TaxTMI 
TaxTMI 
2017 (2) TMI 265
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....t year 2002-03 on the grounds inter alia that :- "1. On the facts and circumstances of the case and in law the CIT (A) was wrong and unjustified in confirming the addition of Rs. 28 lacs received from M/s Finorg Chemicals Ltd. on account of explained sale of shares. 2. On the facts and circumstances of the case and in law the CIT (A) was wrong and unjustified in confirming the addition of Rs. 1,07,000/- being an opening balance in the account of Kishan Chand Ferro Steels Ltd. 3. On the facts and circumstances of the case and in law the CIT (A) was wrong and unjustified in confirming the disallowance of expenses of Rs. 2,34,560/- on ad hoc basis ignoring the submissions made by the assessee." 2. Briefly stated the facts necessary....
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....f books of account with supporting vouchers, the AO disallowed the expenses to the extent of 30% i.e. Rs. 3,34,560/-. The confirmation in case of Kishan Chand Ferro Steel Pvt. Ltd. filed by the assessee to explain Rs. 1,07,000/- has been rejected by the AO for want of date and incomplete PAN and thereby made an addition of Rs. 1,07,000/-. AO assessed the taxable income of the assessee company at Rs. 91,67,138/-. 4. Assessee carried the matter before the ld. CIT (A) by way of filing the appeal who has partly allowed the appeal. Feeling aggrieved, the assessee has come up before the Tribunal by way of filing the present appeal. 5. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents r....
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....grounds is hereby allowed. GROUND NO.1 AND ADDITIONAL GROUNDS NO.1 & 2 : 8. AO made an addition of Rs. 28,00,000/- stated to have been received from M/s. Finorg Chemicals Ltd., which is one of the bogus companies being run for merely operating the entries/ transactions and were not in actual business. Sanjay Rastogi, Director of the assessee company categorically admitted in his statement recorded during survey proceedings conducted u/s 133A by the Investigation Wing of the Income-tax Department on 04.03.2003 that, "he was engaged in providing accommodation entries in various outside entities through the 8 companies floated by him for this purpose having registered office at Vakil Chamber, A-115, Shakarpur." 9. Assessee company is ....
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....of Sanjay Rastogi, we are of the considered view that the same cannot be taxed twice now by claiming the same from assessee company. 12. The contention of the ld. DR for the revenue that company is a juristic person and has to be taxed independent of its Director is not tenable in the face of admitted fact that the assessee company is a bogus company merely floated to provide accommodation entries and income in question has already been taxed in the hands of Mr. Sanjay Rastogi and this fact has already been admitted and considered by the revenue while taxing Sanjay Rastogi qua AY 1999-00 to 2003-04. Sanjay Rastogi has even paid the penalty imposed upon him on the basis of his assessed income qua M/s. Finorg Chemicals Ltd.. 13. Ld. AR ....