TMI Blog2015 (12) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that there were no credit in the nature of M/s Garg Finvest Pvt. Ltd. and Shekhawati Finance Pvt. Ltd. In our opinion, the ld. CIT(A) fell in error by holding that the provisions of Section 68 are not applicable to the facts of the present case. Having regard to the modus operandi of accommodation entry providers, the practice of taking cash and receiving cheques in the guise of subscription and share capital consideration in the form of commission, the assessee company had not discharged its initial onus lying upon it, nor rebutted the report of Investigation Wing. Further, we find from the order of the CIT(A) that certain additional evidences/details were filed by way of paper book and there is nothing on record to show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 2004-05. Cross objections have also been filed by the assessee in the present appeal. The Revenue raised the following grounds of appeal: i. Whether on the facts and in the circumstances of the case and in law was CIT(A) justified in deleting an addition of ₹ 20,02,030/- made u/s 68 on account of alleged bogus accommodation entries received from M/s Garg Finvest Pvt. Ltd. and M/s Shekhawati Finance Pvt. Ltd. ii. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing. 2. The brief facts of the case are that the respondent assessee is a company duly incorporated under the provisions of the Companies Act, 1956. The return of income for the assessment year 2004-05 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant paragraphs i.e. para 5.5 is reproduced below: 5.5 From the reply, it is apparent that in the account books of the appellant Company, there is amount of ₹ 20 lacs received vide 2 cheques as share application money received from B.T. Technet Ltd. Thus, in the books of the Appellant Company there are no credits in the account of Garg Finvest Pvt. Ltd. and shekhawati Finance Pvt. Ltd. In this regard, detailed confirmation has been field before AO during the course of assessment proceedings which are available in the Paper Book. So as per requirement of section 68, AO has travelled beyond the jurisdiction and without making any meaningful enquiry in this regard. The reliance in the case of Gangeshwari Metals Pvt. Ltd. M/s Rhombu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived for M/s Garg Finvest Pvt. Ltd. and M/s Shekhawati Finance Pvt. Ltd. who are alleged to be the accommodation entry providers. Having regard to the modus operandi of accommodation entry providers, the practice of taking cash and receiving cheques in the guise of subscription and share capital consideration in the form of commission, the assessee company had not discharged its initial onus lying upon it, nor rebutted the report of Investigation Wing. Further, we find from the order of the CIT(A) that certain additional evidences/details were filed by way of paper book and there is nothing on record to show that the requirements of the provisions of Section 46A of the Income Tax Rules, 1962 had been complied with by the ld. CIT(A). In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
