DCIT3(1), Indore V. Shri Manoj Daga, Indore

ITA 931/Ind/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9125 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 04-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N AGRAWAL
• Keywords: Unexplained cash credit; Bogus Share capital; Tax effect; Bogus loan; Penny stocks; Capital Gains
• Section: 143(3); 268A; 147; 68; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.931/IND/2019 ASSESSMENT YEAR:2010-11 DCIT - 3(1) INDORE / VS. SHRI MANOJ DAGA, INDORE ( REVENUE ) ( RE SPONDENT ) P.A. NO. ABZPD1724G REVENUE BY SHRI ASHISH PORWAL, SR. DR RESPONDENT BY SHRI S.N. AGRAWAL, CA DATE OF HEARING: 09.11.2020 DATE OF PRONOUNCEMENT: 08.01.2021 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)(IN SHORT LD. CIT(A)-II, INDORE DATED 21.08.2019 PERTAINING TO ASSESSMENT YEAR 2010 -11. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEA L: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITI ON OF MANOJ DAGA /ITANO.931/IND/2019 2 RS.90,00,000/- ON ACCOUNT OF BOGUS INCURRED LOAN U/ S 68 AND RS.1,18,330/- ON ACCOUNT OF INTEREST PAID THEREON A S BOGUS LOAN ARE RECEIVED FROM M/S. PURVI FINVEST LTD., M/S. EAS T WEST FINVEST LTD. AND M/S. TRIMURTI FINVEST LTD, WHO HAV E PROCURED BOGUS SHARE APPLICATION MONEY/PREMIUM FROM THE PAPE R COMPANIES OF KOLKATA AND THEREAFTER ADVANCES LOAN T O THE ASSESSEE AND ALSO MANY PERSONS/ENTRY/COMPANIES AS P ER ENQUIRIES CARRIED OUT THROUGH INVESTIGATION WING KO LKATA. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITI ONS OF RS.90,00,000/- + INTEREST OF RS.1,18,330/- INSPITE OF SPECIFIC FINDINGS OF THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. 3. THE APPELLANT CRAVES LEAVE TO ADD TO OR DEDUCT F ROM OR OTHERWISE AMEND THE ABOVE GROUNDS OF APPEAL. 2. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE CASE OF THE ASSESSEE WAS REOPENED FOR ASSESSMENT, ON THE GROUND THAT THE ASSESSEE HAD OBTAINED BOGUS SHARE APPLICATION MONEY OF PREMIUM. THEREFORE, THE ASSESSMENT WAS REOPENED, THE ASSESSI NG OFFICER WAS FARMED THE ASSESSMENT U/S 147 R.W.S 143(3) OF THE I NCOME TAX ACT 1961 (HEREINAFTER REFERRED AS THE ACT) WHILE FRAMIN G THE ASSESSMENT, ASSESSING OFFICER NOTICED THAT PERUSING THE DETAILS OF LOAN AND ADVANCES IT WAS FOUND THAT THE ASSESSEE COMPANY HA D TAKEN LOAN AND ADVANCES FROM THREE COMPANIES NAMELY M/S. PURV I FINVEST LTD., M/S. EAST WEST FINVEST LTD. AND M/S. TRIMURTI FINVEST LTD AND HAS CHARGED INTEREST THEREON. THE ASSESSING OFF ICER DID NOT MANOJ DAGA /ITANO.931/IND/2019 3 ACCEPT THE EXPLANATION OF THE ASSESSEE AND MADE ADD ITION OF RS.90,00,000/- IN RESPECT OF THE LOAN RECEIVED FROM THE SAID COMPANIES AND ALSO MADE ADDITION OF THE INTEREST PA ID TO SUCH COMPANIES OF RS. 1,18,330/-. 3. AGGRIEVED AGAINST THIS ASSESSEE PREFERRED AN AP PEAL BEFORE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISSIONS DELETE D THE ADDITION. 