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TMI Blog2025 (5) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals filed by the assessee, emanating from respective assessment orders passed by the Assessing Officer [AO] tabulated hereunder:- Sr. Nos. ITA/C.O Nos. CIT(A) Order dated Assessment Order dated Assessment order passed under section 1. 204/Del/2022 [AY 2014-15] 23.11.2021 19.12.2018 153C r.w.s. 153A/143(3) of the I.T.Act, 1961 2. C.O.No-200/Del/2022 -do- -do- -do- 3. 205/Del/2022 [2015-16] 23.11.2021 19.12.2018 153C r.w.s. 153A/143(3) of the I.T.Act, 1961 4. C.O.No-201/Del/2022 -do- -do- -do- 5. 206/Del/2022 [AY 2016-17] 23.11.2021 19.12.2018 153C r.w.s. 153A/143(3) of the I.T.Act, 1961 6. C.O.No-202/Del/2022 -do- -do- -do- 7. 207/Del/2022 [AY 2017-18] 23.11.2021 19.12.2018 153C r.w.s. 153A/143(3) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve basis. While holding so, the AO observed that the assessee company is found to be merely a conduit company used to route accommodation entries through bank account of the assessee company. The assessee has merely acted as pass through entity and was not owner of the credit entries so routed through its banking account. Based on such premise, the CIT(A) reversed the additions made on protective basis under the shelter of s. 68 of the Act. (ii) The AO also estimated commission income on substantive basis for providing the accommodation entries which were subjected to protective assessment under s. 68 of the Act. 5. In this backdrop, the Ld.CIT DR for the Revenue pointed out that the CIT(A) has mis-directed himself in law in granting rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accommodation entry provider to introduce unaccounted funds of the beneficiaries in their respective accounts. The CIT(A) accordingly called for the Remand Report. In the Remand Report, the AO verified the fund flow statement depicting the source of funds and utilization of the same for payment to beneficiaries. The CIT(A) thus observed that based on the Remand Report, it is evident that the AO has identified that the money deposited in the bank accounts belong to other parties and the assessee company was a mere name lender and for which commission was charged and earned by Shri Anand Kumar Jain and Shri Naresh Kumar Jain who were stated to be managing and controlling such entities. The CIT(A) thus observed that it is settled position of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the Coordinate Bench in the case of ACIT vs Karda Traders (P.) Ltd. & Others in ITA Nos.196/Del/2022 & Others for the Assessment Years 2012-13 & Others order dated 09.01.2025 is reproduced hereunder for ready-reference:- 11. "We have heard carefully the rival submissions in the group of bunch of appeals. As it emerges from the record the additions have been made under s. 68 by the AO in the assessment order passed under s. 153C on protective basis on the premise that the respondent-companies herein above are conduit companies and merely a entry providers. The Ld.CIT(A) has granted relief to the assessee on the premise that the additions under s. 68 in the hands of the respondent company are not sustainable on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld.CIT(A) or dislodge the action of the Ld.CIT(A). It will thus equitable to restore the appeal to the file of the Ld.CIT(A) for adjudication afresh in accordance with law. It shall be open to the assessee to place arguments and adduce evidences as may be considered expedient to defend the stand of the assessee on the subject matter of dispute. 13. Apart from the merits, the restoration of the appeal before the Ld.CIT(A) is also desired owing to the fact emerging that the company was struck off from the records of the RoC by order dated 03.04.2017. Therefore, the authority of the assessee before the Ld.CIT(A) to file appeal on behalf of the non-existent company calls for examination to ascertain the maintainability of the appeals befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration. Therefore, in the totality of circumstances, we consider it expedient to restore all these captioned appeals of the Revenue as well as objections raised by way of cross-objections to the file of Ld.CIT(A). The Ld.CIT(A) shall determine various issues reflected in the Revenue's appeal as well as in the cross-objections in accordance with law after giving reasonable opportunity to the assessee. The respective first appellate orders are thus set aside and restored for fresh adjudication in accordance with law by the Ld.CIT(A). 15. In the result, all captioned Revenue's appeals as well as cross-objections of the assessee are allowed for statistical purposes." 8. In consonance with the view expressed, we consider it equitable to res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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