TaxTMI 
TaxTMI 
2019 (1) TMI 344
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....ese appeals, the assessment years 2010-11 to 13-14 are taken as a separate group of cross appeals due to the reason that the assessments for these four assessment years were not pending as on the date of search and hence the objection raised by the assessee against the additions made by the AO is required to be considered separately for these four assessment years. For the purpose of recording the facts and grounds raised by the assessee as well as department, the appeal for the assessment year 2010-11 is taken as a lead case. 3. For the assessment year 2010-11 the assessee as well as the department have raised the following grounds :- Assessee's grounds : 1. On the facts and in the circumstances of the case and in law the order passed u/s 153A read with section 143(3) of the Income Tax Act 1961 is bad in law, void ab-initio, and deserves to be annulled as the assessment for the year under consideration was not abated as on the date of search and CIT (A) erred in holding that the contention of the assessee cannot be accepted in view of SLPs admitted in various cases. The ld. CIT (A) further erred in holding that the additions are to be adjudicated on merits as per relevant....
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....eived Amount Name of alleged entry operator whose statement were relied Jalsagar Commerce Pvt. Ltd. 12,36,49,999 Shri Anand Sharma 6. On the facts and in the circumstances of the case and in law the ld. CIT (A) erred in rejecting the theory of peak credit and erred in not allowing the benefit of telescoping, recycling and rotation of funds. 7. The assessee prays for leave to Add, to amend, to delete, or modify the all or any grounds of appeal on or before the hearing of appeal. Department's grounds : 1. Whether on the facts and circumstances of the case and in law, the CIT (A) was justified in deleting the addition of Rs. 12,36,40,000/- made by the AO u/s 68 of the IT Act on account of unexplained unsecured loans allegedly obtained by the assessee from M/s. Birla Arts Pvt. Ltd., M/s. Teac Consultant Pvt. Ltd. and M/s. Sangam Distributors Pvt. Ltd. 2. Whether on the facts and circumstances of the case and in law, the CIT (A) was justified in deleting the addition of unsecured loans by observing that the alleged lenders M/s. Birla Arts Pvt. Ltd., M/s. Teac Consultant Pvt. Ltd. and M/s. Sangam Distributors Pvt. Ltd. were not shell companies without consid....
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....., M/s. Prithvi Vinimay Pvt. Ltd. and M/s. Macro Soft Technology Pvt. Ltd. by observing that the burden casted upon u/s 68 of the IT Act to explain nature and source of the transaction had been discharged by the assessee. 8. Whether on the facts and circumstances of the case and in law, the CIT (A) was justified in deleting the addition of partner's capital despite the fact that alleged partners were never produced before the AO for examination. 9. Whether on the facts and circumstances of the case and in law, the CIT (A) was justified in ignoring the fact that business of the assessee firm is the business of the partners constituting it and the assessee firm is a mere "mutual agency" of the partners and therefore, mere filing of documentary evidences without producing the partners for verification was not sufficient for holding the partner's capital as genuine. 10. Whether on the facts and circumstances of the case and in law, the CIT (A) was justified in holding the partner's capital as genuine despite the fact that CIT (A) in the subsequent year on the basis of evidences available on record held M/s. Doshi Management Pvt. Ltd. a company in which 3 alleged partners namel....
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....sessee received unsecured loans and partners' capital from NBFC and other companies. 4.1. Before us, the ld. A/R of the assessee has submitted that in compliance to notice under section 153A of the IT Act, the assessee submitted its e-return of income on 9th March, 2016 declaring total income which was same for the assessment year 2010-11 though there were some variations in some of the assessment years. The assessee objected to the proposed addition on the ground that the said statement recorded by the department is behind the back of the assessee and, therefore, the same cannot be used against the assessee without giving opportunity of cross examination of the witnesses. Further it was contended since there is no incriminating material found during the course of search and seizure action, therefore, the AO is not empowered to make any addition in the total income of the assessee. It is a settled position of law that there cannot be a review under the garb of reassessment proceeding under section 153A of the Act and, therefore, the proposed reassessment proceedings are absolutely in abuse of process of law, illegal and bad in law. The provisions of section 153A cannot be applie....
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....lls Pvt. Ltd. (2016) 380 ITR 571 (Delhi) SLP filed before the Hon'ble Supreme Court was dismissed vide order dated 07.12.2015. 2. Principal CIT vs. Meeta Gutgutia (2017) 395 ITR 526 (Delhi) SLP filed before the Hon'ble Supreme Court was dismissed vide order dated 2nd July, 2018. 3. Jai Steel (India) vs. ACIT (2013) 219 Taxman 223 (Raj.) Thus the ld. A/R has submitted that the Hon'ble Jurisdictional High Court has held that the requirement of assessment or reassessment under section 153A has to be read in the context of section 132 or 132A of the IT Act, in as much as in case nothing incriminating is found on account of such search or requisition, then the question of reassessment of concluded assessment does not arise, which would require mere reiteration and it is only in the context of abated assessment under second proviso which is required to be assessed. The underlined purpose of making assessment of total income under section 153A of the Act is, therefore, to assess income which was not disclosed or would not have been disclosed. The assessment or reassessment proceedings which have already been completed and assessment orders have been passed determining the a....
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....ces it cannot be a case of addition made without any incriminating material but the AO was having sufficient material disclosing the undisclosed and unexplained cash credit introduced by the assessee in the garb of unsecured loans and partners' capital. Once the insurmountable evidences unearthed by the Investigation Wing Kolkata which is the basis of the additions made by the AO, the assessee was required to discharge its onus by producing the contrary evidence or by producing alleged creditors for verification. The ld. CIT D/R has further submitted that the information received from the Investigation Wing Kolkata is also the incriminating material found during the search and pertains to the assessee disclosing undisclosed income. Therefore, it is not a case of reassessment framed by the AO under section 153A without any incriminating material. The AO even conducted further investigation during the course of assessment proceedings through the Investigation Wing Kolkata and, therefore, the addition is fully based on the evidence in the possession of the AO. As per the provisions of section 132 read with section 153A of the IT Act, the AO has to assess or reassess the income of l....
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....e date of initiation of search under section 132 or making of requisition under section 132A of the Act. Therefore, the assessment under section 153A in respect of those assessment years which stand abated due to the reason of pending on the date of initiation of search or requisition shall be the original/first assessment. In the second category where the assessment or reassessment has already been completed on the date of initiation of search or making of requisition as the case may be, the assessment under section 153A would be in the nature of reassessment. The Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla while analyzing the provisions of section 153A read with section 132 of the Act has observed in para 37 and 38 as under :- "37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year ....
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....g material was unearthed during the search, no additions could have been made to the income already assessed." Thus the Hon'ble High Court has held that in the absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The Hon'ble High Court has also referred the term used in section 153A as "assess" which is relatable to abated proceedings and the word "reassess" related to completed assessment proceedings. Therefore, the completed assessments can be interfered with by the AO while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of document or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. The Hon'ble Delhi High Court has reiterated its view in case of Principal CIT vs. Kurele Paper Mills (supra) in para 1 to 3 as under :- "1. The Revenue has filed the appeal against an order dated 14.11.2014 passed by the Income Tax Appellate Tribunal (ITAT) in 3761/Del/2011 pertaining to the Assessment....
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.... the assessments for six previous years is found that the invocation of Section 153A qua each of the AYs would be justified. 57. The question whether unearthing of incriminating material relating to any one of the AYs could justify the re-opening of the assessment for all the earlier AYs was considered both in Anil Kumar Bhatia (supra) and Chetan Das Lachman Das (supra). Incidentally, both these decisions were discussed threadbare in the decision of this Court in Kabul Chawla(supra). As far as Anil Kumar Bhatia (supra) was concerned, the Court in paragraph 24 of that decision noted that "we are not concerned with a case where no incriminating material was found during the search conducted under Section 132 of the Act. We therefore express no opinion as to whether Section 153A can be invoked even under such situation". That question was, therefore, left open. As far as Chetan Das Lachman Das (supra) is concerned, in para 11 of the decision it was observed: "11. Section 153A (1) (b) provides for the assessment or reassessment of the total income of the six assessment years immediately preceding the assessment year relevant to the previous year in which the search took pla....
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....was held where undisclosed income or undisclosed property has been found as a consequence of the search, the same would also be taken into consideration while computing the total income under Section 153A of the Act. The Court then explained as under: "22. In the firm opinion of this Court from a plain reading of the provision along with the purpose and purport of the said provision, which is intricately linked with search and requisition under Sections 132 and 132A of the Act, it is apparent that: (a) the assessments or reassessments, which stand abated in terms of II proviso to Section 153A of the Act, the AO acts under his original jurisdiction, for which, assessments have to be made; (b) regarding other cases, the addition to the income that has already been assessed, the assessment will be made on the basis of incriminating material; and (c) in absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made." 34. The argument of the Revenue that the AO was free to disturb income de hors the incriminating material while making assessment under Section 153A of the Act was specifica....
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....ch shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the. aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs "in which both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material." v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The wo....
