Held  that the documents furnished by the assessee showed that the loan of Rs. 13 lakhs was given by B Ltd., to the assessee in the year under consideration, which fact was duly recorded in Schedule 5 “Loans and advances” of the annual report of B Ltd., and this transaction was also recorded by the assessee in the ledger account of B Ltd., in its books. Apart from the assessee, loans and advances were given to other entities by B Ltd. Even in the subsequent year, the assessee had received a loan from B Ltd., and paid interest thereon. The Department’s doubt as to the existence of this entity and its claim that it was a paper entity was disproved. Since the assessee had proved the existence of B Ltd., the findings of the Assessing Officer which were upheld by the Commissioner (Appeals) were not sustainable. Return is accepted without scrutiny . Reassessment on the ground that the  assessee is  beneficiary of accommodation entries from paper company . Re assessment is valid .   (AY.2009-10, 2010-11)