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2022 (5) TMI 1054 - AT - Income TaxAddition u/s 68 - unexplained cash credit - whether Provisions of Section 68 of the Act can be applied or not in deposits in the bank statements? - Identifying the real beneficiary of accommodation entry - HELD THAT:- We find that the issue is squarely covered against the assessee by the decision of Hon'ble Bombay High Court in case of shri Arunkumar J. Muchhala [2017 (8) TMI 1137 - BOMBAY HIGH COURT] wherein Hon'ble Bombay High Court has held that where huge amounts credited to the bank account of the assessee, source of which is not explained, the provision of section 68 of the Act are applicable. While deciding so, Honourable High court also considered decision relied up on in CIT vs. Bhaichand H. Gandhi [1982 (2) TMI 28 - BOMBAY HIGH COURT] in paragraph no. 7. In view of this, we dismiss additional ground raised. Addition u/s 68 - Now before us assessee has submitted the copy of the complaint filed before the metropolitan Magistrate and also complaint before Commissioner of Police on 13th February, 2017. Assessee filed same before the learned CIT(A) on 1/2/2017, however, date of the order of the learned CIT(A) is 16th November, 2016 where the date of the order mentioned in form no. 36 is 16th November, 2018, apparently, there may be some typographical error on the part of the learned CIT(A) in mentioning those dates. In this type of transactions, multiple economic offence laws are triggered. In some of such laws Ld. Assessing Officer himself is authority to initiate/or inform to respective authorities. and in some of the case those may be referred to the respective authorities. It is the bounden duty of the authorities to take the issues to its logical conclusion. We are surprised that bankers were oblivion to the facts about suspicious transactions carried out in the bank account. On examination of bank account, Ld. DDIT, LD AO and LD CIT(A) also remained passive. Therefore, we are of the opinion that such transactions need to be probed further to curb such a malpractice. We set aside all these appeals back to the file of the learned Assessing Officer with following directions. i. To obtain information of the above bank account such as the ownership of CD account wherefrom the cheques were received, signature of persons who withdrew cash of Rs. 1 lakhs on more than 100 occasions, where and how cheque books were issued, who are the owners of the bank accounts where the sums are diverted, These evidences may be obtained by the learned Assessing Officer by use of powers under section 133(6) as well as under section 131 of the Act. The Assessing Officer may also use any other provisions of the law which he is empowered to. ii. to obtain the complete details of Yash Impex, whose permanent account number is available in the statement recorded by the Bank Manager. Apparently, Yash Impex is the real beneficiary of the flow of the funds from this bank account. It may be possible that M/s. Yash Impex may also be carrying similar transactions and the real beneficiary may be other persons. iii. The Assessing Officer may also invoke the provisions of section 147 of the Act in all those persons who entered in to these transactions, after issuing them notices, keeping in mind provisions of section 153(6) of the Act. iv. If the account is found to be operated by the assessee, the assessee is also duty bound to state whether he is an accommodation entry provider or owner of the money. No doubt, onus lies on the assessee. If the assessee gives names of the beneficiary as mentioned in the bank account, the addition deserves to be made in the hands of the beneficiary. v. If, on examination it is found that it is a case of money laundering, the Assessing Officer is further directed to take necessary action by reporting appropriately. vi. The Assessing Officer is further required to issue notice to all the concerned persons including the assessee prior to taking any action against those persons. Further, the Assessing Officer is directed to give proper opportunity of hearing to the assessee as well as other persons before deciding the issue.
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