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.... and assess or reassess the same. Since the assessment under section 153A of the Act is linked with search and requisition under sections 132 and 132A of the Act, it is evident that the object of the section is to bring to tax the undisclosed income which is found during the course of or pursuant to the search or requisition. However, instead of the earlier regime of block assessment whereby, it was only the undisclosed income of the block period that was assessed, section 153A of the Act seeks to assess the total income for the assessment year, which is clear from the first proviso thereto which provides that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years. The second proviso makes the intention of the Legislature clear as the same provides that assessment or reassessment, if any, relating to the six assessment years referred to in the sub-section pending on the date of initiation of search under section 132 or requisition under section 132A, as the case may be, shall abate. Sub-section (2) of section 153A of the Act provides that if any proceeding or any order of assessment or reassessment....
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....terated, in case where pending assessments have abated, the Assessing Officer can pass assessment orders for each of the six years determining the total income of the assessee which would include income declared in the returns, if any, furnished by the assessee as well as undisclosed income, if any, unearthed during the search or requisition. In case where a pending reassessment under section 147 of the Act has abated, needless to state that the scope and ambit of the assessment would include any order which the Assessing Officer could have passed under section 147 of the Act as well as under section 153A of the Act. ** ** ** 19. On behalf of the appellant, it has been contended that if any incriminating material is found, notwithstanding that in relation to the year under consideration, no incriminating material is found, it would be permissible to make additions and disallowance in respect of an the six assessment years. In the opinion of this court, the said contention does not merit acceptance, inasmuch as. the assessment in respect of each of the six assessment years is a separate and distinct assessment. Under section 153A of the Act, assessment has to be....
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....ecision in Kabul Chawla (supra). The decision of this Court in Kurele Paper Mills (P.) Ltd. (supra) which was referred to in Kabul Chawla (supra) has been affirmed by the Supreme Court by the dismissal of the Revenue's SLP on 7th December, 2015. The decision in Dayawanti Gupta 64. That brings us to the decision in Smt. Dayawanti Gupta (supra). As rightly pointed out by Mr. Kaushik, learned counsel appearing for the Respondent, that there are several distinguishing features in that case which makes its ratio inapplicable to the facts of the present case. In the first place, the Assessees there were engaged in the business of Pan Masala and Gutkha etc. The answers given to questions posed to the Assessee in the course of search and survey proceedings in that case bring out the points of distinction. In the first place, it was stated that the statement recorded was under Section 132(4) and not under Section 133A. It was a statement by the Assessee himself. In response to question no. 7 whether all the purchases made by the family firms, were entered in the regular books of account, the answer was: "We and our family firms namely M/s. Assam Supari Traders and M/s.....
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....h deletions in ITA No. 306/2017. 68. In para 23 of the decision in Smt. Dayawanti Gupta (supra), it was observed as under: "23. This court is of opinion that the ITAT's findings do not reveal any fundamental error, calling for correction. The inferences drawn in respect of undeclared income were premised on the materials found as well as the statements recorded by the assessees. These additions therefore were not baseless. Given that the assessing authorities in such cases have to draw inferences, because of the nature of the materials - since they could be scanty (as one habitually concealing income or indulging in clandestine operations can hardly be expected to maintain meticulous books or records for long and in all probability be anxious to do away with such evidence at the shortest possibility) the element of guess work is to have some reasonable nexus with the statements recorded and documents seized. In tills case, the differences of opinion between the CIT (A) on the one hand and the AO and ITAT on the other cannot be the sole basis for disagreeing with what is essentially a factual surmise that is logical and plausible. These findings do not call for inter....
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....CIT (A) in para 7.2.1 of his order for AY 2004-05. As regards non-refundable security deposit, the CIT (A) accepted the AO's findings that treating the sum as 'goodwill written off on deferred basis' was not correct, hence the addition of Rs. 5,09,343 was held to be justified and correct. It was duly accounted for under 'liabilities' and transferred to income in a phased manner. This was not done by manipulating the account books of the Assessee as alleged by the Revenue. This would have been evident had the return been picked up for scrutiny under Section 143(3) of the Act. This, therefore, was not material which was subsequently unearthed during the search which was not already available to the AO. Consequently, the additions sought to be made by the AO on account of security deposits were rightly deleted by the CIT (A)." Thus the essential corollary of these decisions is that no addition can be made in the proceedings under section 153A in respect of the assessments which were completed prior to the date of search except based on some incriminating material unearthed during the search which was not already available to the AO. It is pertinent to note th....
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....47 and 148, have been removed by the non obstante clause with which sub-section (1) of Section 153A opens. The time-limit within which the notice under Section 148 can be issued, as provided in Section 149 has also been made inapplicable by the non obstante clause. Section 151 which requires sanction to be obtained by the Assessing Officer by issue of notice to reopen the assessment under Section 148 has also been excluded in a case covered by Section 153A. The time-limit prescribed for completion of an assessment or reassessment by Section 153 has also been done away with in a case covered by Section 153A. With all the stops having been pulled out, the Assessing Officer under Section 153A has been entrusted with the duty of bringing to tax the total income of an assessee whose case is covered by Section 153A, by even making reassessments without any fetters, if need be. 21. Now there can be cases where at the time when the search is initiated or requisition is made, the assessment or reassessment proceedings relating to any assessment year falling within the period of the six assessment years mentioned above, may be pending. In such a case, the second proviso to ....
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....ermined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income. In such a case, to reiterate, there is no question of any abatement of the earlier proceedings for the simple reason that no proceedings for assessment or reassessment were pending since they had already culminated in assessment or reassessment orders when the search was initiated or the requisition was made." (Emphasis supplied) 24. The said judgment also in no uncertain terms holds that the reassessment of the total income of the completed assessments have to be made taking note of the undisclosed income, if any, unearthed during the search and the income that escaped assessments are required to be clubbed together with the total income determined in the original assessment and assessed as the total income. The observations made in the judgment contrasting the provisions of determination of undisclosed income under Chapter XIVB with determination of total income under Sections 153A to 153C of the Act have to be read in the context of second proviso only, which deals with the pending assessment/reassessment proceedings. The further observatio....
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....not permit the Court to interpret the Second Proviso to Section 153A in a manner that where the assessment or reassessment proceedings are complete, and the matter is pending in appeal in the Tribunal, the entire proceedings will abate. 20. There is another aspect to the matter, namely that the abatement of any proceedings has serious causes and effect in as much as the abatement of the proceedings, takes away all the consequences that arise thereafter. In the present case after deducting bogus gifts in the regular assessment proceedings, the proceedings for penalty were drawn under Section 271(1)(c) of the Act. The material found in the search may be a ground for notice and assessment under Section 153A of the Act but that would not efface or terminate all the consequence, which has arisen out of the regular assessment or reassessment resulting into the demand or proceedings of penalty." (Emphasis supplied) The said judgment which essentially deals with second proviso to Section 153A of the Act also supports the conclusion, which we have reached hereinbefore. 28. It has been observed by the Hon'ble Supreme Court in K.P. Varghese v. ITO [1981] 131 ITR 597/7 Taxma....
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....ccounts as well as partners' capital received by the assessee are nothing but assessee's own unaccounted and undisclosed income routed back in the garb of unsecured loans and partners' capital. There is no dispute that these transactions of unsecured loans and partners' capital contribution are duly recorded in the books of accounts and disclosed in the return of income which were already completed as the assessments for these four assessment years were not pending on the date of search, therefore, it is manifest from the record that during the course of search and seizure under section 132 of the Act in the case of the assessee no material much less the incriminating material was unearthed or any undisclosed income which was not disclosed in the books of accounts was detected or found. The only incriminating material which was referred by the AO is pages 21 to 26 of Annexure AS-1 in respect of long term capital gain earned by Shri Rajendra Agarwal and his family members. The said long term capital gain was disclosed by Shri Rajendra Agarwal in his statement under section 132(4) and, therefore, it was surrendered and offered to tax by Shri Rajendra Agarwal and his family members in....
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.... it has been held that the law is well settled that the onus of proving the source of a sum of money found to have been received by an assessee, is on him. Where the nature and source thereof cannot be explained satisfactorily, it is open to the revenue to hold that it is the income of the assessee and no further burden is on the revenue to show that the income is from any particular source. It may also be pointed out that the burden of proof is fluid for the purposes of Section 68. Once assessee has submitted basic documents relating to identity, genuineness of transaction and creditworthiness then AO must do some inquiry to call for more details to invoke Section 68. b. The assessee firm has filed confirmation letters and this office has carried out further enquiry to examine the reality of the transactions. An enquiry was sent to the Investigation Directorate Kolkata and it has been established that these investor or lender Companies are controlled by the entry operators. The statements of various entry operators are sufficient evide4nces to show that the unsecured loan and partner's capital are assessee's own undisclosed income brought into the books of the as....
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....20,14,999/- Assessed income Rs. 70,02,98,459/- R/o Rs. 70,02,98,459/- The total income of the assessee in the status of Firm for Assessment Year 2010-11 relevant to Previous Year 2009-10 is assessed at Rs. 70,02,98,459/- u/s 153A read with section 143(3) of I.T. Act, 1961. The form ITNS-150 showing calculation of tax and interest chargeable, if any, is attached herewith and forms a part of this Order. A notice of demand u/s 156 of the Act and challan for payment of tax, if payable, is hereby issued. Penalty notice u/s 274 rws 271(1)(c) is issued separately." The entire finding of the AO is based on the information received from the Investigation Wing Kolkata and statement of Shri Anand Sharma. The ld. CIT (A) though has not disputed the legal proposition on this issue, however, the contention of the assessee was turned down merely on the ground that the SLPs filed by the revenue in the cases of Kabul Chawla (supra) and M/s. All Cargo Global Logistics (supra) etc. have been admitted for decision by the Hon'ble Supreme Court. The relevant part of the finding of the ld. CIT (A) in para 3.2.2 and 3.2.4 at pages 35 and 36 are as under :- "3.2.2 As per....
