9911796707
TMI Blog2024 (6) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... several grounds. The main ground of the appeal is that the assessment order passed is high-pitched, expertise, not granting credit of tax deducted at source, holding that it is operated by an accommodation entry provider Mr. Shirish C Shah and confirming the penalty proceedings initiated. 3. Brief facts of the case show that in this case, the assessee filed return of income on 31.03.2017, declaring net loss of Rs. 15,33,796/-. However, the assessee paid tax under MAT provisions u/s. 115JB on book profit of Rs. 23,68,820/-. 4. Subsequently, the case was selected for scrutiny under CASS. Notice u/s 143(2) of the I.T. Act was issued on 19.09.2017. Further, notice u/s. 142(1) of the I.T.Act was issued from time to time, calling for various d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was actually engaged in business activities , the business loss & income u/s 115JB is considered as NIL. However, interest income is taxed as income from other sources. Since the assessee is not engaged in any actual business activities but was involved in issuing bogus accommodation entries, the TDS claim of Rs. 23114988/- was not allowed. Assessment order was passed u/s 143(3) of the Act on 22/12/2018. 7. On Appeal before Ld. CIT (A) confirmed the action of the learned assessing officer as before him assessee did not submit any further information despite 7 opportunities granted. The learned CIT - A also confirmed all the findings of the learned assessing officer and confirming that assessee company is a conduit company wherein one acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he papers but failed to appear before any of the authorities. He extensively read the order of the learned assessing officer. He further stated that the only grievance of the assessee is not granting credit for tax deducted at source. He submitted that when the assessee does not have any income, how the assessee is eligible for claiming tax credit. He referred to several provisions of the law wherein if there is an income to the assessee chargeable to tax under section 4 and 5 then only the assessee is eligible for a refund of tax deducted at source on such income. Here the income etc. does not belong to the assessee and therefore the assessee does not deserve credit for this tax. He also submits that all the transactions appear to be money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n at source of Rs 2,31,14,988/-. Before the lower authorities assessee has not shown that the income belongs to the assessee and the TDS also belongs to the assessee and therefore the lower authorities have not given any credit for tax deducted at source. We find that as the TDS certificates are issued in the name of the assessee it should generally be granted credit for TDS claimed. During the course of assessment proceedings, it is submitted that assessee is providing manpower services and cost of sales is back to back bills of manpower services received by the assessee. Thus, all the persons who have paid manpower services to the assessee , has deducted tax at source. The ld. AO should verify from each of such person to confirm whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly ground number 4 of the appeal is allowed with above directions. 14. Ground number 5 of the appeal of the assessee is with respect to the finding of the lower authorities that this is a conduit company operated by one accommodation entry provider. This is the finding of the fact arising on the basis of search. No contrary evidence is provided before us. However, in the interest of justice we set aside this ground of appeal back to the file of the ld AO with direction to the assessee to prove before the ld AO by producing directors of the company, necessary proof of services rendered, necessary proof of all kind of transactions entered by the assessee, along with the list of creditors, debtors stating their address PAN and where those ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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