9911796707
TMI Blog2013 (12) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment order of Shri Tarun Goyal for AY 2004-05 dated 24/12/2010 for ready reference as this would give a glimpse of the Modus Operandi followed by the assessee. "4. At the outset, it would be pertinent to mention the modus operandi of the assessee and Sh. Tarun Goyal who was managing the company. (i) Sh. Tarun Goyal created a number of Private Ltd. companies and firms for providing accommodation entries. More than 90 companies were registered from the office premises of Sh.Tarun Goyal i.e. 13/34, W.E.A., Arya Samaj Road, Karol Bagh, New Delhi. The directors of these companies were his employees, who worked in his office as peons, clerks, receptionist etc. All the documents including blank cheques were got signed from these employees. A number of bank accounts were got opened in the names of these companies and his employees. (ii) The general modus operandi was to accept cash from the beneficiary. The cash was deposited in bank account and cheques were issued to the beneficiaries. The assessee in order to disguise his transactions as genuine has been following 'layering' of accounts where in cash was introduced in various bank accounts of the assessee and through mul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of companies, that it collected cash from various companies and issued cheques in lieu thereof, known as "accommodation entry". And that the undersigned and its companies earned a commission on the said accommodation entry. In order to have a peace of mind and to settle the matter for all times to come, the undersigned agreed to the commission income and accordingly, surrendered the commission income on accommodation entry of Rs.40 crores, with a commission income of Rs.10 lacs, which has been accounted for as income in the personal income tax return of the undersigned Mr.Tarun Goyal during the year of the search viz. A.Y. 2009- 10. 2. That a detail of all the cash deposits in various accounts has already been submitted before your honor. 3. That the commission can be taxed either at the time of cash receipt and deposit in the Bank, or at the time of issue of the cheques. The same income can not be taxed twice. 4. It is now requested that commission income be taxed only at the point of cash deposit because only the transactions originated with the cash deposits are the "accommodation entry" transactions. Other transactions are the genuine and bona fide business transactions on w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. We have heard Mr. V.P. Gupta the ld. counsel for the assessee at length. Papers books are filed by the assessee in support of his contentions. 12. The appeals have been categorized into 5 groups. The common ground in all the appeals is that addition can be made only in the case of Tarun Goyal. In 9 appeals, addition made on account of cash deposits in bank account and commission income are disputed. In 80 appeals grounds relate to addition on account of commission. 2 appeals involve grounds disputing addition of cash deposit. One appeal involve grounds for addition made on account of commission and entry given for purchase of flats. Two appeals are of Mr. Tarun Goyal. 13. Submissions of Mr. V.P. Gupta are as follows: "1. That assessment has to be made as a group considering the facts in totality and not separately for each of the entities; 2. That depositing of cash in bank accounts for group entities is part of business of providing accommodation entries and accordingly, no addition can be made for the cash deposited; 3. That commission income is to be added only in the case of Mr. Tarun Goyal and he has already surrendered income on account of commission in his return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the request of the assessee to frame a single assessment in all the cases would be against law. She submitted that each assessee has to necessarily explain each credits in the books of account and in absence of proving the identity, genuineness and creditworthiness of the creditor; the credit in questioned has to be added as income u/s 68 of the Act, in the hands of the assessee in whose books the entry is found. She submitted that the AO has correctly done such an exercise and made additions and the ld. CIT (A) has rightly upheld the same. She countered each and every contention of the assessee. 17. On commission income she submitted that the percentage adopted by the AO was reasonable and based on material, and that the assessment order of Shri Tarun Goyal for the assessment year 2007-08 and 2008-09, where commission @ 0.25%, was not questioned or investigated upon by the AO, cannot form the basis for claiming relief in the earlier assessment years. She submitted that these assessment orders dated 30.3.2013 for the AY 2007-08, 2008-09 and 2009-10 are not speaking order on this issue and that the ACIT Central Circle, Noida, passed these order without application of mind and w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at all the additions have to be made only in the hands of Mr. Tarun Goyal is not correct and hence cannot be accepted. 21. The contention that the totality of the circumstances have to be considered by arriving at the assessable income and that when the finding is that the assessee has indulged in circular and multiple transactions, by layering, what can be taxed is the peak credit and that too at the first point is acceptable and should be the manner of determining the correct income. If each of the layer is brought out tax, then it would be case of levy of income tax, multiple no. of times, on the same amount. Such levy of double or multiple taxes is against law and it would not be the right method of arriving at the correct amount of income. If income is taxed in the hands of Mr. Tarun Goyal, the taxed amount, when transferred to another company should be treated as explained credit. The multiple transfer of this amount should also be treated as explained. But the burden of proof lies on the assessee. 22. Admittedly certain assessment of Shri Tarun Goyal, the kin pin are at various stages and have not reached the Tribunal. Under these circumstances, it would not be possible to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
