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This appeal by assessee-company has been directed against the order of the Ld. CIT(A)-XII, New Delhi, dated 20th January, 2014 for the A.Y. 2007-2008. Earlier, this appeal was dismissed for default. However, the miscellaneous application ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.

filed by assessee-company was allowed. Accordingly, the earlier order was recalled and appeal was re-fixed for hearing on merits.

ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.

Double Star Builders Pvt. Ltd., It was also submitted that there is no evidence, whatsoever, has been brought on record and made available to assessee-company that any cash have been given by assessee-company in lieu of taking any accommodation entry. It was submitted that assessee-company has returned the amount in question of Rs.3.18 crores to the aforesaid party in A.Y. 2009-2010 and there is NIL balance on account of this party. The assessee-company produced sufficient evidence before A.O. to prove the genuineness of the transaction in the matter. The department has failed to prove through any evidence that the cash actually moved out of/emanated from the coffers of the assessee-company which subsequently found its way back to the assessee-company in the form of accommodation entry. The proposed addition is unsustainable. The assessee-company received the amount in question through banking channel which are reflected in the books of account of the assessee-company. The assessee- company proved the identity of the lender, its creditworthiness ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.

5. The assessee-company challenged the assessment order passed under section 153C of the I.T. Act as illegal and bad in law before the Ld. CIT(A). The assessee-company also ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.

challenged the addition of Rs.3.18 crores against the loss of Rs.24,64,664 declared by assessee-company. The assessee- company also challenged the disallowance of loss of Rs.24,16,422 of current year and brought forward losses of earlier years to be carried forward before Ld. CIT(A). The assessee-company reiterated the same submissions as made before A.O. and written submissions of assessee-company are reproduced in the impugned order in which the assessee- company briefly explained that assessee-company proved identity of the investor, his creditworthiness and genuineness of the transaction. Therefore, no addition can be made. The department cannot ask assessee to prove source of the source. The assessee-company relied upon the decision of the Hon'ble Supreme Court in the case of CIT vs. Orissa Corporation (P) Ltd., (1986) 159 ITR 78 (SC), decision of Gujarat High Court in the case of DCIT vs. Rohini Builders (2002) 256 ITR 360 (Guj.), decision of Guwahati High Court in the case of CIT vs. Nemi Chand Kothari (2003) 264 ITR 254 (Gau.) and decision of Hon'ble Delhi High Court in the case of Mod Creations Pvt. Ltd., ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.

The JC group was a partner in the Mumbai Special Economic Zone and Navi Mumbai Special ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.
Economic Zone projects of India. This group had float- ed various companies to purchase large chunks of land in the vicinity of the special economic zones. The group's real estate operations were being handled by V, G and D. D was also the managing land transactions outside the Mumbai Special Economic Zone. The assessee was one of the companies floated by this group to purchase land outside the Mumbai Special Economic Zone. During search of D's residence, certain incriminating documents were seized and his statement was recorded. A show cause notice was issued to the assessee informing it that Rs. 38.45 crores, which was a sum reflected from the documents seized from D's residence and Rs. 4 crores in addition, which was evidenced by loose documents in the form of cash receipts, were found during search and seizure proceedings. The assessee was called upon to explain and show cause why these amounts should not be treated as unexplained expenditure ITA.No.2159/Del./2014 M/s. Nova Iron & Steel Ltd., New Delhi.