4. NOW THE REVENUE IS IN APPEAL BEFORE THIS TRIBUN AL. 5. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE PRESENT APPEAL IS NOT MAINTAINABLE IN THE LIGHT OF THE CIRCULAR OF THE CBDT. LD. COUNSEL FOR THE ASSESSEE REITERATED THE S UBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. THE SUBMISSIONS O F THE ASSESSEE ARE UNDER ; SYNOPSIS IN THE CASE OF DEPARTMENTAL APPEAL: A.1] THE PRESENT APPEAL IS FILED BY THE DEPARTMENT AGAINST THE ORDER OF THE LD CIT (A)-2, INDORE. A.2] THE GROUNDS OF APPEAL TAKEN BY THE DEPARTMENT IN THE PRESENT APPEAL ARE SUMMARIZED HEREUNDER FOR YOUR RE ADY REFERENCE: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS. 90,00,000/- ON ACCOUNT OF BOGUS UNSECURED LOAN U/S 68 AND RS. 1,18,330/- ON ACCOUNT OF INTEREST PAID THEREON AS BOGUS LOAN ARE RECEIVED FROM M/ S PURVI FINVEST LTD., M/ S EAST WEST FINVEST LTD. AND M/ S TRIMURTI FINVEST LTD., WHO HAVE PROCURED BOGUS SHARE APPLICATION MONEY/ PREMIUM FROM THE PAPER COMPA NIES OF KOLKATA AND THEREAFTER ADVANCED LOAN TO THE ASSESSEE AND ALSO MA NY PERSONS/ ENTITY/ MANOJ DAGA /ITANO.931/IND/2019 4 COMPANIES AS PER ENQUIRIES CARRIED OUT THROUGH INVES TIGATION WING KOLKATA. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE CIT(A) WAS JUSTIFIED IN DELETING THE ADDITIONS OF RS. 90,00,000/- + INTEREST OF RS. 1,18,330/- IN SPITE OF SPECIFIC FINDINGS OF THE ASSE SSING OFFICER IN THE ASSESSMENT ORDER. 3. THE APPELLANT CRAVES LEAVE TO ADD TO OR DEDUCT FROM OR OTHERWISE AMEND THE ABOVE GROUNDS OF APPEAL. GROUND NO. 1 & 2 OF THE DEPARTMENTAL APPEAL: 1.1] THE DEPARTMENT IN THESE GROUNDS OF APPEAL HAS CHALL ENGED THE DELETION OF ADDITIONS MADE BY THE ASSESSING OFF ICER OF RS. 90,00,000/- AND RS. 1,18,330/- TO THE TOTAL INCOME ON ACCOUNT OF UNSECURED LOANS RECEIVED AND INTEREST PAID THERE ON RESPECTIVELY THEREBY AGGREGATING TO RS. 91,18,330/-. 1.2.1] AT THE OUTSET, IT IS PERTINENT TO MENTION THAT THE PRESENT APPEAL AS FILED BY THE DEPARTMENT IS NOT MAINTAINAB LE BEFORE THE HON'BLE ITAT, INDORE BENCH IN LIGHT OF THE CIRCULAR NO. 17/2019 DATED 8 TH AUGUST, 2019 AS ISSUED BY THE HON'BLE CBDT WHEREIN MONETARY LIMIT OF TAX EFFECT FOR FILING OF APPEALS BY THE DEPARTMENT BEFORE THE HON 'BLE INCOME TAX APPELLATE TRIBUNAL WAS ENHANCED TO RS. 50,00,000/- FROM THE ERSTWHILE MONETARY LIMIT OF RS. 20,00,000/- 1.2.2] THE HON'BLE CBDT IN PARA 4 OF THE CIRCULAR NO. 3/2018 DATED 11 TH JULY, 2018 DEFINED THE TERM 'TAX EFFECT' AS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSE SSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE I SSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED. THE CIRCULAR ALSO SPECIFICALLY MENTIONED THAT 'TAX EFFECT' SHALL BE TAX INCLUDING APPLICABLE SURCHARGE AND CESS BUT WILL NOT INCLUDE ANY INTERES T THEREON. 