9911796707
TMI Blog2025 (4) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2015-16. 2. In this appeal, the Revenue has raised the following grounds: - "1. On facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 71,91,040/-on account of accommodation entry in form of Bogus expenses without appreciating the fact that the entry providing company M/s Culminating Management Put. Ltd. is a shell/ paper/dummy company as per information received from Investigation wing." 2. The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the AO be restored." 3. The only issue that arises for our consideration, in the present appeal, pertains to the deletion of the addition made on account of the accommodation entry of bogus billing. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s deliberations with M/s. Tide Water Oil Co. (India) Ltd. for market development and to improve its sales of core and non-core products, and thereafter, the assessee was appointed as a Market Development Partner for the State of Maharashtra. The assessee submitted that as a Market Development Partner, it was required to co-ordinate with its area in-charges, Manager-Sales, to achieve overall improvement in sales in the State of Maharashtra, and for the same, on the recommendation and advice of one Mr. V.K. Kulkarni, M/s. Culminating Managing Pvt. Ltd. was appointed for the market development of the core products of M/s. Tide Water Oil Co. (India) Ltd. The assessee further submitted that M/s. Culminating Management Pvt. Ltd. raised its tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld the initiation of reassessment proceedings under section 147 of the Act, however, granted relief to the assessee and deleted the addition of Rs. 71,91,040/- made by the AO on account of accommodation entry in form of bogus billing on the basis that the AO solely relied upon to the report of the Investigation Unit and no inquiry or investigation was done by the AO independently. The learned CIT(A) further held that the AO has not established the allegation of taking an accommodation entry by the assessee for booking bogus expenses. Thus, on the basis that the assessee has duly discharged its onus by way of requisite evidence regarding the genuineness of the transaction, the learned CIT(A) deleted the addition made by the AO. Being aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iding market development services. Further, we find that the assessee also placed on record a copy of the extract of the bank statement to prove that the said amount was paid through RTGS after deduction of applicable TDS. In order to substantiate the genuineness of the transaction, it is further the plea of the assessee that the amount paid to M/s. Culminating Management Pvt. Ltd. was reimbursed by M/s. Tide Water Oil Co. (India) Ltd., upon an invoice being raised by the assessee for claiming the reimbursement of market development expenses, inclusive of service tax paid. Therefore, it is evident that the assessee furnished various evidence during the re-assessment proceedings to discharge its onus of establishing the genuineness of the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia) Ltd., which, after due verification by the Deputy Manager of M/s. Tide Water Oil Co. (India) Ltd. was certified for the reimbursement. Therefore, in this entire transaction, it is pertinent to note that M/s. Culminating Management Pvt. Ltd. is a service provider, while M/s. Tide Water Oil Co. (India) Ltd. is the actual service recipient. Thus, it is evident that in the peculiar facts of the present case, the assessee cannot be alleged to have availed the accommodation entry, transaction of bogus billing, since it is merely acting as an intermediary for M/s. Tide Water Oil Co. (India) Ltd. However, it is evident from the record that the AO did not examine any of these aspects of the instant case and merely because M/s. Culminating Manage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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