TMI Blog2019 (2) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... al outcome of the proceedings arising from the substantive assessment. Keeping in view the decision of CIT –vs. - Surendra Gulab Chand Modi [1981 (3) TMI 21 - GUJARAT HIGH COURT] we hold that the CIT(Appeals) was not justified in deleting the additions made by the Assessing Officer on protective basis in all the three years under consideration without awaiting for the final outcome of the proceedings arising from this substantive assessment. We, therefore, set aside the impugned orders of the CIT(Appeals) on this issue and remit the matter back to him for keeping it alive and pending till the outcome of the proceedings arising from the substantive assessment. Additions made on account of commission income allegedly received by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... canti le Cooperative Bank at Mumbai , which was control led by Shri Ketan Parekh. Since the assessee company was one of such entities, the statement of its Director Shri Pramod Sharma was recorded under section 131 by the DDIT (Investigation), Kolkata on 15.12.2006. In the said statement given on oath, Shri Pramod Sharma accepted that he had got cash of equivalent amount from the Mumbai based Companies belonging to Shri Ketan Parekh Group and after depositing the said cash into the Bank account of the assessee-company, cheques were issued to the said Companies. He also furnished a l ist of cheques so issued against cash that had been received by him. Although Shri Pramod Sharma subsequently filed an affidavit retracting his statement, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of 2% amounting to ₹ 25,82,000/- and ₹ 14,43,919/- to the total income of the assessee for A.Ys. 2006-07 and 2007-08 respectively. He also made additions of ₹ 12,91,00,000/- and ₹ 7,21,95,941/- simi larly on protective basis in the assessments completed under sect ion 143(3) for A.Ys. 2006-07 and 2007-08 respectively for the total amount of accommodation entries provided by the assessee-company to the Mumbai based Companies belonging to Ketan Parekh Group observing that unexplained income to that extent was l iable to be assessed on substantive basis in the hands of the said companies for the cash given to the assessee-company. 3. Against the orders passed by the Assessing Of f icer under sect ion 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO has not even responded to the letters of the CIT(A) . In thi s factual background; given the fact s of the case and the findings of the AO in hi s assessment order; ' and also, the decisions of the Hon'ble juri sdict ional ITAT in similar cases involving identical facts and circumstances, the present appeals is now being decided on the basis of the material avai lable on record. 7. I have perused the relevant orders. I have also considered the submissions made on behalf of the appellant . I f ind that the issues involved in this appeal are covered by the orders of the Hon ble jurisdictional ITAT wherein similar additions , under identical facts and circumstances, were deleted. Respect fully following the decisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition made by the Assessing Officer on account of commission income allegedly received by the assessee for giving accommodation entries. It is observed that the similar issues were involved in some other cases and all these cases were adjourned in the past and also blocked for some period for getting the information about the status or outcome of the cases where the similar amounts were added on substantive basis. Inspite of sufficient time given to both the parties, they have failed to furnish the said information. It is well sett led that protective assessment is permissible in law and in case of a doubt or ambiguity about real entity in whose hands a particular income is to be assessed, the assessing authority is entitled to have r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed the Tribunal to keep the matteraive and pending awaiting the decision of the Hon ble Supreme Court in the proceedings arising from the substantive assessment. 5. In the present case, the ld. CIT(Appeals) did not await the outcome of the proceedings arising from the substantive assessment and since the said information was not forthcoming even after a considerable period from the concerned assessing officer, he proceeded to dispose of the appeals arising from the protective assessments by his impugned orders and deleted the addition made on protective basis without await ing the final outcome of the proceedings arising from the substantive assessment. Keeping in view the decision of the Hon ble Gujarat High Court in the case of C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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