1.2.3] THE 'TAX EFFECT' INVOLVED IN THE PRESENT APPEAL AS FILED BY THE DEPARTMENT IS COMPUTED HEREUNDER FOR YOUR READY REF ERENCE: S.NO PARTICULARS AMOUNT [IN RS.] MANOJ DAGA /ITANO.931/IND/2019 5 1.1 AMOU NT OF INCOME ASSESS ED IN TH E ASSESSM ENT ORDER PASSED UNDER 1,14,65,710 SECTI ON 147 R.W.S. 143(3) OF THE ACT 1.2 TAX ON THE AMOUNT OF INCOME ASSESSED INCLUSIVE OF SURCHARGE AND CESS 34,44,024 2.1 AMOUNT OF INCOME AS PER THE INCOME - TAX RETURN FILED IN RESPONSE TO THE 23,47,380 NOTICE ISSUED UNDER SECTION 148 OF THE ACT / AMOUNT OF INCOME ASSESSED IN THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE ACT 2.2 TAX ON THE AMOUNT OF INCOME RETURNED INCLUSIVE OF SURCHARGE AND CESS 6,26,460 3 TAX EFFECT - DIFFERENCE IN THE AMOUNT OF TAX ON INCOME ASSESSED AND 28,17,564 INCOME RETURNED INCLUSIVE OF SURCHARGE AND CESS [1.2 (-) 2.2] 1.2.4] ON PERUSAL OF THE ABOVE TABLE, IT IS QUITE CLEAR TH AT 'TAX EFFECT' INVOLVED IN THE PRESENT APPEAL WAS OF RS. 28,17,564/- WHICH WAS LESS T AN RS. 50,00,000/- AND THEREFORE, THE PRESENT APPEAL AS FILED BY THE DEPARTMENT IS NOT MAINTAINAB LE BEFORE THE HON'BLE !TAT, INDORE BENCH. 1.3.1] HOWEVER, THE HON'BLE CBDT IN PARA 3 OF ITS CIRCU LAR NO. 23 OF 2019 DATED 6 TH SEPTEMBER, 2019 STATED THAT APPEAL MAY BE FILED ON MERITS AS AN EXCEPTION TO THE CIRCULAR ISSUED BY THE HON'BLE CBDT SPECIFYING MONETARY LIMITS FOR F ILING OF DEPARTMENTAL APPEALS IN CASES WHERE BOARD, HY WAY OF SPECIAL ORDER, DIRECTS FILING OF APPEAL ON MERIT IN CAS ES INVOLVED IN ORGANIZED TAX EVASION ACTIVITY. 1.3.2] THE HON'HLE CBDT VIDE ITS NOTIFICATION F. NO. 279/MISC./M-93/2018-ITJ (PT.) DATED 16 TH SEPTEMBER, 2019 ISSUED A SPECIAL ORDER EXEMPTING CASES INVOLVING BOGUS LONG TERM CAPITAL GAINS (LTCG)/ SHORT TERM CAPITAL LOSS (STCL) THROUGH PENNY STOCKS FROM MONETARY LIMITS SPECIFIED IN ANY CIRCULAR ISSUED UNDER SECTION 268A OF THE INCOME-TAX ACT, 1961. 1.3.3] IN THE FACTS OF THE PRESENT CASE, THE RESPONDENT ASSES SEE MANOJ DAGA /ITANO.931/IND/2019 6 RECEIVED UNSECURED LOAN OF RS. 90,00,000/- AND PAID INTEREST THEREON OF RS. 1,18,330/- WHICH WAS DULY SUBSTANTIA TED WITH AMPLE SUPPORTING DOCUMENTARY EVIDENCES. THE CASE OF THE RESPONDENT ASSESSEE WAS NOT A CASE INVOLVING BOGUS LO NG TERM CAPITAL GAINS (LTCG)/ SHORT TERM CAPITAL LOSS (STCL) THR OUGH PENNY STOCKS. 1.4] IN VIEW OF THE ABOVE, THE PRESENT APPEAL AS FILED BY THE DEPARTMENT IS NOT MAINTAINABLE DUE TO LOW TAX EFFECT. 6. LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBM ISSIONS AND SUBMITTED THAT THE ISSUE FALL IN THE EXCEPTION CLAUSE OF THE CIRCULAR ISSUED BY CBDT. 7. WE HAVE HEARD RIVAL SUBMISSIONS AND MATERIALS PL ACED BEFORE US AND GONE THROUGH THE ORDERS OF LOWER AUTHORITIES . THE CONTENTIONS OF THE ASSESSEE ARE THAT CASE DOES NOT FALL IN THE EXCEPTION CLAUSE. HE BROUGHT TO OUR NOTICE, CIRCUL AR NO.23 OF 2019 DATED 06.09.2019 AND OFFICE MEMORANDUM DATED 16.09. 