TMI Blog2018 (8) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus bills for commission. The said statement remained uncontroverted till now. The learned CIT (A) upheld the addition of said commission in the hands of the Appellant. No order of Tribunal was produced before us to reverse the same but it was said that the appeal is pending. Even copy of appeal was not filed before us. It is also relevant to record here that the Appellant stated that the statement recorded by the Income Tax Department was under coercion. However, when we inquired from him that the statement was recorded on 23rd October, 2009 and for the last Nine years why he has not retracted or disputed the same, for which, no answer at all was given by the Appellant. Consequently, when the Appellant has himself admitted charging commission at every stage of proceedings, there is no scope to challenge the findings and the Order passed by the Board of Discipline. On the careful perusal and consideration of the materials on record, we do not find any ground to reduce the punishment awarded to the Appellant as well. - Decided against the appellant CA. - APPEAL NO. 08/ICAI/2018 - - - Dated:- 4-8-2018 - Hon ble Mr. Justice M.C. Garg Chairperson, Hon ble Mr. Sunil Goyal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present appeal as narrated in the Report dated 19th January, 2017 of the Board of Discipline are that Shri SSSB Ray, Nagpur has filed a complaint in Form I dated 27th May, 2013 against the Appellant. The brief of the charges alleged by the complainant in his complaint are as under:- i. The Respondent, the appellant herein, had arranged accounting bills raised by 16 parties amounting to ₹ 14.09 Crores to M/s Sunil Hi-Tech Engg. Ltd (SHEL).The said entries were not genuine. ii. The Respondent, the appellant herein, had charged commission @0.25% to 1% of the transactions for arranging accounting entries. iii. The Respondent, the appellant herein, had been involved in arranging bogus bills, accommodation entries and circular transactions for trading in coal through bank LC limits for various other parties. 3. The aforesaid complaint was taken up for consideration by the Director (Discipline) of the Institute of Chartered Accountants of India, who vide Order dated 10th October, 2015 found the Appellant Prima Facie Guilty of the misconduct falling within the meaning of the aforesaid Clauses of the Chartered Accountants Act , 1949. 4. Director (Discipline) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial evidences showing that the assesse was arranging bogus sub-contract bills as well as other accommodation entries for his clients mainly Gupta Coal Group, Sunil Hitech Group and Linkson Group. On the basis of documents seized during search and the statements of the assesse as well as his employees, the AO has observed that the assesse, Shri D.P. Sarda had floated various concerns in the name of his relatives and persons of very low or no means. For example, concerns were floated in the names of employees like drivers (Baban Yadav, servants (Ravi Yadav), petty shop keepers workers, etc. or the relatives. These persons being of no-means agreed to lend their names for small amounts of ₹ 500/- to ₹ 10,000/-. For example, M/s Ajay Trade Link is the proprietary concern of Shri Ajay Yadav (a relative of assesses s servant, Shri Ravi Yadav), M/s S.N. Coals and Coke is a concern of Ravi Yadav (a servant of the assessee) and P.R. Traders is a concern of Rajesh Dass, who is an associate of the assessee. Signature of these people was obtained on blank documents to open Bank accounts, and to obtain PAN for these concerns. Signatures of these people were obtained on blank cheque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the same manner as was described by you in your reply to questions No. 2 in respect of bills raised in the names of the 12 persons mentioned therein? Ans. Yes, bills were prepared in the names of Smt. Sandhya DassSmt. Dudha Nawal M/s. Raj Industries in the same manner blank signed cheques were also obtained from there three persons and handed over to Shri R. S. Tiwari, GM (Finance), SHEL in the same manner. 23. It is seen that Shri D.P. Sarda has admitted that bills for sub-contract work done for Sunil Hitech Engineers Ltd (SHEL) were raised in the names of these 12 persons mentioned above. All these bills were made on his personal computer in his office. Mr. Radhey Shyam Tiwari, G.M. (Finance), SHEL had requested the assessee to arrange for bills, accordingly the bills were prepared and signature of above persons in the respective bills were obtained by him. 24. The statements of the 12 persons mentioned above were recorded during the assessment proceedings by the AO each one of them has confirmed that the assessee had used these persons for his various activities. These persons were barely educated and were in poor financial condition and therefore could e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Appellant involved in arranging the bogus bills through bogus concerns promoted by him and charged commission for that. 6. Accordingly, the Board of Discipline found the Appellant guilty of professional and other misconduct falling within the meaning of the aforesaid clauses of the Chartered Accountants Act, 1949, and subsequently awarded the punishment as detailed supra. 7. During the proceedings of the present Appeal before us, the Appellant was present in person, where he reiterated the same submissions as made by him before the Board of Discipline and have taken various grounds of Appeal which are being disposed of as below. 8. The first ground of Appeal taken by him is about not getting adequate opportunity of hearing before the Board of Discipline. The Appellant submitted that he was not given adjournment and proper time to submit evidence and defend his case. We asked the Appellant that whatever opportunity was not given to him by the Board of Discipline, he can file any new evidence and raise any argument now before us. However, in response, no new evidence or argument was brought by the Appellant before us. In fact, we have noted that the Board of Disciplin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem through cheques against bills raised. On the bottom of Pg. 62 and on Pg. 61 accounts were prepared to return the cash after deducting the commission. These calculations pertain to amount withdrawn in cash from bank A/c in the names of the mentioned contractors and returned to the promoters of SHEL. Commission in respect of the transactions described above and earlier during my statement recorded u/s 131 on 08.10.09 done through accounts in the name of various sub-contractors was charged @0.25% of the bill amount. In respect of transactions done through accounts in the name of Mahendra Bokade and Ganesh Prasad Shukla commission was charged @0.75% of the bill amount. These calculations are on Pg. No. 61 62 are in my own handwriting. 14. The said statement remained uncontroverted till now. The learned CIT (A) upheld the addition of said commission in the hands of the Appellant. No order of Tribunal was produced before us to reverse the same but it was said that the appeal is pending. Even copy of appeal was not filed before us. It is also relevant to record here that the Appellant stated that the statement recorded by the Income Tax Department was under coercion. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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