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2023 (1) TMI 616 - AT - Income TaxAddition of loan creditors u/s. 68 - undisclosed income of the assessee - assessee has shown unsecured loans HELD THAT:- In the present case, the assessee himself on an affidavit stated that he is a person of no means and did not carry on of such huge business. He on an affidavit has stated that his purchases from M/s. Riddhi Siddhi Bullion Ltd. are bogus and his cheque book is also in the custody of Mr. Dinesh Jani of M/s. Riddhi Siddhi Bullion Ltd. Therefore, the finding of the learned CIT (A) falls flat. The sale consideration received by the assessee is also in cash. There is no address of the parties who purchase the gold and silver from the assessee. Therefore, the whole transaction of purchase and sales shown by the assessee is merely a façade. The learned CIT (A) deleting the addition on account of sales and simultaneously accepting sales made by the assessee as also genuine is absolutely incorrect. When the assessee himself says that he is a person of no means, the loss incurred by the assessee on MCX platform of ₹1,32,28,014/- is also not allowable. The margin paid by the assessee of ₹1.15 crores could not have been deposited by the assessee. Similar is the case with respect to unsecured creditors appearing in the books of assessee cannot be accepted as genuine as sales and purchases both are not genuine. It is a clear-cut case that somebody else is operating on behalf of the assessee by using his bank account and of course, assessee cannot also be stated to be ignorant of the situation. Therefore, the assessee as well as the person who are trading with the assessee such as M/s. Riddhi Siddhi Bullion Ltd. is entering into purchase and sales of gold and silver with some ulterior motive. We set aside the whole appeal filed by the learned Assessing Officer as well as the assessee back to the file of AO to re-investigate the whole aspect of the huge transactions of purchases and sales of Gold and silver and to find out who are the real beneficiaries of these transactions. Prime facie it seems that Riddhi Sidhi Bullion and Hundia Exports have booked huge bogus sales in the name of this assessee. The proper examination of operation of bank account of the assessee by finding out who opened bank account, who operated it , who is beneficiary of the entries in bank account of assessee, who deposited the cash in bank accounts, in whose accounts the money is credited from the same account. This apparently seems to be a case of accommodation entry provider. But deeper and complete investigation leading to beneficiary of the transaction is required. It is also to be inquired whether the bankers have made any report of suspicious transaction or not. Appeals are allowed for statistical purposes.
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