2019, FOR THE SAKE OF CLARITY BOTH THE CIRCULAR AND OFFICE ME MORANDUM ARE REPRODUCED AS UNDER; CIRCULAR NO. 23 OF 2019 F, NO . 279/MISC./M-93/2018-ITJ (PT.) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD DIRECT TAXES JUDICIAL SECTION NEW DELHI, 6TH SEPTEMBER 2019 MANOJ DAGA /ITANO.931/IND/2019 7 SUBJECT: -EXCEPTION TO MONETARY LIMITS FOR FILING APPEALS SPECIFIED IN ANY CIRCULAR ISSUED UNDER SECTION 268A OF THE I NCOME-TAX ACT, 1961-REG REFERENCE IS INVITED TO THE CIRCULARS ISSUED FROM T IME TO TIME BY CENTRAL BOARD OF DIRECT TAXES (THE BOARD) UNDER SECTION 268 A OF THE INCOME-TAX ACT,1961 (THE ACT), FOR LAYING DOWN MONETARY LIMITS AND OTHER CONDITIONS FOR FILING OF DEPARTMENTAL APPEALS BEFORE INCOME TA X APPELLATE TRIBUNAL (ITAT), HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME COURT. 2. SEVERAL REFERENCES HAVE BEEN RECEIVED BY THE BOA RD THAT IN LARGE NUMBER OF CASES WHERE ORGANISED TAX-EVASION SCAM IS NOTICED THROUGH BOGUS LONG-TERM CAPITAL GAIN (LTCG)/SHORT TERM CAPI TAL LOSS (STCL) ON PENNY STOCKS AND DEPARTMENT IS UNABLE TO PURSUE THE CASES IN HIGHER JUDICIAL FORA ON ACCOUNT OF ENHANCED MONETARY LIMIT S. IT HAS BEEN REPORTED THAT IN LARGE NUMBER OF CASES, ITA TS AND HIGH COUR T HAVE RECOGNIZED THE UNIQUE MODUS OPERANDI INVOLVED IN SUCH SCAM AND HAV E PASSED JUDGEMENTS IN FAVOUR OF THE REVENUE. HOWEVER, IN CA SES WHERE SOME APPELLATE FORA HAVE NOT GIVEN DUE CONSIDERATION TO POSITION OF LAW OR FACTS INVESTIGATED BY THE DEPARTMENT, THERE IS NO REMEDY AVAILABLE WITH THE DEPARTMENT FOR FILING FURTHER APPEAL IN VIEW OF THE PRESCRIBED MONETARY LIMITS. 3. IN THIS CONTEXT, BOARD HAS DECIDED THAT NOTWITHS TANDING ANYTHING CONTAINED IN ANY CIRCULAR ISSUED U/S 268A SPECIFYIN G MONETARY LIMITS FOR FILING OF DEPARTMENTAL APPEALS BEFORE INCOME TAX AP PELLATE TRIBUNAL (IT AT), HIGH COURTS AND SLPS/APPEALS BEFORE SUPREME CO URT, APPEALS MAY BE FILED ON MERITS AS AN EXCEPTION TO SAID CIRCULAR , WHERE BOARD, BY WAY OF SPECIAL ORDER DIRECT FILING OF APPEAL ON MERIT IN C ASES INVOLVED IN ORGANISED TAX EVASION ACTIVITY. 4. HINDI VERSION FOLLOWS. SD/- (NEETIKA BANSAL) DIRECTOR (ITJ) CBDT, NEW DELHI COPY TO: 1. CHAIRMAN, MEMBERS AND ALL OTHER OFFICERS IN CBDT OF THE RANK OF UNDER SECRETARY AND ABOVE. 2. ALL CHIEF COMMISSIONERS OF INCOME TAX AND ALL DI RECTORS GENERAL OF INCOME TAX. MANOJ DAGA /ITANO.931/IND/2019 8 3. ADG (PR, P&P), MAYUR BHAWAN, NEW DELHI FOR PRINT ING IN THE QUARTERLY TAX BULLETIN AND FOR CIRCULATION AS PER USUAL MAILING L IST. 4. THE COMPTROLLER AND AUDITOR GENERAL OF INDIA. 5. ADG (VIGILANCE), MAYUR BHAWAN, NEW DELHI 6. JOINT SECRETARY & LEGAL ADVISOR, MINISTRY OF LAW & JUSTICE, NEW DELHI 7. ALL DIRECTORATES OF INCOME-TAX, NEW DELHI AND PR . DGIT(NADT), NAGPUR 8. ITCC (3 COPIES). 