TMI Blog2015 (3) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT under Section 144A, we have no hesitation to hold that the addition under Section 68 cannot be made in the case of the conduit companies. Therefore, we delete the addition made under Section 68 in the case of all the nine companies, which are admittedly conduit companies of Shri S.K. Gupta. See M/s Omni Farms Pvt. Ltd. & Anr. vs. DCIT [2015 (1) TMI 1119 - ITAT DELHI] - Decided in favour of assessee. - I.T.A.No.4647/Del/2013 - - - Dated:- 20-3-2015 - Shri H.S. Sidhu And Shri B.C. Meena JJ. For the Appellant : Sh. Gautam Jain, CA Piyush Kr. Kamal, Adv. For the Respondent : S h. Gautam Dudeja, Sr. DR. ORDER Per H.S. Sidhu : JM Assessee has filed the present appeal against the impugned order dated 20/3/2013 passed by the Ld. Commissioner of Income Tax (Appeals)-XXXIII, New Delhi on the following grounds:- 1. That the order or the ld. CIT (A) dated 20.03.2013 is bad in law and on facts. 2(a). That on the facts and in the circumstances of the case the ld. CIT(A) is not justified in confirming the addition of ₹ 2,48,65,600/- made u/s 68 of the Income-tax Act, 1961 representing deposits in appellant's bank accounts received from v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections of the Addl. CIT u/s directing the Ld. AO not to make addition in the hands of conduit companies including appellant company. 4. That the CIT(A) has erred in issuing enhancement notice u/s. 251(2) and directing the AO to enhance income by ₹ 3,49,450/- without appreciating the appellant s reply dated 14.3.2013 filed in response to the enhancement notice. 5. That the Ld. CIT(A) has erred in not allowing relief on the following issues raised as additional ground having effect of income being taxed twice. a) ₹ 2,41,57,800/- twice added in the hands of the appellant as well as in the hands of the various other conduit companies from whom the amounts were received through account payee cheques details which are given in the paper book. b) Cash deposited into bank account out of the cash available with the company. 6. That the appellant craves leave to add, alter, amend, substitute, delete and modify any or all the grounds of appeal, which are without prejudice to one another, before or at the time of hearing of the appeal. 2. The facts narrated by the Revenue authorities are not disputed by both the parties, therefore, need not to be repeated here f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 68234143 21279381 9 Chanderprabhu Finance Securities Limited. 3850781 1200898 10 Cubic Commercial Resources Limited 43840592 13672050 11 Dhamaka Trading Construction Pvt. Ltd. 27946937 8715483 12 Falcon Freight (P) Ltd. 4106374 1280607 13 Giriasho Company Pvt. Ltd. 15623553 4872334 14 KSA Chits (P) Ltd. 24865600 7754543 15 Namrata Marketing Pvt. Ltd. 108251085 33758994 16 Omini Farms Pvt. Ltd. 21118716 6586046 17 Optimum Credits Limited 46579934 14526337 18 Passion Chits Co. Pvt. Ltd. 4009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l no. 25; M/s Vishrut Marketing Pvt. Ltd. vs. DCIT who filed ITA No. 3485/Del/2013 is at Serial No. 26 and M/s Namrata Marketing Pvt. Ltd. vs. DCIT who filed ITA No. 3621/Del/2013 is at Serial No. 15. We find that the issues involved in the aforesaid appeals are similar to that of the issue involved in the present appeal and same has been decided in favor of the assessee and the additions were deleted. For the sake of convenience, relevant paragraphs of the ITAT s order dated 28.1.2015 passed by E Bench, New Delhi in the case of M/s Omni Farms Pvt. Ltd. Anr. vs. DCIT in ITA No. 3477/Del/2013 (A.Y. 2008-09) Others are reproduced hereunder:- 11. We have carefully considered the arguments of both the sides and perused relevant material placed before us. The facts in the case of all the companies are similar. Therefore, they are being taken up together for adjudication. For the sake of brevity, we shall discuss the facts in the case of M/s Omni Farms Pvt.Ltd. instead of all the nine companies. 12. In the case of M/s Omni Farms Pvt.Ltd., the Assessing Officer, at paragraph 2, has recorded the following finding:- 2. A survey operation was conducted in the S K Gupta group ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious beneficiaries by using various firms/companies. Admittedly, the companies under appeal before us are the part of companies which were utilized by Shri S.K. Gupta for providing accommodation entries. In paragraph 26, the Settlement Commission has recorded the finding It is further observed that the paper books give complete details as to how and when cash was received from the mediators, the cash was deposited in the bank accounts of intermediatories and cheques were issued to the beneficiaries of almost the same amounts . Thus, after examining the facts, the Settlement Commission has recorded the finding that the cash deposited in the bank account of the intermediary companies was the cash received from mediators on behalf of the beneficiaries who wanted to avail the accommodation entries. It is further observed by the Settlement Commission It is further noted that there are overwhelming evidence in the impounded material as enclosed by the applicant in the paper book which show that the applicant is only entry provider and he had issued cheques after receiving cash from mediators and deposited the same in the bank account controlled by him . Thereafter, the Settlement Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commission itself should be approached for a declaration that its order of 17th March, 2008 is a nullity. Allowing any other authority, even by way of a notice under s. 153C, would be to permit multiple jurisdictions which can result in chaos. After all non-disclosure or suppression of information in respect of what is required to be revealed to the concerned authorities is akin to fraud and if it has a material bearing on the outcome of the assessment, it would most certainly be misrepresentation. 15. Thus, Hon'ble Jurisdictional High Court has held that the order of the Settlement Commission is final and conclusive as to the matter stated therein for the assessment year decided by the Settlement Commission. Admittedly, the order of the Settlement Commission in the case of Shri S.K. Gupta is for AY 2008-09 and all the appeals under consideration before us are for AY 2008-09. The CIT(A) denied to follow the order of the Settlement Commission remarking that all the relevant facts might not have been produced before the Settlement Commission. However, learned CIT(A) has not pointed out any specific facts which were not placed before the Settlement Commission. On the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g regard to the nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may issue such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment and such directions shall be binding on the Assessing Officer : Provided that no directions which are prejudicial to the assessee shall be issued before an opportunity is given to the assessee to be heard. Explanation. - For the purposes of this section no direction as to the lines on which an investigation connected with the assessment should be made, shall be deemed to be a direction prejudicial to the assessee. (emphasis by underlining supplied by us) 17. Thus, there is an order of the Settlement Commission as well as the Additional Commissioner of Income Tax under Section 144A holding that Shri S.K. Gupta was providing accommodation entries, he used various companies as conduit for providing the accommodation entries, cash was received through mediators from the persons who wanted to avail the accommodation entries, such cash was deposited in the bank account of the conduit companies and thereafter, cheque of the simil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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