMITED TO THE EXTEN T OF PROVING THE SOURCE FROM WHICH HE RECEIVED THE CASH CREDIT. THE CREDIT WORTHINESS OF THE CREDITOR HAS TO BE JUDGED VIS - A - VIS THE TRANSACTION WHICH HAD TAKEN PLACE BETWEEN THE ASSESSEE A N D THE CREDITOR, AND IT IS NOT THE BURDEN OF THE ASSESSEE TO FIND OUT THE SOURCE OF CREDITWORTHINES S OF THE LENDER TO PROVE THE GEN UINENESS OF THE TRANSACTION. THIS ISSUE IS DEALT BY THE GAUHA TI HIGH COURT IN THE CASE OF CIT V. SMT. SANGHAMITRA BHARALI (2014) 361 ITR 481 (GAU). THE AFORESAID POINTS WE R E ALSO AFFIRMED IN THE PAST BY THE APPEX COURT IN THE CASE OF CIT V. OR I SSA CORPORATION P. LTD REPORTED IN (1986) 159 ITR 78 (SC). IN THE CASE OF CIT V. VA R INDER RAWLEY (2014) 366 ITR 232 (P & H) THE COURT HELD THAT 'WHERE THE ASSESSEE SHOWS THAT THE ENTRIES REGARDING CREDIT IN A THIRD PARTY'S ACCOUNT WERE IN FACT RECEIVED FROM THE THIRD PARTY AND ARE GENU IN E, - HE DISCHARGES THE ONUS. IN T AT CASE, THE SUM CANNOT BE CHARGED AS THE ASSESSEE'S INC OME IN THE ABSENCE OF ANY MATER IAL TO INDICATE THAT IT BELONGS TO ASSESSEE', PART IC ULARLY IN A CASE 'WHERE NO SU RR OUNDINGS U/ S 131 IS ISSUED AGAINST THE THIRD PARTY. 6.8 FROM THE ASSESSMENT ORDER, IT TRANS P IRES THAT THE AO HAS SOLELY RELIED UPON THE' STATEMENTS OF BHAWARLAL JAIN AND D I D NOT CARRY OUT ANY WORTHWHILE INDEPENDENT INQUIRY IN THE MATTER. HE HAS T OTALLY IGNORED THE DOCUMENTARY EVIDENCES SUBMITTED BY THE APPELLA N T. THE AO IN THE ASSESSMENT ORDER HAS ADMITTED EXISTENCE OF THESE DETAILS. THE AO HAS NOT POINTED OUT ANY DEFECT IN THE ABOVE MENTIONED DOCUMENTARY EVIDENCES SUBMITTED DURING ASSESSMENT PROCEEDINGS. WITHOUT POINTING OUT ANY LACUNA IR THE EVIDENCES SUBMITTED BY THE APPELLANT, THE SOURCES AND THE GENUINENESS CANNOT BE DOUBTED. ONCE EVIDENCES RELATED TO A TRANSAC TION IS SUBMITTED BEFORE THE A.O ., THE ONUS SHIFTS ON HIM TO PROVE THESE AS NON - GENUINE OR ACCOMMODATION. THE A.O. HAS NOT DISCHARGED THE ONUS CASTED ON HIM. IN MY OPINION, MERELY B A SED ON THE STATEMENT OF A THIRD PERSON WITHOUT ANY CORROBORATIVE EVIDENCE WILL NOT MAKE THE TRANSACTIONS' IN QUESTION, AS NON - GENUINE O R BOGUS TRANSACTION. AS SUCH, IN THE ABSENCE OF ANY CONTRARY EVIDENCE PLACED ON RECORD, THE TRANSACT I ON CANNOT BE TREATED AS BOGUS OR PAPER TRANSACTION. 6.9 AS FAR AS THE QUESTION OF VALIDITY OF TILE TRANSACTION, EVEN IF SOME OF THE TRANSACTIONS ENTERED INTO BY THE ABOVE PARTIES ARE FOUND TO BE NOT GENUINE, IT DOES NOT LEAD TO THE CONCLUSION THAT ALL THE TRANSACTI O NS ENTERED INTO BY THESE PARTIES WERE BOGUS OR NON - GENUINE INCLUDING THE ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 6 TRANSACTIONS RELATED TO THE APPELLANT. THERE IS NO EVIDENCE BROUGHT IN THE ASSESS M ENT ORDER TO PROVE THE ABOVE CONCLUSION, BY THE AO. THE REASSESS MEN T PROCEE DINGS WERE WIDE OPEN AND THE AO COULD HAVE CARRIED OUT INDEPENDEN T I N VEST IG A T IO N TO PROVE HIS ARGUMENT REGARDING THE BOGUS OR N ON - GENUIN E TRA N SACTIO N S. NO SUCH INVESTIGA TION HAS BEEN CARRIED OUT BY THE AO. THE OUTCOME OF INVESTIGATION CARRIED OUT IN THE CASE OF BHANWARILAL JAIN, THE CONCLUSIONS DRAWN THEREIN CANNOT BE APPLIED IPSO FACTO TO ALL OTHER CASES WHO HAVE DEALT IN THE TRANSACTIONS DURING THAT PERIOD. SIMPLY RELYI NG ON THE REPORT OF THE INV. WING, MUMBAI AND STATEMENT THE AO CANNOT CONCLUDE THAT ALL TRANSACTIONS ARE BOGUS OR HAVE NO CREDENTIAL VALUE. 6.10 THE. CASE OF THE APPELLANT IS COVERED BY THE DECISION OF ITAT, 'I' BENCH, MUMBAI, IN THE CASE OF SATISH N. DOS HI HUF VS. IT A , WARD 21(2)(4), MUMBAI IN ITA NO - 2329/MUM/2009 AND THE DECISION OF ITAT, .