A.O. observed that the Appellant – had shown to have borrowed a sum of Rupees One crore from an entity.  The investigation wing of the Income Tax Department initiated action under Section 133(A) of the Income Tax Act at the premises of that entity. Inquiries were made and it was noticed by the Department that the entity was indulging into a network of several bank accounts and conducting hawala entries. The entity admitted that they are in business of providing hawal entries.