TaxTMI 
TaxTMI 
2018 (9) TMI 1626
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....d in law, the Ld. CIT(A) is correct in deleting the disallowance of artificial loss of Rs. 4,19,03,940/- made on account of fictitious transactions with M/s. Temptation Food Ltd., ignoring the fact that the director of assessee company had admitted in statement on oath that this was a fictitious loss. 2. "Whether on the facts and in law, the Ld. CIT(A) is correct in deleting the addition of Rs. 69,285/- made on account of commission earned for providing accommodation entries of sale to M/s Saraf Chemicals Ltd." 3. "The appellant prays that the order of the Ld. CIT(A) on the above grounds be set aside and that of the A.O. be restores." 4. "The appellant craves leave to add, amend or alter all or any of the grounds ....
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....1), a survey report was received from Addl.DIT (Inv.), Unit-IX, Mumbai in the case of M/s Highland Industries Ltd wherein a survey was conducted on 26.08.2013. During the course of survey, the statement of Shri Nimesh Thakore, Director of Highland Industries was recorded on 26.08.2013. In this, he accepted that he has received 0.05% as commission of the sales turnover given to one Saraf Chemicals Limited. 6. On the basis of such information and after due application of mind by the Assessing Officer, it was found that income earned form commission had escaped assessment. Hence, it was required to reassess the total income of the assessee. As such, notice u/s 148 of the Act was issued on 30.03.2014 and served on the assessee. After reopeni....
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....tality and not in piecemeal manner as contemplated by the A.O. It is also noted that on similar facts no addition has been made in the assessee's own case for preceding A.Y.2008-09 and succeeding A.Y. 2012-13. In view of this discussion the addition made by the A.O. of Rs. 4,19,73,225/- is found to be without much basis which cannot be sustained in appeal and is directed to be deleted. Further the A.O. has made addition of Rs. 69,825/- commission on sales turnover with Saraf Chemicals Ltd. In this regard the AR has submitted that this profit is already declared in the return and forms part of Rs. 36,83,989/- income declared in return of income. It is seen that there is merit in the submission of AR that once the income is already part o....
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....oup of companies in cash through their Broker. Alternativley, such difference in Profit/Loss was routed back to M/s Saraf Group of Companies in cash through the group concerns of Highland Industries namely Nimbus Industries Limited, Supreme Communications Limited, Hetu Investments and Trading etc which gave cheque payment to certain Hawala entities like Naman Enterprises, Bhakti Trading Co., Pooja Trading Co., Doshi Trading Co., S K Impex etc which subsquently withdrew equivalent cash amount and made payment to Saraf Group Companies. " 10. Thus, in his statement u/s 131 of the Act, the director of the assessee company has unequivocally admitted that he has been providing accommodation entries to Saraf Chemicals and earning a commission o....