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....ing that the additions have been made by the AO on the basis of any incriminating material found during the course of search and seizure in the case of the assessee. The AO has solely relied upon the report of the Investigation Wing Kolkata and statement of one Shri Anand Sharma recorded by the Investigation Wing during the survey under section 133A of the Act. Therefore, even if the information/report of the Investigation Wing Kolkata is considered as a relevant evidence, the same cannot be regarded as incriminating material unearthed during the course of search and seizure under section 132 of the IT Act in case of the assessee. The requirement for making the addition under section 153A in the assessment years where the assessment was not pending on the date of search and the proceedings are in the nature of reassessment is essentially the incriminating material disclosing undisclosed income which was not disclosed by the assessee. In the case in hand, the AO himself has not claimed any incriminating material found during the search and seizure in the case of the assessee. Accordingly, in the facts and circumstances of the case and in view of the binding precedents on this issue ....
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....lying peak credit theory. The ld. A/R has submitted that the assessee has duly discharged its burden cast under section 68 of the Act by providing identity, creditworthiness and genuineness of the transactions. All the creditors have complied with the notices/summons issued by the AO/Department and also replied to the queries raised by the department. Therefore, the existence of all the companies was established when these companies have duly responded to the notices issued by the department. The assessee produced all relevant documentary evidences in support of the transactions which remained uncontroverted by the AO during the assessment or appellate proceedings. Therefore, the veracity of documentary evidence forming part of the assessment record is not doubted. The AO has relied upon statement recorded by the Investigation Wing Kolkata behind the back of the assessee and much before the date of search. The ld. A/R has submitted that the AO was having only one statement of Shri Anand Sharma who has stated that the accommodation entries were given to M/s. Jalsagar Commerce Pvt. Ltd. by M/s. Royal Crystal Dealers Pvt. Ltd. Therefore, even Shri Anand Sharma has nowhere stated that ....
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....eir ITR, Bank statement, Balance Sheets which proved the identity, creditworthiness and genuineness of the transaction. In support of his contention, he has relied upon the judgment of Hon'ble Jurisdictional High Court in case of Aravali Trading Co. vs. ITO, 8 DTR 199 (Raj.) and submitted that the Hon'ble High Court has held that once the existence of creditor is proved and such person owns the credit, the assessee's onus stand discharged and the assessee is not required to prove the source from which the creditor could have acquired the money deposited with him. Even otherwise, when the loan creditor was subjected to scrutiny assessment under section 143(3) wherein the transactions of loan were accepted by the AO then the creditworthiness of the loan creditor was also accepted. The ld. A/R has also referred to the availability of the funds with loan creditor being share capital which is much more than the loan given to the assessee. The AO has not found any discrepancy in the accounts of the loan creditor and particularly the bank statement of the loan creditor. Hence treating the transaction as bogus and in the nature of mere entry provided against the cash without any material i....
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....tion of principles of natural justice inasmuch as seized material is not provided to the assessee nor was permitted to cross examine a person on whose statement the AO relied upon, it would amount to deficiency and denial of natural justice. The ld. A/R has then referred to the decision of Hon'ble Bombay High Court in the case of H.R. Mehta vs. ACIT, 387 ITR 561 (Bombay). Thus the ld. A/R has submitted that once the assessee has already discharged its primary onus to prove the cash credit by furnishing relevant documents, substantiated identity, creditworthiness and genuineness of the transaction, then the burden is shifted on the AO to disprove the documents produced by the assessee in support of the claim. The AO has relied upon the statement of Shri Anand Sharma and no material was brought on record to controvert the documentary evidence filed by the assessee. Thus the ld. A/R has stated that the addition made by the AO and sustained by the ld. CIT (A) be deleted. 10. On the other hand, the ld. CIT D/R has submitted that the AO has received the information from Investigation Directorate, Kolkata regarding involvement of the assessee group in obtaining entries of bogus u....
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....ion is not made merely on the basis of report of the Investigation Wing Kolkata but the AO conducted enquiry through Investigation Wing and statements of entry operators were also recorded, therefore, overwhelming evidences in the possession of the AO indicate bogus nature of transaction of loan and partners' capital which has been extensively discussed in the assessment order. During the course of assessment proceedings, the assessee was provided a number of opportunities for producing the alleged creditors for verification and failure of the assessee in producing the creditors in the light of the evidences was enough to invoke the provisions of section 68 of the IT Act. The ld. D/R has further submitted that the repayment of loan for credit entries also does not in itself prove the transactions to be genuine. Shell companies are used to provide accommodation entries and even reversal of an entry does not ipso facto prove the genuineness of the initial credit entry. In support of his contention, he has relied upon the decision of Hon'ble Delhi High Court in the case of CIT vs. Navodaya Castles Pvt. Ltd., 226 Taxman 190 (Mag.) and submitted that the SLP filed by the assessee was di....
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....m cash in lieu of which cheques was given by him for some commission income. He also admitted that some paper companies have sold to beneficiary parties. Though, in the initial report dated 28.11.2017, M/s Jalsagar Commerce Pvt. Ltd. was treated a party in Rajasthan, in later report dated 06.12.2017 the entry operator Shri Anand Sharma was linked with M/s Jalsagar Commerce Pvt. Ltd. as per the data base prepared by Directorate of InvestigationKolkata The relevant part of the said statement as reproduced on page no.57 of the assessment order is as under: - 5.2 However, it is the submission of the Appellant that no notice under Section 131 or 133(6) of the Act was issued to this company, either by the Ld. AO or by the concerned AO or by the DDIT (Inv.) Kolkata. Also, on bare perusal of the assessment order, it is evident that the name of the said companies does not appear in the statement of any of the entry operators as reproduced by the AO in the Assessment Order. However, the relevant documents including the Ledger a/c showing the transactions with appellant company, Source sheet of funds of transactions made with the Appellant, Copy of bank statement showing the transactions, ....
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....ciple on adjudicating non-genuine unsecured loans raised through accommodation entry proviers, I place further reliance on few more case laws with underlining the similarity of adverse facts prevailing in the present case as follows:- 5.5 In case of Suman Gupta V/s. Income Tax Officer ITAT, Agra Bench (2012) 138 ITD 0153 held as under:- The AO discussed each and every creditor in the assessment order and the crux of the findings of the AO had been that there were very small bank balances in the bank accounts of the creditors and they were having meager income and as such, they were not men of means to advance any loan to the assessee. It is well settled law that burden is upon the assessee to prove ingredients of section 68 of the Act by proving identity and creditworthiness of the creditors and genuineness of the transactions. The assessee has, however, failed to prove the creditworthiness of the creditors who were having only meager income. No details of their savings have been filed. The assessee has never shown his willingness to produce the remaining creditors for examination before the AO. Therefore, the genuineness of the transaction could not have been ....
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....fore the Hon'ble Apex Court as reported in 2013-LL-0122-69 5.6 Hon'ble High Court of Delhi in case of Commissioner of Income Tax V/s. Navodaya Castles Pvt. Ltd. reported at (2014) 367 ITR 0306 involving exactly similar facts observed in Para 2, 3 then Para 2 as under:- 2. The appeal arises out of the impugned order dated 31st October, 2011, passed by the Income Tax Appellate Tribunal, upholding the order passed by the Commissioner of Income Tax (Appeals) deleting addition of Rs. 54,00,000/- made under Section 68 of the Income Tax Act, 1961 (Act, for short), by the Assessing Officer on account of share application. 3. The assessee, a company, had filed their return of income for the assessment year 2002-03 declaring loss of Rs. 1,58,035/- on 20th October, 2002, which was processed under Section 143(1) of the Act. Subsequently, on the basis of a report submitted by the Investigation Wing that the assessee was a recipient of accommodation entries in form of share application money/share capital/share premium, notice under Section 147 read with Section 148 of the Act was issued and served on 25th March, 2009....................................................................
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.... ........................................................................................................... 11. We have heard the Senior Standing counsel for the Revenue, who has relied upon decisions of the Delhi High Court in Commissioner of Income Tax Vs. Nova Promoters and Finlease (P) Ltd. [2012] 342 ITR 169 (Delhi), Commissioner of Income Tax Vs. N.R. Portfolio Pvt. Ltd., 206 (2014) DLT 97 (DB) (Del) and Commissioner of Income Tax-II Vs. MAF Academy P. Ltd., 206 (2014) DLT 277 (DB) (Del). The aforesaid decisions mentioned above refer to the earlier decisions of Delhi High Court in Commissioner of Income Tax Vs. Sophia Finance Ltd., [1994] 205 ITR 98 (FB)(Delhi), CIT Vs. Divine Leasing and Finance Limited [2008] 299 ITR 268 (Delhi) and observations of the Supreme Court in CIT Vs. Lovely Exports P. Ltd. [2008] 319 ITR (St.) 5 (SC). 12. The main submission of the learned counsel for the assessee is that once the assessee had been able to show that the share holder companies were duly incorporated by the Registrar of Companies, their identity stood established, genuineness of the transactions stood established as payments were made through accounts payee cheques/bank ac....
