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The Asstt. Commissioner of Income Tax, Central Circle-09, New Delhi Versus M/s Almondz Global Securities Ltd.

2015 (10) TMI 1059 - ITAT DELHI

Addition on account of accommodation bills - activity controlled by an admitted entry provider Sh. S.K. Gupta - CIT(A) deleted the addition - Held that:- None of the statements recorded before the A.O. Sh. S.K. Gupta has stated that his entire business is non genuine and all the bills issued by all his group companies are accommodation entries. He has at the same time not contradicted his categorical statement given before the Investigation Wing regarding the genuineness of the bills issued in t .....

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ns of Sh. S.K. Gupta are non genuine. This is more so when he had admitted that he is doing some genuine business also in the names of some of the companies. Thus, in the case of appellant, no adverse view from the statement of Sh. S.K. Gupta can be taken to come to the conclusion that the bills from Swen Television Ltd. are non-genuine and accommodation bills - Decided in favour of assessee. - ITA No. 3306/Del/2011 - Dated:- 2-9-2015 - SHRI I.C. SUDHIR AND SHRI INTURI RAMA RAO, JJ. For The Appe .....

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/-) on account of accommodation bills issued by M/s Swen Television Ltd. which was controlled by an admitted entry provider Sh. S.K. Gupta, to the assessee. 2. On the facts and in the circumstances of the case ld. CIT(A) has erred in ignoring the non production of the rate card and TRP rating of the telecaster M/s Jhankar TV as also of any evidence to establish any payment made by M/s Swen Television Ltd. to the said telecaster in respect of telecasting of the assessee s advertisement of its TV .....

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mary products for example bonds, government bonds, mutual funds IPO etc. It has filed the return of income for the assessment year 2007-08 on 30.10.2007, disclosing total income of ₹ 9,02,44,880/-. Against the said return of income, the assessment was completed vide order dated 24.12.2009 by disallowing the advertisement expenses of ₹ 80,13,936/- as under (para 4, page 3): 4. As no new plea nor any fresh evidence was submitted during the course of the proceedings for the year under a .....

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d the addition. 3. During the course of appellate proceedings, the appellant produced the addition evidence before the CIT(A). After considering the additional evidence, the CIT(A) vide para 27 of his order held as under: 21. Thus, to sum up, in none of the statements recorded before the A.O. Sh. S.K. Gupta has stated that his entire business is non genuine and all the bills issued by all his group companies are accommodation entries. He has at the same time not contradicted his categorical stat .....

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ation bills, it cannot be automatically presumed that all the bills issued by all the concerns of Sh. S.K. Gupta are non genuine. This is more so when he had admitted that he is doing some genuine business also in the names of some of the companies. Thus, in the case of appellant, no adverse view from the statement of Sh. S.K. Gupta can be taken to come to the conclusion that the bills from Swen Television Ltd. are non-genuine and accommodation bills. 4. During the course of hearing, it was subm .....

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ain basis of the Assessing Officer for making the disallowance is the statement of Shri S.K. Gupta recorded by the Assessing Officer. However, learned CIT(A) has recorded the finding that in his statement Shri S.K. Gupta has never mentioned that the bills issued by M/s ERA Advertising and Marketing Co. Pvt. Ltd. and M/s Hamara Samay T. V. News Network Pvt. Ltd. to Ajay Home Products Pvt. Ltd., i.e., the assessee, were in the nature of accommodation entries. The assessee has filed confirmation ce .....

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ses, TDS was deducted at source and moreover, service tax was also paid. The CD containing the text of advertisement was also produced. Considering these facts, in our opinion, the learned CIT(A) rightly held that the assessee has discharged its onus of proving that the payment to M/s ERA Advertising and Marketing Co. Pvt. Ltd. and M/s Hamara Samay T. V. News Network Pvt. Ltd. was towards actual advertisement expenses and not accommodation entries. In view of the totality of the above facts, we .....

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reafter his statement was recorded on 27.12.2006 which is more specific in relation to their transaction with the assessee. It has been deposed that the bills issued by M/s. Era Advertisement and Marketing Pvt. Ltd. are in the nature of accommodation entries but M/s. Swen Television Ltd. has provided advertising services to the assessee company for which agency commission @ 15% has been charged. The payments made by the assessee and received by M/s. Swen Television Ltd. have been verified from b .....

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CIT(A) that the assessee was entitled to the deduction of expenditure incurred for advertising on Jhankar TV through advertisement agent, M/s. Swen Television Ltd." 3. DCIT Vs. M/s ASL Insurance Brokers Pvt. Ltd., (ITA No. 2713 & 3579/Del/2010, dated 09.04.2012): 5. We have considered the facts of the case and submissions made before us. It is seen that the revenue collected information in the course of search of Shri S.K. Gupta and his Companies that they were carrying on the business .....

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