TaxTMI 
TaxTMI 
2012 (11) TMI 1197
X X X X Extracts X X X X
X X X X Extracts X X X X
....eard together and are being disposed off by way of this common order for the sake of convenience. 2. The only effective ground raised by the assessee in assessment year 1999-2000 is as under: "The CIT(A) has wrongly treated the commission income s 5% of the amount of the drafts/pay order transactions conducted at the behest of the appellant. 3. The grounds raised in the remaining three years are identical and it was agreed by both the sides that the facts and arguments are also identical and therefore, appeal for the assessment year 1999-2000 may be first decided and for the remaining assessment years, the decision in assessment year 1999-2000 can be followed. 4. Brief facts till the assessment stage are noted by Ld. CIT(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the ADIT and his statement was recorded u/s. 131(1) wherein it was categorically explained by him that he had transactions of borrowings with M/s. Durga Finance and denied obtaining any demand drafts on payment of cash or getting the cheques discounted from M/s. Durga Finance. This statement of the assessee was not found to be in conformity with the statement of Shri Harin Thakkar who had denied of having undertaken any money lending transaction with the appellant. Accordingly, the details of transactions recorded in his name in the books / material impounded from M/s. Durga Finance were furnished to the appellant. However, the AO was not convinced with the explanation offered by the appellant as according to him some of the demand drafts w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of relationship with M/s. Durga Finance. 4.2 The A.O. also conducted enquiries with Indian Oil Corporation, M/s. Liladhar Petroleum, M/s. Durga Finance and Gas Authority of India Ltd, the outcome of which is reflected as under: a) Indian Oil Corporation confirmed that they had issued material against three demand drafts received from M/s Liladhar Petroleum and M/s. Veer Shahid Petroleum. b) Shri Samantsinh Mahida, partner of M/s Liladhar Petroleulm, in his statement recorded stated that the appellant was arranging all the funds for the business and that Shri Snehal Shah, nephew of the appellant was also a partner. c) Mr. Harin Thakkar, Manager of M/s Durga Finance had stated that'they were issuing demand drafts/cheques to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... further held that the income-tax proceedings being civil proceedings, the evidences as required in criminal proceedings are not necessarily required to prove the transactions as relating to the appellant for assessment of the income. 4.4 The AO on the basis of above finding's held that the transactions recorded in the name of the appellant represented the undisclosed investment for which no explanation was furnished and accordingly made the following additions for the years under consideration: A.Y. Amount Rs. 1999-00 5,93,58,050 2003-04 53,94,662 2004-05 1,78,44,555 5. Being aggrieved, the assessee carried the matter in appeal before Ld. CIT(A) who also held that the assessee is a facilitator for accommod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity of India Ltd on behalf of certain parties, as spelt out by the AO in the body of the assessment order. The AO has treated such purchase of these demand drafts as those of the appellant. Even though, there is a clear indication that the appellant is a person instrumental in facilitating the cash deposited and issue of instruments, the allegation of the AO that the appellant was the real purchaser has been denied by the appellant in the first place. In the second place, It may be noted here that the transactions said to have been conducted through parties like Liladhar Petroleum, Veer Shaheed Petroleum, Shri Rang Petroleum Industries etc were recorded in their books, which was not disproved by the AO by cogent reasons. Initially, M/s D....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ins from such continuous and huge number of transactions. Even though the appellant appears to be earning commission on the cheques, drafts, pay orders etc issued to Indian Oil Corporation and Gas Authority of India Ltd, the commission received by him was not recorded in the books maintained by him. The fact that he is not recording the commission in his books cannot exonerate him in light of the material found by the AO, where in the finance companies concerned recorded his name as facilitator for issuance of cheques, drafts, pay orders etc. No body indulges in such a voluminous transaction for charity. The commission charged or received from the parties concerned has not been recorded for the obvious reasons that such transactions were in....