TMI Blog2024 (3) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... t was available before the AO and recorded a clear cut finding that the assessee is acting as an accommodation entry provider/pass through entity and whatever money is received in the bank account is immediately transferred out to various parties and therefore came to a conclusion that a commission at the rate of 1.5% would be reasonable to be assessed as income and accordingly the assessment was framed. AO has taken a view which cannot be said to be incorrect on the basis of facts available nor is against any provisions of the Income Tax Act, 1961. AO has taken a possible view by applying and assessing the income at 1.50% of total credits in the bank account and the ld. Pr. CIT is not allowed to substitute his view in place of AO s vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction by ld. Pr. CIT u/s 263 of the Act thereby revising assessment framed by the Assessing Officer (in short ld. 'AO') vide order dated 21.12.2018 u/s 144 of the Act. 4. The facts in brief are that the assessment was framed u/s 144 read with Section 147 of the Act vide order dated 21.12.2018. Ld. Pr. CIT observed on perusal of the assessment records and ITS details that the assessment framed by the AO as stated above is erroneous and prejudicial to the interests of the revenue on two issues namely (i) that Rs. 19,43,047/- interest received from Deepak Baid has not been considered by the AO during the course of assessment proceedings which according to ld. Pr. CIT should have been disallowed and (ii) that the AO had credible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he credits and debits entries in the said statement observed that the total credits in the bank were Rs. 6,25,69,000/- and almost the entire amount has been transferred to various parties through RTGS and cheques and thus, taken possible a view that income has to be assessed on some percentage basis on the gross credits. Accordingly the ld AO applied the rate of 1.50% on the gross credits of Rs. 6,26,20,000/- as the assessee is engaged in the business of providing accommodation entries. In defence of argument the Ld. A.R. relied on the decision of Co- ordinate Bench of Delhi in the case of ITO vs. M/s Angel Cement Pvt. Ltd. Ors. In ITA NO. 4691/Del/2016 dated 18.03.2021 and the decision of Hon ble Allahabad High Court in the case of Prem C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee maintained with Development Credit Bank, Shakespeare Sarani, Kolkata and observed that total credits as appearing in the bank of the assessee were Rs. 6,55,69,000/- which was immediately transferred/transmitted to various parties through RTGS/Cheques and thus the net balance remaining with the assessee is only a very meagre amount in few thousands. We observe from the assessment order that though the assessee did not appear before the AO however, the AO while framing the assessment has taken a possible and plausible view on the basis of bank statement that was available before the AO and recorded a clear cut finding that the assessee is acting as an accommodation entry provider/pass through entity and whatever money is received in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommon shareholder, which is a subsidiary flagship Company, Bhushan Steel Ltd. now merged with Tata Steels Ltd. The fund have flown from Bhushan Energy Ltd. through maze of group companies whereby the funds which has been accounted in the books of Bhushan Energy Ltd. have been routed through group companies and finally have been rerouted back into the books of the Bhushan Energy Ltd. The entire chain and link involves actual movement of accounted fund of BEL in the form of share capital and or loan advances into the assessee company herein and subsequent reintroduction of such funds into regular account of BEL to augment its capital base. 67. Thus, it is quite evident that in various chains of links and the flow of the funds, nowhere ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o any income or money to make such an investment. In that case, addition may be warranted in the hands of the directors etc. However, that is not the case here. No other fact has been pleaded or found to exist as may save the assessee in this case from the addition made under section 68. 9. This is it us quite clear that AO has taken a possible view by applying and assessing the income at 1.50% of total credits in the bank account and the ld. Pr. CIT is not allowed to substitute his view in place of AO s view for the reason that he does not agree to AO s view. The case of the assessee is squarely covered by the decision of Bombay High Court in the case of Commissioner of Income Tax Vs Gabriel India Ltd. (supra). Taking into account thes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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