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....rty and rely on those recitals. If all that an assessee who wants to evade tax is to have some recitals made in a document either executed by him or executed in his favour then the door will be left wide open to evade tax. A little probing was sufficient in the present case to show that the apparent was not the real. The taxing authorities were not required to put on blinkers while looking at the documents produced before them. They were entitled to look into the surrounding circumstances to find out the reality of the recitals made in those documents." 15. Summarizing the legal position in Nova Promoters and Finlease (P) Ltd.(supra), and highlighting the legal effect of section 68 of the Act, the Division Bench has held as under:- "32. The tribunal also erred in law in holding Assessing Officer ought to have proved that the monies emanated from the coffers of the assessee-company and came back as share capital. Section 68 permits the Assessing Officer to add the credit appearing in the books of account of the assessee if the latter offers no explanation regarding the nature and source of the credit or the explanation offered is not satisfactory. It pl....
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....he coffers of the assessee, we are inclined to think that in the facts of the present case such proof has been brought out by the Assessing Officer. The statements of Mukesh Gupta and RajanJassal, the entry providers, explaining their modus operandi to help assessee's having unaccounted monies convert the same into accounted monies affords sufficient material on the basis of which the Assessing Officer can be said to have discharged the duty. The statements refer to the practice of taking cash and issuing cheques in the guise of subscription to share capital, for a consideration in the form of commission. As already pointed out, names of several companies which figured in the statements given by the above persons to the investigation wing also figured as share-applicants subscribing to the shares of the assessee-company. These constitute materials upon which one could reasonably come to the conclusion that the monies emanated from the coffers of the assessee-company. The Tribunal, apart from adopting an erroneous legal approach, also failed to keep in view the material that was relied upon by the Assessing Officer. The CIT (Appeals) also fell into the same error. If such material h....
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....." 17. Nova Promoters and Finlease (P) Ltd. (supra) after referring to the dismissal of SLP against Divine Leasing case (supra) observed as under:- "...............So understood, it will be seen that where the complete particulars of the share applicants such as their names and addresses, income tax file numbers, their creditworthiness, share application forms and share holders' register, share transfer register etc. are furnished to the Assessing Officer and the Assessing Officer has not conducted any enquiry into the same or has no material in his possession to show that those particulars are false and cannot be acted upon, then no addition can be made in the hands of the company under sec.68 and the remedy open to the revenue is to go after the share applicants in accordance with law. We are afraid that we cannot apply the ratio to a case, such as the present one, where the Assessing Officer is in possession of material that discredits and impeaches the particulars furnished by the assessee and also establishes the link between self-confessed "accommodation entry providers", whose business it is to help assessees bring into their books of account their unaccounted monies t....
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....eived money, but could do nothing more and it was for the Assessing Officer to enforce shareholders' attendance in spite of the fact that the shareholders were missing and not available. Their reluctance and hiding may reflect on the genuineness of the transaction and creditworthiness of the creditor. It would be also incorrect to universally state that an Inspector must be sent to verify the shareholders/subscribers at the available addresses, though this might be required in some cases. Similarly, it would be incorrect to state that the Assessing Officer should ascertain and get addresses from the Registrar of Companies' website or search for the addresses of shareholders themselves. Creditworthiness is not proved by showing issue and receipt of a cheque or by furnishing a copy of statement of bank account, when circumstances requires that there should be some more evidence of positive nature to show that the subscribers had made genuine investment or had, acted as angel investors after due diligence or for personal reasons. The final conclusion must be pragmatic and practical, which takes into account holistic view of the entire evidence including the difficulties, which the ....
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....dly relevant and material facts for ascertaining creditworthiness and genuineness of the transactions. 30. What we perceive and regard as correct position of law is that the court or tribunal should be convinced about the identity, creditworthiness and genuineness of the transaction. The onus to prove the three factum is on the assessee as the facts are within the assessee's knowledge. Mere production of incorporation details, PAN Nos. or the fact that thirdpersons or company had filed income tax details incase of a private limited company may not be sufficient when surrounding and attending facts predicate a cover up. These facts indicate and reflect proper paper work or documentation but genuineness, creditworthiness, identity are deeper and obtrusive. Companies no doubt are artificial or juristic persons but they are soulless and are dependent upon the individuals behind them who run and manage the said companies. It is the persons behind the company who take the decisions, controls and manage them." 20. Now, when we go to the order of the tribunal in the present case, we notice that the tribunal has merely reproduced the order of the Commissioner of Income Tax (Appe....
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....,000/- was infused from the Directors/family members of the Directors. The remaining share capital had been infused from parties which were completely unrelated either to the Assessee or to any of its Directors. In a private limited company, normally the investment of shares is from parties or persons who are friends or relatives of Promoters/Directors. 34. It is noticed that the shares had face value of Rs. 100 /- and were allotted at a premium of Rs. 100 /- to Rs. 200/- and were then subsequently purchased by the Promoters/Directors, who had originally transferred these shares at Rs. 35 /- per share. 35. It is really surprising that a person who had purchased shares at a premium of Rs. 100 /- to Rs. 200/- per share i.e. at a price of Rs. 200 /- to Rs. 300/- per share, sold the shares at Rs. 35 /- per share i.e at a substantial loss. Another surprising factor is that the entire investment happened during a short span of time and re-transfer of the shares to the four Promoters/Directors of the company at Rs. 35 /- per share by different parties also happened during a short span of few days. The modus operandi and the manner in which cash is deposited in a bank and then utiliz....
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.... of the share applicants and the genuineness of the transaction. Though, in our considered opinion, none of the above judgments, referred to by the Assessee respondent, are applicable in the facts of the present case and in view of the findings recorded by us hereinabove. 54. In view of the above, we are of the view that the Assessee has not discharged the onus satisfactorily and the additions made by the Assessing Officer were justified and sustainable. 5.9 Hon'ble Income Tax Appellate Tribunal Delhi Bench: 'B' in case of M/s. Amtrac Automotive India Pvt. Ltd. Versus ACIT, Circle 1(1), involving exactly similar facts in their appellate order ITA No.2920/Del/09 for A.Y. 2005-06 dated 31.12.2009 observed in Para 3 & then Para 2 as under:- 3. The assessee company is engaged in share trading in the year under consideration. In the course of scrutiny, the assessing officer noted that the appellant has introduced fresh share capital to the tune of Rs. 15,00,000/- at a share premium of Rs. 1,35,00,000/-......... ....................................................................................... 2.1 The AO asked the appellant to furnish details of such share holders me....
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....rther observed that the facts that the amount were paid by account payee cheques do not make it satisfactory as held in CIT vs. Precision finance Pvt. Ltd. 208 ITR 465 (Cal.). Even income -tax file particulars, where the share holder is assessed to tax is not sufficient as found in CIT vs. Korlay Trading Co. Ltd. 232 ITR 820 (Cal.) 2.1.2 The AO also referred the enquiry initiated by investigation wing of the Department in August 2003 which culminated into detection of many entry operators who are operating number of accounts in the same bank/branch or in different branches, in the names of companies, firms, proprietary concerns and individuals. For the operations of these bank accounts, filing income tax returns etc. persons are hired. Like any other business it does requires manpower according to the scale of operation. Except for two or three persons who are required regularly to visit banks and do other spade work like collection of cash etc., most of the other persons involved are on part time basis. The part time employees are called as and when required to sign documents, cheque books etc. Some of the entry operators have also roped in their own relatives for operation of ....
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....s could not prove existence or availability of the respective share applicants. When the identity of the person is required to be proved so as to examine whether in fact they have applied for allotment of shares, the existence itself is not proved. The existence of a person is not merely on paper. Particularly when the AO required the assessee to produce the share applicants and particularly when at the stated address the share applicants do not found to be existing, it cannot be said that the amount received by assessee is proved to be towards share capital. The transaction cannot be proved merely on paper. Neither before AO nor before Ld. CIT (A) the assessee could make the share applicants available. Therefore when the identity of the person itself is not proved, the amount received by assessee cannot be considered to be genuinely received. 6.1. It is also to be noted that the assessee company is stated to have issued shares at premium 9 times its face value. The assessee is a private limited company. It has not issued prospectus for issue of shares nor under the Companies Act 1956, it can invite the public to apply for and allot the shares. The company is prohibited from ....
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.... of the Shareholders Register, Shared Application Forms, Share Transfer Register etc. it would constitute acceptable proof or acceptable explanation by the assessee. (5) The Department would not be justified in drawing an adverse inference only because the creditor/subscriber fails or neglects to respond to its notices; (6) the onus would not stand discharged if the creditor/subscriber denies or repudiates the transaction set up by the assessee nor should the AO take such repudiation at face value and construe it, without more, against the assesee. (7) The Assessing Officer is duty-bound to investigate the creditworthiness of the creditor /subscriber the genuineness of the transaction and the veracity of the repudiation...." 26. In Divine Leasing (supra), on the question of burden of proof, the Court relied upon CIT v. Musaddilal Ram Bharose, (1987) 165 ITR 14, to hold that the initial burden is upon the Assessee to show the absence of fraud and this is not discharged by the Assessee tendering an incredible and fantastic explanation. The Court also held that every explanation given by the Assessee need not be accepted. 27. In Kamdhenu (supra), this Court categorically held th....
