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TMI Blog2025 (2) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... well as on law and the same is prayed to be deleted. 2. The Ld. CIT(A) has failed to properly appreciate the nature of the banking transactions and cheques deposited by the appellant. The appellant has already explained that the cheques were part of regular financing operations and were not related to any unexplained money or accommodation entries. Despite this clarification, the addition was upheld without proper examination of the facts. The addition made under Section 69A is baseless and must be quashed. 3. The Order passed by the Ld. CIT(A) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. 4. Your appellant craves leave to add, alter, and/or amend all or any of the grounds before the final hearing of the appeal. 3. For the sake of ready reference, the observation of the Assessing Officer reads as under: 2. The case of the assessee has been identified as potential case flagged by the Directorate of Income tax (Systems) after risk profiling based on credible information. The information has been disseminated through the Insight Portal wherein enquiry reports and findings have been uploaded. In this case, informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not carried any transactions with Sanjay Tiberewal and his associates. In her submission the assessee submitted bank account statement of J& K Bank." However the assessee has not submitted all the bank account statements of her and her business concern some of which mentioned in the ROI as well as computation of income, where above transactions reflected. In addition to the above, the assessee submitted that she do not know and not made any transaction with Sanjay Tiberewal and his associates however in the bank account furnished of J&K Bank it is noticed that funds were credited in the bank account of the assessee from the M/s. Radhe corporation & Siddivinayak Textiles, hence submission of the assessee not tenable. Subsequently show cause notice was issued to the assessee on 26.03.2022 for proposed addition against which the assessee has not furnished reply within the time prescribed. 5. On perusal of the submissions made by the assessee, the assessment is completed as under: A Search U/s. 132 of the income tax act was conducted on 12.04.2019 in the case of Sanjay Govindaram Agarwal (also known as Sanjay Tibrewal) who is caring his business of trading in bed sheets under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be impossible to find one common link in all the bank opening forms, KYC. In this case all the bank accounts in the name of various persons such as Hasmukh Purohit, Harish Purohit, Vivek Agrawal, Sandeep Parmar, Lucky Bajoria, Alpa Shah and Jigna Shah have one common link (i.e.) ST. As discussed in the preceding paragraphs, the details of the bank accounts of these persons, signed blank cheques, name of the proprietary concerns, their ITRs, their notices from Income Tax Department, copies of submission to be filed with the Income Tax department- everything is also found in the possession of Sanjay Tibrewal. If Sanjay Tibrewal had no nexus in the operation of these concerns and their bank accounts, then none of the above mentioned evidences were to corroborate with the banking enquiries conducted and KYC forms maintained with the bank as discussed above. In this regard it is pertinent to mention that both Sanjay Tibrewal and his employee Shri Pradeep Agrawal have in their statements accepted that ST is into the business of providing accommodation entries. The same has also been stated by Harish M.Purohit in his statement. Also, the names of the various persons whose mobile nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such proprietary concern is running at the given address for the last 5-6 years. On further enquiring in the neighbourhood, no person seems to know about the above mentioned proprietary concern. Also there is no name plate or board or any kind of indicative sign plate of the concern at the above mentioned address. During the search proceedings, statement of Sanjay Tiberewal was recorded under section 132(4) of the I.TAct. From the statements of Sanjay Tiberewal it is clear that: Sanjay Tiberewal has stated that Shri Pradeep Agrawal is his employee and has been working with him for several years in his business of cheque discounting and cash business. Sanjay Tiberewal has stated that he was involved in the business of transfer of cash. He had also stated that the commission received by him for transfer of money was in cash and was unaccounted in the books of accounts. He has also stated that he was involved in the business of providing accommodation entries (i.e.) giving cheque entry in lieu of cash and vice versa for which also commission is charged by Sanjay Tiberewal in cash. The commission received in cash for the conduct of business of accommodation entries was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 013-14 which details were mentioned as above, however the assessee has not admitted the above transactions in his return of income for the year under consideration. As per the provisions of section 69A of Income tax Act, Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year. In addition to the above, from the bank account of the assessee it is very clear that the assessee has received funds i.e. Rs. 84,00,669/- from the accommodation entry providers M/s. Radhe Corporation, Krishna Enterprise, M/s. Sankar Corporation during the year under consideration very frequently though the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had no option but to get post dated cheques and again issue further post dated cheque to continue further credit facilities. 5.5.2 It can be seen from the above that the modus operandi of providing accommodation entries and the finance against post dated cheques are similar to one another. The appellant had not denied that the finance was obtained from Radhe Corporation, Shankar Corporation and Krishna enterprises. During the search/post search action it is gathered that employee of the Sanjay Govindram Agarwal opened bank accounts and their bank accounts used by the Sanjay Govindram Agarwal to provide accommodation entries. From the credible information, it is found that during the F.Y. 2012-13 relevant to the A.Y. 2013-14 business concerns of Harish M Purohit i.e. Radhe Corporation, M/s. Shankar Corporation and Krishna Enterprises made transactions with the business concerns of Kanodha Creations, Kanodia and Vinayak Propack. During the course of post search proceedings statements of Harish M. Purohit were also recorded on 19.10.2016 and he has explained the entire modus operandi of Sanjay Tiberewal. 5.5.3 In the appellate proceedings, burden of proof lies on the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has submitted due evidences to explain that the transaction in the bank statement reflect post dated cheque issued and cross barer cheque against the cheques received. The cheques received were deposited on the same day. On the due date the post dated cheques were being credited. It is a system of obtaining loans by issuing post dated cheques which are encashed within 90 to 110 days for availing credit. Further we find the total credits in the bank account were to the tune of Rs. 1.83 crores. The assessee has also submitted copies of confirmation of account from M/s. Krishna Enterprises, M/s. Shankar Corporation and M/s. Radhe Corporation and copies of several cheques issued in favour of (i) M/s. Krishna Enterprises, (ii) Bharatbhai Zalawadiya, (iii) Ghanshyam, Zalawadiya, (iv) Chauhan Imran I., (v) Raj Kamal Prints, (vi) K.S Corporation, (vi) Samkit Corporation, (viii) Mahar Synthetic Mill, (ix) Sumit Creation, (x) Mahadev Creation etc. The assessee has thus claimed that she has issued post dated cheques to these persons/entities to obtain finance. The copies of the cheques have been duly perused. 9. With regard to finance obtained from Radhe Corporation, Shankar Corporation a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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