TMI Blog2023 (5) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... issue has to be examined, therefore, AO is directed to look into all these aspects afresh and read judicate the issue after providing due opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes. - I.T.A. No. 59/GAU/2020 - - - Dated:- 1-5-2023 - Shri Rajpal Yadav, Vice-President (KZ) And Dr. Manish Borad, Accountant Member For the Assessee : Shri S.P. Bhati, FCA For the Revenue : Shri N.T. Sherpa, JCIT ORDER PER RAJPAL YADAV, VICE-PRESIDENT (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), Guwahati-2, dated 31.01.2020 passed for Assessment Year 2015-16. 2. The assessee has taken four grounds of appeal. However, its grievances revolve around a single issue, namely ld. CIT(Appeals) has erred in confirming the addition of Rs.20,00,000/-, which was added by the ld. Assessing Officer with the aid of Section 68 of the Income Tax Act. 3. Brief facts of the case are that the assessee has filed its return of income electronically on 30.09.2015 declaring total income of Rs.2,07,18,250/-. The case of the assessee was selected for scrutiny assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Financial Consultants Pvt. Limited. The ld. Counsel for the assessee for buttressing this statement took us through page no. 65 of the paper book. It is discernable that on 28.02.2015, a sum of Rs.10,00,000/- was remitted back to M/s. Amtek Financial Consultants Pvt. Limited through RTGS. The assessee has also provided the confirmation. It has repaid the loans to their creditors. 5. The ld. Assessing Officer has gone through the submissions of the assessee but did not accept them. He observed that statement of one Shri Sajjan Kumar Garg was recorded by the Investigation Wing and in that statement, he admitted that he has floated a large number of companies. A list of 29 companies has been referred by the ld. Assessing Officer and names of the assessee s creditors i.e. M/s. Associated Infraprojects Pvt. Limited and M/s. Amtek Financial Consultants Pvt. Limited are available at serial nos. 21 28. On the strength of the information given by the ITO, Ward-4(3), Kolkata as well as on the basis of statement of Shri Sajjan Kumar Garg recorded by the Investigation Wing on 31.04.2014, he treated both these loan transactions as bogus and made an addition of Rs.20,00,000/-. 6. Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are engaged in providing accommodation entries and, therefore, he conducted an inquiry. After enquiry, he made the addition and his conclusions met the approval of ld. 1st Appellate Authority. 3. Before us, ld. Counsel for the assessee contended that both the creditors have been assessed under section 143(3). Their assessments have been produced before the ld. Assessing Officer. The ld. Assessing Officer has not carried out any enquiry to ascertain their genuineness. He also submitted that ld. Assessing Officer has put reliance upon the statement of Shri Sajjan Kumar Garg, which was recorded by some other Officers during some other enquiry and not during the assessment proceeding during the year. Therefore, this statement ought to have not been relied upon. He also pointed out that assessee has repaid the loan to one of the Company during that very year and to the other Company in the next year. In order to determine its genuineness, we deem it appropriate to direct the Directors of the assessee-company to file an affidavit demonstrating the fact as to how they came in contact with such accommodation entry providers and through whom these loans have been arranged. This affid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the money amongst few companies without disclosing the real reasons. The income in A.Y. 2015-16 of M/s. Amtek Financial Consultants Pvt. Limited is only Rs.6,87,500/-. Though the assessment is under section 143(3) read with section 147 but it does not discuss the business undertaken by this concern. A small addition under section 14A has been made to the total income declared by the assessee. On the strength of the documents submitted by the appellant, it can be inferred that it has proved the identity of its creditor in the case of M/s. Amtek Financial Consultants Pvt. Limited but the genuineness of the transaction could not be proved by the assessee. Even if the loan transactions are through Banking channel, but the material confronted by the ld. Assessing Officer is of such a nature, which caused a shadow on this arrangement of loans. We have directed the assessee to submit as to how it came in contact for availing the loan with these two creditors. The only disclosure made by the Director is that he met with one Shri Ashok Mittal. What is the relationship of Mr. Ashok Mittal with M/s. Amtek Financial Consultants Pvt. Limited, it is not discernable. The complete facts are no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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