9. ADG (SYSTEM)-4, FOR UPLOADING ON THE DEPARTMENT S WEBSITE. 10. DATA BASE CELL FOR UPLOADING ON IRSOFFICERSONL INE.GOV.IN. 11. [e-mail] FOR UPLOADING ON NJRS 12. HINDI CELL FOR TRANSLATION . 13. GUARD FILE F. NO. 279/MISC./M-93/2018-ITJ(PT.) GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NEW DELHI, DATED: 16 TH SEPTEMBER, 2019 OFFICE MEMORANDUM SUBJECT: -SPECIAL ORDER OF BOARD EXEMPTING CASES IN VOLVING BOGUS LONG TERM CAPITAL GAINS(LTCG) /SHORT TERM CAPITAL LOSS (STCL) THROUGH PENNY STOCKS FROM MONETARY LIMITS SP ECIFIED IN ANY CIRCULAR ISSUED UNDER SECTION 268A OF THE INCOME-TA X ACT, 1961-REG THE UNDERSIGNED IS DIRECTED TO REFER TO CIRCULAR NO. 23 OF 2019 DATED 6 TH SEPTEMBER, 2019 AND TO SAY THAT BY VIRTUE OF POWERS OF THE CENTRAL BOARD OF DIRECT TAXES U/S 268A OF INCOME-TAX ACT,19 61, THE MONETARY LIMITS FIXED FOR FILING APPEALS BEFORE ITAT/HC AND SLPS /APPEALS BEFORE MANOJ DAGA /ITANO.931/IND/2019 9 SUPREME COURT SHALL NOT APPLY IN CASE OF ASSESSES C LAIMING BOGUS LTCG/STCL THROUGH PENNY STOCKS AND APPEALS/SLPS IN SUCH CASES SHALL BE FILED ON MERITS. SD/- (ABH HEK GAUTAM) DCIT(OSD)(ITJ-1), CBDT, NEW DELHI. COPY TO: 1. THE CHAIRMAN, MEMBERS AND ALL OTHER OFFICERS IN CBDT OF THE RANK OF UNDER SECRETARY AND ABOVE. 2. ALL PRINCIPAL CHIEF COMMISSIONERS OF INCOME-TAX AND DIRECTOR GENERALS OF INCOME-TAX. 3. ADG (PR, PP& OL), MAYUR BHAWAN, NEW DELHI FOR PR INTING IN THE QUARTERLY TAX BULLETIN AND FOR CIRCULATION AS PER U SUAL MAILING LIST. 4. THE COMPTROLLER AND AUDITOR GENERAL OF INDIA. 5. ADG (VIGILANCE), MAYUR BHAWAN, NEW DELHI. 6. THE JOINT SECRETARY & LEGAL ADVISOR, MINISTRY OF LAW & JUSTICE, NEW DELHI. 7. ALL DIRECTORATES OF INCOME-TAX, NEW DELHI AND DG IT (NADT), NAGPUR. 8. ITCC (3 COPIES). 9. THE ADG (SYSTEM)-4, FOR UPLOADING ON THE DEPARTM ENTS WEBSITE. 10. DATA BASE CELL FOR UPLOADING ON IRSOFFICERSONLI NE.GOV.IN. 11. [e-mail] FOR UPLOADING ON NJRS. 12. GUARD FILE. DCIT(OSD)(ITJ-1), 8. WE FIND THAT LD. A.O HAS MADE ADDITION IN RESPEC T OF LOAN AND ADVANCES AND INTEREST THEREON BY OBSERVING AS UNDER ; 5. WHILE PERUSING THE DETA ILS OF 'LOAN AND ADVANCES' IT WAS FOUND THAT THE ASSESSEE COMPANY HAS TAKEN 'LOAN AND ADVANCES' FROM THREE COMPANIES NAMELY M/S EAST WEST FINVEST I NDIA LTD, M/S PURVI FINVEST LIMITED & M/S TRIMURTHI FINVEST LIMITED AND HAS CHARGED INTEREST THEREON. HENCE, DETAILS OF THE SAID 'LOANS AND ADVANCES' VIS-A-VIS 'UNSECURED LOANS' WERE CALLED FOR AND IT WAS FOUND THAT THE ASSESSEE COMPANY HAD PAID INTEREST ON THE UNSECURED LOANS @9 TO 12% . 