TMI Blog2015 (5) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of cash with Mr. Gupta when the cash was deposited in the bank accounts of assessee company. This issue is essentially based on the facts. The interest of justice would be met, if the matter is restored to the file of the Assessing officer with a direction that the Assessing Officer shall verify the disclosure made in the case of Mr. S.K. Gupta before the Hon’ble settlement commission and whether the amount of cash deposited in the present case is covered by such disclosure. If the cash deposited in the assessee case is covered, in the disclosure of Mr. S.K. Gupta before settlement commission, the addition may be deleted. See M/s KSA Chits Pvt. Ltd. Versus Dy. Commissioner of Income Tax [2015 (3) TMI 881 - ITAT DELHI ] - Decided in favour of assessee for statistical purposes. - ITA No. 3576/Del/2013 - - - Dated:- 22-4-2015 - Shri G.C. Gupta And Shri Inturi Rama Rao JJ. For the Appellant : Sri V. Raja Kumar Advocate For the Respondent : Shri Vikram Sahay, Sr. DR ORDER Per Shri Inturi Rama Rao, AM: 1. This is an appeal by the assesee company for the AY 2008-09 against the order of Commissioner of Income Tax (Appeals)-XXXIII dated 20.03.2013 in IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 8,062/-. After processing the return of income u/s 143(1) of the Act, the case was selected for scrutiny by issuing notice u/s 143(2) and the assessment order came to be passed on 27.12.2012 u/s 143(3) of the Act at the total income of ₹ 1,14,99,560/-. The disparity between returned and assessed income was on account of addition of ₹ 1,14,90,113/- found deposited in bank account namely, South Indian Bank (C.R. Park) New Delhi bearing Account No. 0358073000002321 held in the name of the assessee company. During the course of assessment proceeding, the Assessing Officer found an amount of ₹ 1,14,90,113/- was deposited in the Bank account of the assessee company. The assessee company was called upon to explain the source for such cash deposits. The assessee company had explained that it was one of the group concerns of one Mr. S.K. Gupta. Mr. S.K. Gupta is engaged in the business of providing accommodation entries to various persons. The modus operandi of business of Mr. Gupta was explained as follows:- .Sh. S.K. Gupta operates a number of accounts in the same bank/ branch or in different branches, in the names of companies/firms/proprietary concerns and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, an appeal was preferred before Commissioner of Income Tax(Appeals)-XXXIII, New Delhi, who vide order dated 20.03.2013 dismissed the appeal. Before the CIT(A) it was submitted inter alia that the assessee company is merely a conduit for providing entries to the beneficiary against cash given by them. The cash is deposited in the various bank accounts. And as already submitted, cheques are issued through these assessee companies to the ultimate beneficiaries. Hence, it is respectfully prayed that no income other than that disclosed in the Profit Loss Account/return of income immures to the assessee company. All the deposits in the bank account which stands fully explained. In support of the proposition that only commission income alone should be taxed in the hands of the assessee company reliance was placed by Hon ble Delhi High Court in the case of Manoj Agarwal and Special bench decision of Mumbai Tribunal in the case Gold Star Finvest P. Ltd. V. ITO, Mumbai in ITA No. 4625/MUM/2005. The Ld. CIT(A) after considering the submissions had turned down the plea of assessee company by holding that Hon ble Settlement commission has not given any comments for credit in the books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the beneficiary of the accommodation entry. The nexus between the cash deposits and the source of the such deposits was not proved and therefore, the addition should be sustained. 7. We heard the rival parties. On perusal of assessment order it is clear that the assessee failed to offer any explanation for the sources of cash deposited in the Bank account No. 0358073000002321. It was only during the course of proceeding before the CIT(A), explanation as stated above was filed. In our considered opinion the explanation does not conclusively explain the source for the cash deposits. Even the order of Hon ble Settlement Commission in the case of Mr. S.K. Gupta does not provide any clue about the sources for the cash deposits in the name of the assessee company. No doubt, the order of settlement commission attained finality and as a consequence of it the assessment proceedings in the case of Mr. S.K. Gupta had become conclusive. But this cannot be extended to the case of assessee company, in as much as each assessment is independent and separate. As we understand, no entries in respect of the cash deposits were made in the books of account maintained, if any. In such cases, provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Tarun Goyal Anr. Vs. ACIT in ITA No. 4636 4637/Del/2012 dated 18.10.2013 had set aside the matter to the file of Assessing Officer with the following directions: 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 have in over all view of the matter and eliminate chain/multiple transaction, for arriving at the correct assessable amount. Thus we have no other alternative but to set aside all these appeals to the file of the AO for fresh adjudication in accordance with law. 23. The AO shall after examining the evidence submitted by the assessee, consider all the cases together and; a) restrict the addition u/s 68 to only the peak unexplained credit in each case after elimination circular transaction. b) To eliminate taxation of the same amount multiple times, due to the chain transactions which resulted due to layering indulged by the assessee. c) Consider the material on record and the precedence available on the issue and determine the percentage of commission, which the assessees would have earned and bring the same to tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