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....odation entry providers. The sum and substance of the said statement is that the concern M/s Jalsagar Commerce Pvt. Ltd. was engaged in the activities of providing accommodation entries and the appellant happened to be one of such beneficiary of such concern. It is also admitted fact that Shri Anand Sharma had been running the affair of the said company. v. The statement of Shri Anand Sharma in which name of M/s Jalsagar Commerce Pvt. Ltd. cannot be completely ignored solely on the legal grounds raised by the Appellant. 5.12 In view of above discussion, it is clear that the incriminating material had been found during the course of search of accommodation entry provider. Further incriminating material had been gathered by issuing commission to DDIT (Inv.) Kolkata, during the assessment proceedings and all such material have been shared with the appellant at least during the remand report proceeding. In view of nation-wide known scam by the accommodation entry providers of Kolkata and elsewhere burst by the Income Tax Department, there was no need to provide opportunity for cross-examination of same accommodation entry providers. Any way in the rejoinder submission to reman....
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....n by Shri Anand Sharma to the assessee through M/s.Royal Crystal Dealers Pvt. Ltd., then even if there is a possibility of bogus accommodation entry routed through another intermediary company M/s.Jalsagar Commerce Pvt. Ltd., it requires a definite link of the transactions from M/s.Royal Crystal Dealers Pvt. Ltd. to M/s.Jalsagar Commerce Pvt. Ltd. and then the loan to the assessee. Once the chain of transactions and flow of money from one entity to another entity and finally to the assessee has not been established, then the addition made merely on suspicion, how so strong it may be, is not sustainable. On the contrary, when the assessee produced all the relevant record which contains their financial statements, bank accounts statement of loan creditor, return of income, assessment orders framed under section 143(3), confirmation of the loan creditor, then a proper examination could have very well established the link, if any, in providing the accommodation entry from one entity to another and finally to the assessee. However, no such link was found in the documents and financial statements of these companies, rather in the bank account statement of loan creditor M/s. Jalsagar Comm....
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....hing but narration of the statements of various persons taken during the investigation. It is well settled principle as well as the directions of the CBDT issued under the Circulars that during the course of investigation, the department should concentrate and focus on collecting documentary evidence disclosing undisclosed income instead of obtaining the statement and then support of their claim merely on the basis of the statement. Therefore, the statements recorded by the DDIT Kolkata are also not based on any documentary evidence so as to have an evidentiary value for sustaining the additions made by the AO. The entire report of the Investigation Wing is based on statements recorded during survey and search. Once the assessee has produced the documentary evidence and particularly the financial statements of the loan creditors, their bank account statement, then in the absence of any discrepancy or fault in these financial statements or in the bank account statement to reflect that the transactions in question are nothing but bogus accommodation entries, the addition made by the AO is not sustainable as it is merely on the basis of surmises and conjectures and not on any tangible....
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....n account, then the addition cannot be made by treating the loan taken and repaid as bogus transaction. Apart from these facts, the assessee has also made the payment of interest which was also subjected to TDS. This shows the genuineness of the transactions and all these transactions have taken place prior to the date of search and duly recorded in the books of accounts and also subjected to assessment under section 143(3) for some of the assessment years. Therefore, even as per the evidence produced by the assessee, the alleged suspicion of the AO was got dispelled and in the absence of any contrary evidence except the statement which is not even a conclusive proof of transaction of bogus entry to the assessee, the additions made by the AO are not sustainable. 11.1. Even otherwise, the assessment order is solely based on the report of the Investigation Wing Kolkata which in turn is nothing but the narration of the statements recorded during the investigation and the AO was having in possession the statement of only Shri Anand Sharma. Therefore, all these proceedings conducted by the Investigation Wing Kolkata were at the back of the assessee and hence the statement which is th....
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.... order of the Commissioner was based upon the statements given by the aforesaid two witnesses. Even when the assessee disputed the correctness of the statements and wanted to cross-examine, the Adjudicating Authority did not grant this opportunity to the assessee. It would be pertinent to note that in the impugned order passed by the Adjudicating Authority he has specifically mentioned that such an opportunity was sought by the assessee. However, no such opportunity was granted and the aforesaid plea is not even dealt with by the Adjudicating Authority. As far as the Tribunal is concerned, we find that rejection of this plea is totally untenable. The Tribunal has simply stated that cross-examination of the said dealers could not have brought out any material which would not be in possession of the appellant themselves to explain as to why their ex-factory prices remain static. It was not for the Tribunal to have guess work as to for what purposes the appellant wanted to cross-examine those dealers and what extraction the appellant wanted from them". 7. As mentioned above, the appellant had contested the truthfulness of the statements of these two witnesses and wanted to discredi....
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....rder with the limited purpose of offering assessee an opportunity to cross-examine Shri Manoj Aggarwal before completing the proceedings." [Emphasis supplied] 6. A reading of the said paragraph (g) makes it clear that the revenue had accepted the findings of the Tribunal on facts as also the position that there had been a violation of principles of natural justice. However, the revenue's plea was that the violation of principles of natural justice was not fatal so as to jeopardize the entire proceedings. The said miscellaneous application was also rejected by the Tribunal by its order dated 28-11-2008. 7. In view of the foregoing circumstances, we feel that no interference with the impugned order is called for. The Tribunal has correctly understood the law and applied it to the facts of the case. Once there is a violation of the principles of natural justice inasmuch as seized material is not provided to an assessee nor is cross-examination of the person on whose statement the Assessing Officer relies upon, granted, then, such deficiencies would amount to a denial of opportunity and, consequently, would be fatal to the proceedings. Following approach adopted by us in SMC ....
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....ransaction and creditworthiness of the creditor. In the instant case by virtue of the fact that the transaction was completed by cheque payments, the appellant has contended that it had satisfied all the three tests. 13. In Kishanchand Chellaram (supra) wherein the Supreme Court observed that the revenue authorities had not recorded the statement of the Manager of the bank and it was difficult to appreciate as to why it was not done and why the matter was not probed further by the revenue. 14. The Delhi High Court in Ashwani Gupta (supra)held that once there is a violation of the principles of natural justice inasmuch as when its seized material was not provided to an assessee nor was he permitted to cross examine a person on whose statement the Assessing Officer relied, it would amount to deficiency, amounting to a denial of opportunity and therefore violation of principles of natural justice. In that case CIT (A) had deleted addition made by the Assessing Officer since the Assessing Officer had failed to provide copies of seized material to the assessee nor had he allowed the assessee to cross-examine the party concerned. The Division Bench held that once there is violation....
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....ermitting him to cross examine the deponents. Despite the request dated 15th February, 1996 seeking an opportunity to cross examine the deponent and furnish the assessee with copies of statement and disclose material, these were denied to him. In this view of the matter we are inclined to allow the appeal on this very issue." Thus the denial of opportunity to cross examine was considered by the Hon'ble High Court which goes to the root of the matter and strikes at the very foundation of the assessment and, therefore, renders the assessment order passed by the AO not sustainable. The ld. A/R has submitted that Coordinate Bench of this Tribunal in the case of DCIT vs. Shri Prateek Kothari vide order dated 16th December, 2012 in ITA No. 159/JP/2016 has considered this issue in para 2.8 to 2.11 as under :- "2.8 We have heard the rival contentions and perused the material available on record. The transaction under question relates to unsecured loans taken by the assessee amounting to Rs. 1 Crores from M/s Mehul Gems Pvt Ltd during the impunged assessment year and not accepting the said loan transaction as a genuine transaction by the Assessing officer and the resultant addition ma....
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.... mere paper transactions and in these circumstances, further as per the information name and address of assessee and the Benami Concern through which accommodation entry of unsecured loans was provided is appearing in the list of beneficiaries to whom the said Group has provided. This admission is sufficient to reject the contentions of the asseesse." Further, regarding cross examination, the AO stated that "the right of cross examination is not an absolute right and it depends upon the circumstances of each case and also on the statute concerned. In the present case, no such circumstances are warranted as in the list of beneficiaries to whom accommodation entries were provided by the said group categorically contains the name and address of the assessee. Further the group has categorically admitted to providing of accommodation entries of unsecured loans through various benami concerns." The AO further relied upon the decision of Hon'ble Supreme Court in the case of C. Vasantlal & Co. Vs. CIT 45 ITR 206(SC) and Hon'ble Rajasthan High Court in case of Rameshwarlal Mali vs. CIT 256 ITR 536(Raj.) among others. In this regard, it was submitted by the assessee that if the entries an....
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....it by the departmental representative. Next, it did not give any opportunity to the company to rebut the material furnished to it by him, and lastly, it declined to take all the material that the assessee wanted to produce in support of its case. The result is that the assessee had not had a fair hearing." The Hon'ble Supreme Court in case of C. Vasantlal & Co. Vs. CIT 45 ITR 206 (SC) has held that "the ITO is not bound by any technical rules of the law of evidence. It is open to him to collect material to facilitate assessment even by private enquiry. But, if he desires to use the material so collected, the assessee must be informed about the material and given adequate opportunity to explain it. The statements made by Praveen Jain and group were material on which the IT authorities could act provided the material was disclosed and the assessee had an opportunity to render their explanation in that regard." The Hon'ble Supreme Court in case of Kishinchand Chellaram v. CIT (1980) 125 ITR 713 (SC) (Copy at Case Law PB 585-591) has held that "whether there was any material evidence to justify the findings of the Tribunal that the amount of Rs. 1,07,350 said to have been remitte....
