DCIT Vs Brightstar Syntex Private Limited (ITAT Mumbai)
SECTION 68: AN INVESTIGATION REPORT MAY RAISE SUSPICION, BUT CANNOT REPAY THE AO’S DUTY TO PROVE THE LOAN BOGUS
₹4.84 crore loans linked to Praveen Kumar Jain Group
The assessments were reopened on the basis of information received from the Investigation Wing following search proceedings in the case of Shri Praveen Kumar Jain & associated entities.
According to the Investigation Wing, entities controlled or operated by the group were engaged in providing accommodation entries. The assessee was identified as one of the beneficiaries of unsecured loan entries.
For AY 2012-13, the assessee received aggregate loans of ₹3,93,50,000 from eight companies, including Alka Diamond Industries Ltd., Nakshatra Business Pvt. Ltd., Olive Overseas Pvt. Ltd., Duke Business Pvt. Ltd., Atharv Business Pvt. Ltd., Kush Hindustan Entertainment Ltd., Sumukh Commercial Pvt. Ltd. & Triangular Infocom Ltd.
The assessee also paid interest of ₹19,25,186 on those borrowings.
For AY 2013-14, the AO similarly treated unsecured loans of ₹90 lakh as unexplained.
AO treats group allegation as transaction proof
The AO relied principally upon the investigation findings, material contained in a pen drive seized during the search, alleged broker ledgers & the association of the lender companies with the Praveen Kumar Jain Group.
