TaxTMI 
TaxTMI 
2017 (8) TMI 1434
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.... and partly allowed the appeal of the assessee. 3. While admitting the appeals, this court framed the following substantial questions of law:- Income Tax Appeal No.77/2008 admitted on 05.09.2008 "(i) Whether on the facts and circumstances of the case, the I.T.A.T. was right and justified in deleting the entire addition of Rs. 2,53,24,314/-, which was made by the A.O. on the ground of deposits made in the bank account No.11166 in Union Bank of India, Cotton Green Branch, Mumbai, when the same was not disclosed by the assessee in its books of accounts. (ii) Whether the I.T.A.T. was justified in treating the commission income @ 2% of Rs. 2,53,24,314/-, as income of the assessee and in deleting the entire addition of Rs.....
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....ntioned in the account opening from is of the assessee; (c) Account was open by passing a resolution of the Board of Directors in their meeting held on 18.09.1997; (d) The account was opened by both the Directors of the assessee's company viz. Shri Harish Bhatia and Shri Sanjay Bhatia; (e) Withdrawals from the bank account were through cheques signed by the Director, Shri Sanjay Bhatia, who had the authority to operate the bank account; (f) Transactions in this bank account were not disclosed in the regular books of accounts of the assessee's company (as per the statement dated 12.07.2004 and 09.02.1999 of Shri Sanjay Bhatia. 7. He contended in view of the paragraph 9, 10 & 11 of the order of assessing....
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....he transactions in this a/c are not one time transaction but a series of transactions spanning over a period of more than one & half year where three cheque books have been used one after the other. All the withdrawals made in this a/c are under the valid signature of the director of the company and therefore the deposits in the a/c can not be said to be without the knowledge or sanctity of its directors because without knowing the there was sufficient balance the assessee could not have issued the cheques. Assessee's plea that signed blank cheques were given to Mr. Thakkar, does not help the assessee's cause because it was not a one time transaction were assessee could be cheated by Mr. Thakkar. Without knowing the fate/use of earlier cheq....
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....s been given to various other buyers of the industial solvent and accommodation entries providers by assessing only a commission in their hands and cash premium in the hands of Mr. Mayur M Thakkar a different treatment cannot be given to the assessee. As mentioned, Vora Group has been assessed on commission income only and in case there could not have been any relation to carry out such transactions there was no purpose of finding the blank letter heads, authority letters, cheque books etc. along with blank Grs in the name of Mehta Bulk Carriers, address of which is given and printed on the Grs and on the bills is that of a Tailor and which is not in existence go to prove that all these transactions shown by Mr. Mayur M Thakkar are....
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....red by the assessing authority that the local address given is that of Mr. Mayur M Thakkar to the bank and the introducer of this account is Mr. Sunil Thakkar brother of Mr. Mayur M.Thakkar for which of course there could be same advantage only drawn by the present appellant which may be in the form of a commission as name lender and it will be different question that how much is to be considered as reasonable by the Tribunal.14. That the assessee had never been a consumer of organic composite solvent and also since Ram Remedies Pvt. Ltd. has never been refining NGL/naphtha as is evident from the accommodation entries provided by various other parties as mentioned in his assessment orders and NGL/naphtha being sold as it is. Under the circu....
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....h has been falsely denied by him that he is not in the knowledge of any such papers available at his residence or his premises which is a blatant lie to evade the tax in his hands and put whole of the burden on the assessee company and various other assessee/persons. All these issues have not been thoroughly considered and taken into consideration by the assessing authority and ld. CIT(A) and hence their orders are perverse and only reliance of one bank account which has been opened by the assessee company and various authority letters given to Mr. Mayur M. Thakkar cannot be the basis to draw an inference that whole of the income accrue and arise in the hands of the assessee company. This matter should further have been seen and considered ....