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....stant case, the assessment was completed by the AO relying solely on the information received from the investigation wing, statement recorded u/s 132(4) of Shri Bhanwarlal Jain and others, and various incriminating documentary evidence found from the search and seizure carried out by Investigation Wing, Mumbai on the Shri Bhanwarlal Jain group on 03.10.2013. It remains undisputed that the assessee was never provided copies of such incriminating documents and statements of Shri Bhanwarlal Jain and various persons and an opportunity to cross examine such persons though he specifically asked for such documents and cross examination. On the other hand, the burden was sought to be shifted on the ITA No. 159/JP/16 The ACIT, Central -2, Jaipur vs. M/s Prateek Kothari, Jaipur 21 assessee by the A.O. It is clear case where the principle of natural justice stand violated and the additions made under section 68 therefore are unsustainable in the eye of law and we hereby delete the same. The order of the ld CIT(A) is accordingly confirmed and the ground of the Revenue is dismissed." Thus when the assessee has specifically asked for cross examination of the witnesses whose statements were re....
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....on carried out by the Investigation Wing Kolkata, it was discovered that all these parties were engaged in providing accommodation entries of loans, partners' capital etc. He has relied upon the order of the AO. 14. On the other hand, the ld. A/R of the assessee has submitted that during the course of assessment proceedings the assessee submitted all the relevant supporting documentary evidences to prove the identity, creditworthiness and genuineness of the transactions in respect of the loans taken from M/s. Birla Arts Pvt. Ltd., M/s. Teac Consultant Pvt. Ltd and M/s. Sangam Distributors Pvt. Ltd. He has referred to the details of the documentary evidences produced in respect of these three companies as under :- 1. M/s Birla Arts Pvt. Ltd PB pages 1 Copy of Ack. of ITR of AY 2010-11 481 2 Copy of balance sheet of company and Annexure of loans & advances of AY 2010-11 482-483 3 Copy of relevant page of bank statement showing the entry of payment made to assessee. 484-492 4 Confirmation of loan given to assessee from books of accounts of party. 493-495 5 Confirmation of loan given to assessee from books of accounts of assessee. 496 ....
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.... amalgamation of other companies in this company. 652-678 8 Copy of balance sheet of company of 31.03.2010, 31.03.2011, 31.03.2012, 31.03.2013, 679-682 9 Copy of assessment order passed in the case of above named company for AY 2006-07,AY 2007-08, AY 2013-14, AY 2014-15 683-698 10 Copy of ROC master data. 699 11 Copy of PAN card. 700 12 Copy of Summon no 1755 dated 06/10/2017 issued by DCIT Kota, Central Circle u/s 13(1) of Income Tax Act, 1961. 701 13 Copy of reply dated 06-10-2017 & 13-11-2017 submitted by company in response to notice/summon issued to it alongwith dispatched proof. 702-703 The ld. A/R has thus submitted that all the loans were received through bank and verifiable from the bank statements of the assessee as well as bank statements of the creditors. The onus under section 68 of the IT Act to prove the identity, capacity and genuineness of the transactions has been discharged by the assessee by producing all the relevant documentary evidences. Further, the assessee also produced the assessment orders passed under section 143(3) of the IT Act in the case of the creditors. Thus the department has not d....
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....o substantiate that these companies are controlled by so called entry operators. The relevant finding of the ld. CIT (A) in para 6.1 to 6.14 are as under : 6.1 As discussed in para 4.4.8 above, in respect of these three lenders namely M/s Birla Arts Private Limited, M/s Teac Consultants Private Limited and M/s Sangam Distributors Private Limited adverse findings alongwith eloquent evidences in the form of statement on oath of relevant entry operators are not visible in the reports dated 28.11.2017 and 06.12.2017 from Investigation Directorate, Kolkata and therefore it could not be treated as shell company. 6.2 Now, coming to the loan from M/s Birla Arts Private Limited no notice under Section 131 or 133(6) of the Act was issued to this company, either by the AO or by the concerned AO or by the DDIT (Inv.) Kolkata. This shows that no independent enquiry was done by the AO to establish that the said companies were shell companies, blind reliance has been placed by the AO on the investigation report of the DDIT, Kolkata. Also, on bare perusal of the assessment order, it is evident that the name of the said companies does not appear in the statement of any of the entry operators ....
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.... to Rs. 12,36,40,000/- is unjustified; firstly, on the ground that no inquiries were made to rebut the evidences filed by the Appellant and secondly, on the ground that Appellant duly discharged its burden casted upon u/s 68 of the Act to explain nature and source of the transactions by proving the identity, creditworthiness of creditor and genuineness of the transaction. In particular, none of the material or statements have been provided in the Assessment Order wherein names of the said companies are mentioned. Notably, the transactions with the said four companies are duly verifiable from confirmation of accounts placed at page no. 453 to 455, 532 to 534 & 588 to 589 of PB with supporting bank statements placed at page no. 444 to 452, 521 to 531 & 571 to 587 PB and have been carried out through banking channels only and thus, appellant has duly proved the identity, creditworthiness and genuineness of the transactions. 6.5 Furthermore, from the perusal of documentary evidences submitted by the Appellant, it is seen that transactions have been done through banking channels and on the date of making of loans, there is balance available in the accounts of the borrowers, which pro....
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....he lender, therefore reflection of such entries in bank statement doesn't lead to draw any adverse inference against the Appellant. Needless to say that Appellant is not required to prove source of the source u/s 68 of the Act in view of the settled judicial precedents. 6.8 In my considered view, mere not believing an explanation cannot lead to a conclusion that the borrowed amount is the income of the assessee (borrower) from some undisclosed sources while in the present case, no evidences of any generation of undisclosed income or their utilization in the form of unsecured loans has been found and brought on record. 6.9 Similarly, I find that various observations of the AO on balance sheet / ITR of the lender companies are misconstrued, misconceived and are factually incorrect. I further find that the various other allegations / observations of the AO are misconceived and premature only and in view the appellant's submission made in para 10 as reproduced in Para No. 4.2 of this order, the same does not lead any where to draw any adverse inference against the Appellant. Further, the various case laws relied upon by the AO are distinguishable from the facts of the present cas....
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.... also produced before the AO. Thus, in view of the judicial precedents referred above, under the facts and circumstances of the present case it is untenable to make any addition for alleged non98 appearance by the concerned person before the authorities though they complied with the notices/summon issued to them. 6.12 In the present case in hand, I find that AO asked Assessee to produce lender companies without verifying the facts of lending money from respective jurisdiction assessing officer and without verifying their returns of income and balance sheet wherein these transactions are reported, accordingly the AO has not followed the principles laid down under section 68 of the Act. The Hon'ble Gujrat High Court in the case of Commissioner of Income-tax v. Ranchhod Jivabhai Nakhava [2012] 21 taxmann.com 159 (Guj.) has held that:- Once the assessee has established that he has taken money by way of account payee cheques from the lenders who are all income tax assessees whose PAN have been disclosed, the initial burden under section 68 was discharged. It further appears that the assessee had also produced confirmation letters given by those lenders. [Para 15] On....
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....ors and controlling these companies so as to establish that the transactions are in the nature of bogus accommodation entries. We have already considered the issue on merits in respect of the addition made on account of unsecured loans taken from M/s. Jalsagar Commerce Pvt. Ltd. whereas the loans taken from these companies are even as per the revenue on better footings of genuineness than M/s. Jalsagar Commerce Pvt. Ltd. There is no dispute that the AO was not having any evidence or even any statement to impugn the transactions as bogus accommodation entries. Further, the assessee has produced all the relevant supporting documentary evidence as we have reproduced in the foregoing paras as referred by the ld. A/R of the assessee and these creditor companies were subject to regular assessments and scrutiny assessments under section 143(3) were completed by the department as per the details reproduced. Therefore, once these creditor companies are regularly assessed to tax and duly examined by the department at the scrutiny assessments, then the transactions of loans cannot be held as bogus when the same were accepted in the hands of the creditors. We further note that these comp....
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....t of partners' capital received from four parties was deleted by the ld. CIT (A) on the similar ground that the AO was not having any evidence or material to establish that the transactions are bogus accommodation entries. 16. The assessee firm was having corporate partners, namely, M/s. Banshidhar Advisory Pvt. Ltd., M/s. Vasundhara Advisory Pvt. Ltd., M/s. Prithvi Vinimay Pvt. Ltd. and M/s. Macro Soft Technology Pvt. Ltd. The aforesaid corporate partners of the assessee introduced capital in the assessee firm to the tune of Rs. 42,47,25,000/-. While passing the assessment order, the AO made the addition of the said amount under section 68 of the IT Act treating the same as unexplained cash credit. The finding and the reasoning of the AO is identical as in respect of the unsecured loans taken by the assessee. The ld. CIT (A) deleted the said addition on the identical reasoning as given for deletion of addition on account of unsecured loans taken from the three companies, namely, M/s. Birla Arts Pvt. Ltd., M/s. Teac Consultant Pvt. Ltd and M/s. Sangam Distributors Pvt. Ltd. Thus the ld. CIT (A) has considered the relevant facts as well as the documentary evidence produced by ....
