TaxTMI 
TaxTMI 
2014 (1) TMI 1284
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....the issues urged in these appeals are identical in nature and further since they arise out of common set of facts, they were heard together and are being disposed of by this common order for the sake of convenience. 3. None appeared on behalf of the assessee despite service of notice by affixture through the Department. Hence, we proceed to dispose of the appeals ex parte. 4. The facts which are common in all these appeals are set out in brief. The assessees herein are partnership firms. The Assessing Officer, on going through the bank accounts of these assessees, noticed multiple deposits and withdrawals. The assessing officer made enquiries with the partners of the above said firms and found that they are the employees/relatives of ....
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.... firms, viz., M/s National Sea Foods, availed overdraft loan facility against the deposit of Rs.50.00 lakhs cited above. While closing the fixed deposit, the overdraft loan was adjusted against the deposit. (i) The department made enquiries with Shri C. Arun Kumar, the branch head of Centurion Bank. In the statement taken from him, he submitted that the bank account in the name of M/s Western Sea Foods was opened at the request of Shri Bineesh Mathew, Shri K.T.Sharif and Shri O. Kasim. When the volume of cash transactions increased, the bank insisted for deposits and accordingly a sum of Rs.50.00 lakhs was deposited by the son of the assessee, Shri Asarulla Raka Khan. He further submitted that new accounts were opened in the name of othe....
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....he business of all the partnership firms was stated as "Sea food exports" in the partnership deed. However, they did not carry out any activity relating to sea food export. The bank accounts were having only deposits and withdrawals of money. In view of the information listed in the preceding paragraph, the assessing officer came to the conclusion that (a) All the partnership firms are bogus firms floated by Shri K.P. Abdul Majeed. (b) Shri K.P. Abdul Majeed has used these bank accounts to carry out hawala transactions, viz., distributing money and deriving commission. 6. The Assessing Officer preferred to make additions on substantive basis in the hands of Shri K.P. Abdul Majeed and on protective basis in the respective hands of t....
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....oration, which is one of the firms related to the assessee. The extract of the order sheet in the case of one of the firms M/s. Oasis Corporation for the A.Y. 2002-03 is reproduced below on this account:- "03.12.2012 - Shri AV Muralidharan, Advodate attends for A.Y. 2002-03 and 2003-04 for both quantum and penalty. States that the appellants are not related to the business transactions involved. Since it has already been stated in the statements dated 08-05-2006 by Bineesh Mathew (Partner in the appellant firm) that he was signing and operating the concerned bank accounts which are involved in this case on the instruction of his employer Shri Abdul Majeed, vide answer to question No. 3 & 9 in the above statement by ACIT, Circle-1(1). The....
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....ands of the assessees herein, in order to protect the interests of the revenue. Accordingly, the Ld D.R submitted that the Ld CIT(A) should not have cancelled the impugned protective assessments. 10. We have heard Ld D.R and perused the record. Admittedly the assessments have been made on substantive basis in the hands of Shri K.P. Abdul Majeed and on protective basis in the hands of assessees herein. When all the assessees challenged the assessment orders passed in their respective hands, the Ld CIT(A) upheld the substantive assessments made in the hands of Shri K.P. Abdul Majeed and accordingly cancelled the protective assessments made in the hands of assessees herein. 11. Shri K.P. Abdul Majeed has also challenged the orders passed....