~' BENCH, MUMBAI IN THE CASE OF S HAF BROADCAST PVT. LTD VS. ACIT, CIR - 9(3), MURNBAI IN ITA NO.1819/MUM/2012. BOTH THE CASES R ELATE TO RE - OPENING OF ASSESSMEN T ON THE B ASIS OF STATEMENTS. THE HON'BLE ITAT ON THE ANALYSIS OF THE FINDINGS ME DE IN THE ASSESSMENT ORDERS HAS REACHED TO THE CONCLUSION THAT THE RE - OPENING ITSELF IS BAD IN LAW AND QUASHED THE ORDERS ACCORDING LY. THE RATIO OF THESE JUDGMENT IS APPLICABLE TO THE FACTS OF THE INSTANT CASE. THIS IS CONFIRMED BY THE DELHI BENC H OF THE INCOME TAX APPELLATE TRIBUNAL IN THE CASE OF DCIT V. NIPUN BUILDERS & DEVELOPERS P. LTD. (ITA NO.557/DEL/2010) WHEREIN THE TRIBUNAL DISM ISS E D THE REVENUE APPEAL BY HOLDING THAT THE ASSE SSING OFFICER HAS PRIMARILY RELIED UPON THE REPORT OF THE INVESTIGATION WING WHICH CANNOT CONCLUSIVELY PROVE THAT ASSESSEE'S OWN MONEY WAS INVESTED IN THE FORM OF SHARE APPLICATION MONEY. 6.11 FURTHER, IN THE RECENT JUDGMENT OF S M T.JEFFERALI K RATTONSEY V. DC IT REPORTED IN 5068/MUM/209, THE MU BAI BENCH OF THE INCOME TAX APPELLATE TRIBUNAL HAS ALSO HELD THAT THE MERE STATEMENT OF A PERSON CANNOT BE A DECIDING FACTOR FOR REJECTING THE GENUINENESS OF THE PURCHASE OF SHARES BY THE ASSESSEEE SPECIALLY WHEN AL L OTH ER SUPPORTING EVIDENCES FIL ED BY THE ASSESSEE WERE NEITHER PROVED TO BE FALSE OR UNTRUE. 6 .12 I IN VIEW OF THE FACTS AND CI RCUM STANCES MENTIONED ABOVE, IN MY OPINION, THE APPELLANT HAS SUB MITTED SUFFICIENT EVIDENCES DURI NG THE ASSESSMENT BEFORE THE A .O. THE ASSESSMENT WAS REOPENED ON THE BAS IS OF INVESTIGATION REPORT THAT APPE LLANT HAS TAKEN ACCOMMODATION EN TRY OF LOAN FROM BHAWARLAL JAIN GROUP AND SOLELY RELIED UPO N THE STATEMENTS OF BHAWARLAL JAI N. THE A.O. DID NOT CARRY OUT ANY WORTHWHILE INDEPENDE NT INQUIRY IN THE MATTER. HE HAS TOTALLY IGNORED THE DOCUMENTARY EVIDENCES SUBMITTED BY THE APPELLANT. WITHOUT POINTING OUT ANY LACUNA IN THE EVIDENCES SUBMITTED BY THE APPELLANT, ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 7 T HE SOURCES AND THE GENUINENESS CANNOT BE DOUBTED. TH EREFORE, THE D ECISION O F THE A.O. TREATING THE SAME AS BOGUS OR NON - GENUINE TRANSACTIONS IS NOT IN ORDER AND CANNOT BE JUSTIFIED. THE A O IS ACCORDINGLY DIRECTED TO DELETE THE ADDITION OF RS 4 O,OO,OOO/ - . 7. . GROUND NO .4 RELATES TO DISALLOWANCE OF INTERES T EXPENDITURE OF RS 1, 88,273/- ON ACCOUNT OF BOGUS ACCOMMODATION ENTRY. IT IS ALREADY DISCUSSED IN THE ABOVE GROUNDS THAT THE LOA N TRAN SACTIO N S A R E GE N UI N E. THEREFORE, THE DISALLOWANCE MADE BY THE A.O. ON ACCOUNT OF ACCOMMODATION EXPENSES IS NOT SUSTAINABLE. THE A.O. IS DIRECTE D TO DELETE THE ADDITION OF RS.1,88,273/ - 8. GROUND NO.5 AND 6 ARE GENERAL IN NATURE AND HENCE DO NOT REQUIRE ANY ADJUDICATION, HENCE DISMISSED. 6. I HAVE CONSIDERED RIVAL CONTENTIONS AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW, IT IS CLEAR FROM THE FINDING RECORDED BY CIT(A) THAT ASSESSEE HAS SATISFIED ALL THE THREE CONDITIONS OF CASH CREDIT. AS PER THE FINDING OF CIT(A), ASSESSEE HAS NOT ONLY ESTABLISHED THE IDENTITY OF THE LOAN CREDITORS BUT ALSO GENUINENESS OF THE LOAN TRANSACTION AS WELL AS T HE CREDIT WORTHINESS OF LOAN CREDITORS. THE DETAILED FINDING RECORDED BY CIT(A) HAS NOT BEEN CONTROVERTED BY DEPARTMENT BY BRINGING ANY POSITIVE MATERIAL ON RECORD. ACCORDINGLY, I DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A). 7. IN THE RESULT , APPEAL OF THE REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 23 / 05 /2017 S D/ - ( R.C.SHARMA ) ACCOUNTANT MEMBER MUMBAI ; DATED 23 / 05 /201 7 KARUNA SR. PS ITA NO. 842/MUM/2017 SHRI VIKRAM MUKTILAL VORA 8 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//