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....e. 846-847 3 ^* Copy of Balance sheet of AY 2010-11 848-855 4 ^* Confirmation of a/c of the assessee from books of accounts of partner. 856-859 5 ^* Copies of relevant bank a/c of partner showing the entries of payment made to assessee against capital introduce. 860-872 6 ^* Copy of affidavit executed by Mr. Ravi Mundra director of Doshi Management Pvt. Ltd on behalf of amalgamated Company M/s Vasundhara Advisory Pvt Ltd, 873-875 7 ^* Copy of order of Calcutta High Court regarding amalgamation of company in Doshi Management Pvt. Ltd 876-900 8 ^* Copy of balance sheet of company of 31.03.2010, 31.03.2011, 31.03.2012 and 31.03.2013. 901-904 9 ^* Copy of assessment order passed in the case of above named company for AY 2014-15. 905-908 10 ^* Copy of ROC master data. 909 11 ^* Copy of certificate dated 06.11.2011 issued by registrar of companies regarding modification of charges/mortgage. 910 12 ^* Copy of PAN card. 911 13 ^* Copy of Summon No. 1439 dated 13.10.2017 and reminder notice No. 1579 dated 31.10.2017 issued by DDIT (Investigation), Unit-1(3), Kolkata u/s 131 of Income Tax Act, ....
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.... 31.03.2011, 31.03.2012, 31.03.2013, 31.03.2014, 31.03.2015 and 31.03.2016. 1038-1044 36 ^* Copy of assessment order passed in the case of above named company for AY 2009-10, 2011-12, AY 2012-13 and 2014-15. 1045-1064 37 ^* Copy of ROC master data. 1065-1066 38 ^* Copy of certificate dated 06.11.2011 issued by registrar of companies regarding modification of charges/mortgage. 1067 39 ^* Copy of PAN card. 1068 40 ^* Copy of notice No. 1604 dated 21.09.2017 issued by DCIT, CC, Kota u/s 131 of Income Tax Act, 1961. 1069 41 ^* Copy of Reply of Notice submitted by the company 1070 42 ^* Copy of Summon No. 2115 dated 31.10.2017 issued by DCIT, CC, Kota u/s 131 of Income Tax Act, 1961. 1071 43 ^* Copy of Reply of Notice submitted by the company on 13.11.2017 and 23.11.2017. 1072-1074 M/s Banshidhar Advisory Pvt. Ltd 44 ^* Copy of ledger a/c of partner from books of accounts of assessee. 1075-1077 45 ^* Copy of Ack. of ITR of AY 2010-11 and computation of total income. 1078-1079 46 ^* Copy of Balance sheet of AY 2010-11 1080-1089 47 ^* Confirmation of a/c of the assessee....
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...."Active" and three of which, namely, M/s. Banshidhar Advisory Pvt. Ltd., M/s.Prithvi Vinimay Pvt. Ltd. and M/s. Vasundhara Advisory Pvt. Ltd. status was shown as "Amalgamated". Therefore, these companies have already under gone process of amalgamation through the approval of the Hon'ble High Court. Hence, there cannot be any dispute about the identity and the affairs of these companies as genuine. The assessee also produced the records about the availability of the funds with these four companies which were sufficient to introduce the partners' capital. The details of the source of funds of these four companies as submitted by the assessee are as under :- M/s Vasundhra Advisory Pvt. Ltd. Assessment Year Financial Year Share capital raised 2006-07 2005-06 5,76,00,000 2010-11 2009-10 6,61,50,000 2011-12 2010-11 5,43,50,000 2014-15 2013-14 10,82,35,000 M/s Prithvi Vinimay Pvt. Ltd Assessment Year Financial Year Share capital raised 2005-06 2004-05 1,51,00,000 2006-07 2005-06 4,68,20,000 2007-08 2006-07 2,72,20,000 2010-11 2009-10 7,84,00,000 2011-12 2010-11 1,96,00,000....
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....rivate Limited, M/s Prithvi Vinimay Private Limited and M/s Macro Soft Technology Private Limited. The same is evident from the respective details for above lenders in the above reports dated 28.11.2017 and 06.12.2017 as under:- "With reference to your above quoted letter, this office has issued Summon notices u/s 131 of the Income Tax Act, 1961 dated 13.10.2017 to the following sixteen (16) companies based in Kolkata as mentioned in your above quoted letter requesting to furnish the requisite details related to share application money/share premium/special deposits/unsecured loan/capital introduced by partners or any transactions made with group concerns of the KDM Group for the period from F.Y. 2009-10 to 2015-16 within 05 (five) days of receipt of Summon Notices. As regards 5 (five) assesses, Summons notices u/s 131 of the Income tax Act, 1961 has not been issued since it is observed that the present address of five (5) companies is located either in Rajasthan or Patiala. ............. In response to said both notices dated 13.10.2017 & 31.10.2017, none of the directors appeared personally but the following companies have submitted their reply containing various details by....
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....l companies controlled & managed by entry operators and the same is being produced as under in the tabular form: SL. NO. NAME OF CONCERNS PAN ADDRESS GIVEN IN COMMISSION NOTICE ISSUED ENTRY OPERATO R DUMMY DIRECTOR 1 BANSIDHAR ADVISORY PVT LTD (AMALGAMATED WITH DOSHI MANAGEMENT PVT LTD) AACCB7815M 11A ESPLANADE EAST 3^RD FLOOR, KOLKATA - 700069 NOTICE ISSUED U/S 131 AT GIVEN ADDRESS This company is amalgamate dwith M/s Doshi Management Pvt Ltd which has been identified as paper/shell company controlled & managed by entry operator Anand Sharma SHASHI KUMARI RAMANI- The name of these dummy directors are listed in database, who worked/works under different entry operators for different period, the details of which has been given below in tabular form. 1 VASUNDHARA ADVISORY PVT LTD (AMALGAMATED WITH DOSHI MANAGEMENT PVT LTD) AACCV1837B 11A ESPLANADE EAST 3^RD FLOOR, KOLKATA - 700069 NOTICE ISSUED U/S 131 AT GIVEN ADDRESS This company is amalgamate dwith M/s Doshi Managemen t Pvt Ltd which has been identified as paper/shell company controlled & managed by entry operator Anand Sharma PUNAM RAMANI - The name of these dummy dir....
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....ements indentifying M/s Doshi Management Pvt. Ltd. Is available on record, though it is included in the report of DDIT (Inv.), Unit 1(3), Kolkatta. Therefore, the lable of paper/shell company cannot be applied to M/s Bansidhar Advisory Private Limited, M/s Vasundhara Advisory Private Limited, M/s Prithvi Vinimay Private Limited as at the relevant time they were not part of M/s Doshi Management Pvt Ltd. Moreover, in data base of directorships for these companies; M/s Bansidhar Advisory Private Limited, M/s Vasundhara Advisory Private Limited, M/s Prithvi Vinimay Private Limited as reproduce above also clearly show no direct controle or influence of the alleged entry operator Anand Sharma. Similarly, the statement of Ankit Bagri is not implicating M/s Bansidhar Advisory Pvt. Ltd. in any manner as Shell Company. There are no statements from Nawal Kishore Jalan and Pankaj Agarwal on record implicating M/s Vasundhara Advisory Private Limited, M/s Prithvi Vinimay Private Limited as shell companies. 7.3.1 In view of above ground reality I am treating M/s Bansidhar Advisory Private Limited, M/s Vasundhara Advisory Private Limited, M/s Prithvi Vinimay Private Limited not as shell company....
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.... treated as genuine. Thus, once in the completed assessment proceedings the capital contribution of those companies has been considered as genuine than there is no reason to treat the capital received from such companies during the year as non genuine without having any material and only on presumption, assumption and surmises. d) Submission made in Ground No. 2 in respect of unsecured loans may also be treated as a submissions for the purpose of this ground of appeal. e) All the partners must be working partners is not mandatory under any of the laws in force. f) All the transactions were done through proper banking channels. g) The notices issued to the four companies u/s 131/133(6) of the Act were duly complied with along with the copy of the relevant documents. h) Affidavits of the directors of all companies were submitted wherein the Directors confirmed their investment as partner's capital in the Appellant Firm. i) No reliance can be placed on rejected books of account for working out peak credit for the purpose of making additions in the hands of the appellant. j) The reports/inspection report and statements relied upon by the AO were not provided to the....
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..... Therefore, in the absence of any independent inquiry and any adverse findings to rebut the evidences filed by the Appellant, I find that the addition in respect of the partner's capital from the aforesaid 04 companies totaling to Rs. 42,47,25,000/- is unjustified; firstly, on the ground that no inquiries were made to rebut the evidences filed by the Appellant and secondly, on the ground that Appellant duly discharged its burden casted upon u/s 68 of the Act to explain nature and source of the transactions by proving the identity, creditworthiness of the corporate partners and genuineness of the transaction. Notably, the transactions with the said four companies are duly verifiable from confirmation of accounts filed at page 650 to 653, 708 to711, 763 to 766 & 830 to 832 of PB with supporting bank statements placed at page 654 to 660, 712 to716, 767 to 778 & 833 to 838 of PB and have been carried out through banking channels only and thus, appellant has duly proved the identity, creditworthiness and genuineness of the transactions. 7.3.7 Furthermore, from the perusal of documentary evidences submitted by the Appellant, it is seen that transactions have been done through banking....
