Ankit Agarwal Vs ITO (ITAT Jodhpur Bench)
₹40-Lakh Loan Came by Bank & Went Back in the Same Year—Jain Brothers’ General Modus Operandi Cannot Manufacture an Addition u/s 68
The Loan That Attracted Investigation
The Assessee, proprietor of M/s Churu Overseas & engaged in trading PVC resin, filed his return declaring total income of ₹3,80,740.
The AO subsequently received information from the Investigation Wing that the Assessee had allegedly obtained an accommodation entry of ₹40 lakh through concerns controlled by Shri Anand Kumar Jain & Shri Naresh Kumar Jain, collectively described as the “Jain Brothers.”
The information originated from a search u/s 132 conducted on 17.12.2015. The Jain Brothers were alleged to be operating paper companies through dummy directors & employees for providing accommodation entries through cheque, RTGS, NEFT or demand drafts against cash.
After obtaining approval from the Additional CIT, notice u/s 148 was issued on 10.01.2018. The reassessment was completed u/s 143(3) r.w.s. 147 by adding ₹40 lakh u/s 68.
Receipt & Repayment Were Both Recorded
The disputed unsecured loan was received from M/s Ambarnuj Finance & Investment Pvt. Ltd. through banking channels. It was disclosed in the Assessee’s tax audit report in Form 3CB. Significantly, the assessment order itself recorded both the receipt of ₹40 lakh & its repayment during the same financial year.
