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2023 (3) TMI 96 - AT - Income TaxAssessment u/s 153A - Addition u/s 68 - Assessee company is a non-banking Finance Company and engaged in the business of investment and received accommodation entries - HELD THAT:- AO though examined the reply of the Assessee and claim to the effect that the Assessee has not received any accommodation entry, however, came to the conclusion that from the information gathered by the department that the Assessee company is engaged in providing accommodation entries in lieu of cash to various entities including Sajan Kumar Jain group of companies and family members of Shri Sajan Kumar. Moreover, the same has been admitted by Shri Pradeep Kumar Jindal in his statement recorded u/s. 132(4) of the Act. It is also pertinent to mention here that the Assessee company is controlled, managed and run by Shri Pradeep Kumar Jindal. In view of this, it is established that these are accommodation entries and have been routed through the front company, i.e., the Assessee company. It is pertinent to mention that this share capital investment has been made in the hands of the Assessee company which is a front company as explained above, therefore, the entire amount in the form of share premium and share capital is added in the hands of the Assessee company. Entries on the basis of which addition have been made, already subjected to tax in the case of Shri Pradeep Kumar Jindal, who by letter dated 18.01.2023 accepted the fact that he has already accepted the commission income on the accommodation entries given by M/s. Pawansut Holdings Ltd. as part of his taxable income in respect of assessment years 2010-11 and 2015-16 and his personal appeals for the said assessment years for A.Y. 2010-11 and for A.Y. 2015-16 are pending in ITAT for its direction on multiple additions, rate and calculation of commission and its taxability as per law. By considering the order passed by the Hon’ble Coordinate bench and the confirmatory letters issued by Shri Pradeep Kumar Jindal, we are inclined to dismiss the appeals of the Revenue department.
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