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2016 (10) TMI 352 - ITAT DELHI

2016 (10) TMI 352 - ITAT DELHI - TMI - Addition u/s 68 - disallowance for receiving bogus accommodation entries - Held that:- It is a well settled law that addition cannot be made simply basing on some report like Report received from Investigation Wing etc. and when the assessee produces certain evidence, the onus lies on the AO to cause enquiries/ verification to demolish that evidence. However, in the present case no such attempt has been made by the AO and no enquiry or verification was ever .....

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05-06. The grounds raised in the revenue s appeal reads as under:- 1. Whether on the facts and circumstances of the case and in law the Ld. CIT(A) is justified in deleting the addition of ₹ 60,00,000 made by the Assessing Officer (AO) u/s 68 of the Income Tax Act (me Act) on account of disallowance for receiving bogus accommodation entries even when the assessee did not discharge its onus u/s 68 of the Act? 2. Whether on the facts and circumstance e case and in law the Ld. CIT(A) is justif .....

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nal High Court in case of CIT Vs Jansampark Advertising and Marketing (P) Ltd (2015) 375 (Del)? 4. That the order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law. 5. That the appellant craves leave to add, alter, amend or forgo any ground(s) of appeal either before or at the time of hearing of the appeal 2. The brief facts of the case are that the aassessee had filed its income tax return u/s 139 on 31.03.2006 declaring loss of ₹ 19,44,961 which was duly accompanied b .....

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ress of the company was within the knowledge of the assessing officer. According to the assessee, this notice was never served upon the assessee. AO observed that it reveals that notices u/s 142(1) were issued on 13.08.2012,8.10.12,27.11.12 and 14.12.12 & 4.03.2013 but the same were also never received by the assessee since issued at the wrong address. Thereafter, the assessee received the copy of final notice u/s 142(1) from one Mr. Jolly having his office at 3911, East Patel Nagar, New Del .....

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eedings vide letter dated 7.2.2013 wherein it was stated that the assessee had received the advance of ₹ 60,00,000/- in terms of agreement to sell the property from M/s Cubic Commercial Resources Ltd. through account payee cheque in the normal course of its business activity and the same was duly reflected in the audited statement of accounts. Accordingly, it was requested that reassessment proceedings be dropped. The assessing officer, vide order dated NIL, rejected the request of the ass .....

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3.2013 and filed all the information mentioned above vide letter dated 15.3.2013 along with the submissions. The assessment proceedings were adjourned to 20.03.2013. On 20.03.2013, the proceedings were verbally adjourned to 26.03.13 but on that date, the AO refused to accept the additional documents and therefore the same were sent by the assessee through speed post. Thereafter, the AO completed the assessment vide his order dated 26.03.13 u/s. 147/143(3) of the Income Tax Act, 1961 and added th .....

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ore the Tribunal. 5. In this case, Notice of hearing to both the parties, in spite of the same, Department nor its Representative appeared to prosecute the matter in dispute, nor filed any application for adjournment by the Department. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, we are of the view that no useful purpose would be served to issue notice again and again to the Department, therefore, we are deciding the present appeal .....

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Appellate Authority has elaborately discussed the issue in dispute by considering the submissions of the assessee and adjudicated the issue as under from pages 24 to 26 of the impugned order. The said relevant paras are reproduced as under:- From the above statement, Sh. SK Gupta was stating that he received cash and in turn issued cheques. But from the bank statement, the source of funds for M/s Cubic Commercials, in most of the cases was clearance of cheques, to advance money to the assessee. .....

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quiry were also issued to the company or its Pr. Officers. AO did not ask the assessee also to produce them. The entire addition was based on the statement of Sh. S.K. Gupta who was neither a share holder nor a director of M/s Cubic Commercials. But the copy of the sworn statement of Sh. S.K. Gupta was never made available to the assessee. Even on 15th March, 2013 assessee again requested for copy of the statement and requested for cross examination of Sh. S.K. Gupta, which was not provided to t .....

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.- 333 ITR 119 (Del) OASIS HOSPITALITIEs P. LTD. As far as the creditworthiness or financial strength of the creditor / subscriber is concerned, that can be proved by producing the bank statement of the creditors / subscribers showing that it had sufficient balance in its accounts to enable it 10 subscribe to the share capital. Once the documents are produced, the assessee would have satisfactorily discharged the onus cast upon him. Thereafter, it is for the Assessing Officer to scrutinise the s .....

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om accounts and even their Income- tax details. From hank accounts of these shareholders, it was found that they had deposited certain cash and the source thereof was questionable. The Assessing Officer should have made further probe which he failed to do. Moreover, the remedy with the Department lay in reopening the case of the investors and the addition could not be made in the hands of the assessee. MOD CREATIONS PVT. LTD. (Delhi) All documents filed Sufficient balance in accounts of creditor .....

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ing on inv report Addition deleted 361 ITR 10 (Del)- GANGESHWARI METAL P. LTD. Amount received by ale payee cheque Documentary evidence by A Identity of investors established No enquiry by AO No attempt to prove documents were fabricated. Mere reliance on Inv. Report not enough. 361 ITR 155 (Del)-NIPUA AUTO PVT. LTD. AO failed to produce any tangible materials to doubt veracity of documents furnished by assessee. Addition deleted. In all the above cases, it has been held by the Hon ble Judiciary .....

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