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....on made in the report which is nothing but narration of the statements recorded of certain persons. The report of the DDIT Investigation cannot substitute the documentary evidence. Accordingly, in view of the facts and circumstances, we do not find any error or illegality in the order of the ld. CIT (A) qua this issue. 20. Since we have deleted the addition made by the AO, therefore, ground no. 6 raised by the assessee becomes infructuous and does not require any adjudication. 21. For the assessment years 2011-12 to 14-15, except the quantum of unsecured loans and capital introduced by the corporate partners, all facts remain same on the merits of the issues. Even the parties who have given the unsecured loans are also identical. The ld. CIT (A) has also decided the issues by confirming the part addition and deleting the part on the basis of bifurcation of these parties on identical lines as for the assessment year 2010-11. The ld. A/R as well as the ld. CIT D/R have fairly agreed that the issues are identical as the basis and grounds of addition made by the AO as well as orders passed by the ld. CIT (A) in all these appeals are identical and same, except the minor variati....
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.... years. 23. For the assessment year 2015-16 only, the ld. CIT (A) has sustained the addition in respect of only one party i.e. M/s. Capline Dealcome Pvt. Ltd. whereas for the assessment year 2016-17, the ld. CIT (A) has confirmed the addition on account of unsecured loans in respect of two parties, namely, M/s. Kapline Dealcome Pvt. Ltd. and M/s. VSG Leasing & Finance Co. Pvt. Ltd. The assessee has shown unsecured loans from M/s. Capline Dealcome Pvt. Ltd. of Rs. 1.50 crores and M/s. VSG Leasing & Finance Co. Pvt. Ltd. of Rs. 10,88,45,000/-. The AO has supported his finding in the assessment order by the statements of Shri Ankit Bagri and Shri Shiv Shankar Banka. On appeal, the ld. CIT (A) has confirmed the additions on account of unsecured loans from these parties by rejecting the contention of the assessee of cross examination. 24. Before us, the ld. A/R of the assessee has submitted that the assessee specifically demanded the cross examination of these witnesses whose statements have been relied upon by the AO and those statements were recorded by the Investigation Wing Kolkata at the back of the assessee. Despite the repeated requests before the AO as well as before the l....
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....d ignorance is mere pretence. ii. Moreover, such statements are so vocal and undeniable that as mentioned in some of the case laws above, crossexamination of such accommodation entry provides by thousands of beneficiaries across India is neither practicable nor viable and therefore uncalled for. iii. It is undisputed fact that in the statement dated 03.07.2014 Shri Ankit Bagri and Shri Shankar BAnka had admitted to be one of such accommodation entry providers. The sum and substance of the said statement is that the concern M/s Caplin Dealcomm Private Limited, M/s VSG Leasing and Finance Co. Ltd. was engaged in the activities of providing accommodation entries and the appellant happened to be one of such beneficiary of such concern. It is also admitted fact that these operators had been running the affair of the said company. v. The statement of Shri Ankit Bagri and Shri Shankar Bank in which name of M/s Caplin Dealcomm Private Limited and M/s VSG Leasing and Finance Co. Ltd. respectively appeared, cannot be completely ignored solely on the legal grounds raised by the Appellant. 3.13 In view of above discussion, it is clear that the incriminating materi....
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....ake of completeness, we refer to the documentary evidence produced by the assessee in respect of these two companies as under :- S. No. Particulars PB Page No. 1. M/s Caplin Dealcomm Pvt. Ltd. ^* Copy of Ack. of ITR of AY 2016-17 987 ^* Copy of Balance sheet of AY 2016-17 988 ^* Copy of relevant page of bank statement showing the entry of payment made to assessee. 989-1008 ^* Confirmation of loan given to assessee from books of accounts of party. 1009-1011 ^* Confirmation of loan given to assessee from books of accounts of assessee. 1012-1013 ^* Copy of affidavit of Kavita Jain director of company. 1014-1017 ^* Order passed by Calcutta High Court regarding amalgamation of other companies in this company 1018-1039 ^* Copy of balance sheet of company of 31.03.2010, 31.03.2011, 31.03.2012, 31.03.2013, 31.03.2014, 31.03.2015 and 31.03.2016. 1040-1046 ^* Copy of assessment order passed in the case of above named company for AY 2006-07, 2008-09, 2009-10, 2010-11 and 2014-15. 1047-1070 ^* Copy of ROC master data. 1071-1072 ^* Copy of NBFC Certificate. 1073 ^* Copy of PAN card. 1074 ^* Copy ....
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....ssessment year 2010-11, the additions made by the AO are not sustainable and the same are deleted. This issue covers both the assessment years 2015-16 and 16-17. The assessee has also raised Ground No. 5 regarding typographical error in the finding of the AO/CIT (A) on account of late delivery charges of Rs. 12 lacs. 28. The assessee is carrying on the business of supply of energy food to Government Departments under the contract. The assessee was to supply supplementary nutrition food under ICDS Scheme to Women and Child Development of Government of Rajasthan and Government of Gujarat. The government departments made certain deductions from the payments on account of late delivery of products as provided under the terms and conditions of the contract. The assessee claimed deduction of disallowance made by the Government under section 37 of the Act. The AO disallowed the claim of deduction by treating the same as penal in nature. On appeal, the ld. CIT (A) has allowed the claim of the assessee. However, the amount of disallowance made by the AO which was deleted by the ld. CIT (A) was mistakenly mentioned as Rs. 4,11,08,334/- as against the total disallowance made by the A....
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....same is reproduced as under :- " 7.1. As discussed in the Assessment order at page no. 2-3, AO disallowed the expenditure of Rs. 4,23,19,238/- holding that these charges are in violation of the law and thus penalty in nature. Accordingly, he disallowed late delivery charges of Rs. 5,90,515/- deducted by the WCD Department, Rajasthan, late delivery charges of Rs. 4,47,877/- deducted by the WCD Department, Jharkhand and late delivery charges of Rs. 4,12,80,846/- deducted by the WCD Department." Therefore, it is apparent that there is a mistake in the amount recorded by the ld. CIT (A) while giving the finding in para 7.3.3. Accordingly, we modify the said part of the order of the ld. CIT (A) and disallowance made by the AO of Rs. 4,23,19,238/- is deleted. 30. In the Revenue's cross appeal the issue on account of unsecured loans from two partners, namely, M/s. Competent Securities and M/s. Intellectual Builders for the assessment years 2015-16 and 16-17 were deleted by the ld. CIT (A) on the ground that the AO has not brought any material or documentary evidence to establish that the transactions are bogus accommodation entries as there was no statement of any person of al....
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.... consideration declared at 4.29% and that too when there is a 242% increase in the turnover for the year under consideration in comparison to the earlier year. Further, the AO has made a lump sum addition without any basis or any proper and reasonable criteria. In support of his contention, the ld. A/R has relied upon the decision of Hon'ble Supreme Court in case of Dhakeswari Cotton Mills Ltd. vs. CIT, 26 ITR 775 (SC) as well as decision of Hon'ble Jurisdictional High Court in case of Malani Ramjivan Jagannath vs. ACIT, 316 ITR 120 (Raj.). The ld. A/R has also referred a series of decisions on the point. 35. We have considered the rival submissions as well as the relevant material on record. The AO has rejected the books of accounts for the assessment year 2011-12 on the ground that the assessee has not maintained the quantitative details of day to day stock. The AO, thereafter, made a lump sum addition of Rs. 20 lacs. It is pertinent to note that even if the books of accounts are rejected by invoking the provisions of section 145(3), it would not ipso facto result in addition to the total income of the assessee. After rejection of books of accounts, the AO is bound to estimate....
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....und any discrepancy in the opening stock, purchases and closing stock of the assessee, then merely because the assessee has not maintained the day to day details of the movement of the stock due to the large quantity and numerous entries of raw material and finished goods cannot be a basis for rejection of books of accounts. The Hon'ble Jurisdictional High Court in the case of Malani Ramjivan Jagannath vs. ACIT (supra) has held in para 10 & 11 as under :- "10. In the face of these undisputed facts and circumstances, the Tribunal in our opinion could not have interfered with the order of CIT(A). In doing so, it had ignored all admitted facts noticed by us above, in the face of which there was no occasion for the Assessing Officer to have resorted to estimate method. The GP is primarily result of excess of sales over purchases, opening stock, closing stock, the unsold stock at two terminals is only balancing factor. Admittedly out of this four components of trading result, there could not have been any ground for the Revenue to arrive at different result. So far as closing stock is concerned, inventories of existing stock were not found to be incorrect by the Assessing Offic....
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....ring the same facts, therefore, our finding for the assessment year 2011-12 is applicable on this issue for the assessment years 2013-14 to 16-17 also. 37. In the result, appeals of the assessee are allowed and appeals of the revenue are dismissed. Order is pronounced in the open court on 31/12/2018. ============= Document 1 provided to Aradhana Estate Pvt Ltd. In the ontire process the beneficiary party gave me cash in lieu of which I gave them cheque for some commission income. Some paper companies have been sold to beneficiary parties. A total of Rs. 54.48 Crores respectively have been given as accommodation entry. Pages 72 and 73 consist of lodger copy of Rajgharana Vyapaar Pvt Ltd through which bogus / accommodation share application money has been provided to Apeksha Securities Ltd. In the entire process the beneficiary party gave me cash in lieu of which I gave them cheque for some commission income. Some paper companies have been sold to beneficiary parties. A total of Rs . 31.31 Crores have been given as accommodation entry. Page 71 is ledger copy of Ranjeet Retrail Garments Trading Pvt Ltd ....