5.1 THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE H AS APPEARED AND SUBMITTED THE EXPLANATION AND SUBMISSION VIDE LETTE R DATED 22.12.2017 AND 27.12.2017. THE DETAILS AND THE EXPLANATIONS SU BMITTED BY THE ASSESSEE ARE GIVEN DUE CONSIDERATION AND THEY ARE F OUND TO BE NOT MANOJ DAGA /ITANO.931/IND/2019 10 ACCEPTABLE. THE ASSESSEE HAS TAKEN 'LOAN AND ADVANC ES' FROM THREE COMPANIES NAMELY M/S PURVI FINVEST LIMITED, EAST WEST FINVEST LIMITED AND TRIMURTI FINVEST LIMITED OF RS. 25,00,000/- , RS. 25,00,000/- AND RS. 40,00,000/- RESPECTIVELY DURING THE YEAR 2009-10. THE INFORMATI ON HAS BEEN RECEIVED FROM DCIT1(1) BILASPUR STATING THAT T HE COMPANIES M/S EAST WEST FINVEST INDIA LTD, M/S PURVI FINVEST LIMI TED & M/S TRIMURTHI FINVEST LIMITED THAT DURING THE ASSESSMENT PROCEEDI NGS FOR THE A.Y. 2014-15 IN THE CASE OF ABOVE MENTIONED COMPANIES IT HAS COME TO NOTICE THAT THE COMPANY NAMELY M/S PURVI FINVEST LIMITED, EAST WEST FINVEST LIMITED AND TRIMURTI FINVEST LIMITED HAS PROCURED B OGUS SHARE APPLICATION MONEY/PREMIUM FROM PAPER COMPANIES OF K OLKATA AND THEREAFTER ADVANCE LOAN TO VARIOUS PERSONS/ENTITY/C OMPANIES. THE DIRECTORS OF THESE CONCERNS WERE FOUND TO BE DUMMY DIRECTORS TO THE ENTRY OPERATORS. THE LENDER COMPANY HAS GIVEN MEREL Y AN ENTRY AS UNSECURED LOAN TO ASSESSEE AND ASSESSEE HAS USED IT S UNACCOUNTED MONEY IS SHADOW OF THESE COMPANIES AS CREDITORS. TH E ASSESSEE SHRI MANOJ DAGA IS ALSO ONE OF THE BENEFICIARY WHO HAS O BTAINED ENTRY AS UNSECURED LOAN FROM M/S PURVI FINVEST LIMITED, EAST WEST FINVEST LIMITED AND TRIMURTI FINVEST LIMITED OF RS. 25,00,0 00/-, RS. 25,00,000/- AND RS. 40,00,000/- RESPECTIVELY AND THE ASSESSEE HAS INTRODUCED HIS UNACCOUNTED MONEY IN SHADOW OF THESE COMPANIES. HEN CE, THE AMOUNT OF RS. 90,00,000/- IS ADDED AS UNEXPLAINED CREDITS U/S 68 OF THE LT. ACT. HENCE THE AMOUNT OF INTEREST PAID BY THE ASSESSEE F OR THOSE LOANS TAKEN BY ABOVE MENTION COMPANIES OF RS. 34,521/-, RS.34,5 21/- AND RS.49,288/RESPECTIVELY IS DISALLOWED AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE FOR THE A.Y. UNDER REFERENCE. PENAL TY IS INITIATED U/S 271 (1)(C) FOR CONCEALMENT OF INCOME AND FURNISHING INA CCURATE PARTICULARS OF INCOME. 9. HENCE, FROM THE ASSESSMENT ORDER IT IS EVIDENT T HAT IT IS NOT THE CASE WHERE CLAIM OF BOGUS LONG TERM CAPITAL GAIN OR SHORT TERM CAPITAL GAIN IS MADE. IT COULD BE A CASE OF SUSPICI OUS LOAN TRANSACTION. SINCE THE SUSPICIOUS LOAN TRANSACTION IS NOT COVERED IN THE EXCEPTIONS CLAUSE OF CBDT CIRCULAR. WE FIND MER IT IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. HEN CE, WE HOLD THAT MANOJ DAGA /ITANO.931/IND/2019 11 THE PRESENT APPEAL IS NOT MAINTAINABLE IN VIEW OF T HE MONETARY LIMIT PRESCRIBED BY CBDT CIRCULAR NO.17 OF 2019 DATED 8 TH AUGUST 2019. THE APPEAL IN ITANO.931/IND/2019 IS DISMISSED AS NO T MAINTAINABLE. 10. IN RESULT, APPEAL FILED BY THE ASSESSEE IS DISM ISSED AS NOT MAINTAINABLE. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 08 .0 1.2021. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 08/01/2021 PATEL/PS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE