TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 1134
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....he IT Act without appreciating the fact that assessee itself is a hawala dealer and failed to account for all the material facts related to its business dealings. The AO rightly rejected the books of accounts u/s 145(3) of the IT. Act & disallowed the claim of the assessee for purchases/expenses amounting to Rs. 11,17,69,752/- being uproved & unexplained expenditure within the meaning of the provision of section 69C of the IT. Act." 2. The brief facts of the case are that the assessee company has filed its return of income for AY 2011-12 on 30-09-2011 declaring total income at Rs. 15,06,099. The case was selected for scrutiny and notices u/s 143(2) and 142(1) of the Act, were issued. The assessee neither appeared before the AO nor furnishe....
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....ternational Ltd. In order to verify the details of transactions, notice u/s 133(6) was issued to Axis Bank Ltd, for which the bank has filed complete details of transactions. The AO also issued notices to YES Bank Ltd calling for various details for which YES Bank Ltd has furnished necessary details. From the information collected from banks, the AO noticed that fund has been transferred from M/s Arshiya International Ltd's bank account to assessee's bank accounts from where cheques were issaued to various companies. The AO further observed that the assessee company's name was appearing in the website of sales-tax department in the list of suspicious dealers, who issued bogus bills without delivery of goods. Hence, notice u/s 133(6) was ser....
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.... opportunity has been provided to the assessee to furnish necessary details, but the assessee neither utilised the opportunity provided to justify its case nor filed any details. Therefore, there is no reason to give one more opportunity to the assessee and accordingly requested the appellate authority to decide the appeal on merit. The Ld. CIT(A), after considering relevant submissions of the assessee and also considering the statement recorded from the director of the company, came to the conclusion that the assessee was indulging in providing accommodation entries to various persons on which it has charged commission ranging from 1 to 1.5% and this fact has been confirmed by the AO in his assessment order, where he stated that the assess....
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....at the Ld.CIT(A) was erred in deleting addition made by the AO towards unexplained expenditure towards purchases u/s 69C of the Act without appreciating the fact that the enquiries conducted during the course of assessment clearly proves the fact that the assessee is indulging in providing accommodation entries to M/s Arshiya International Ltd and the funds received from the said beneficiary has been transferred to various companies. The Ld.AO further submitted that although the AO has brought out various facts to come to the conclusion that the assessee has failed to explain purchases with necessary materials, the Ld.CIT(A) has deleted addition without discussing the issues on merits for the simple reason that the assessee has admitted its....
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....ailable on record and gone through the orders of authorities below. It is an admitted fact that the assessee never appeared before the AO despite various notices issued calling for necessary details. It is also an admitted fact that the AO has gathered various information from all the corners including banks and the beneficiaries of accommodation entries issued by the assessee, in order to ascertain true character of transactions recorded in assessee's books of account. The investigation carried out during the course of assessment proceedings coupled with information available in sales-tax website categorically proves that the assessee is involved in providing accommodation entries for a commission ranging from 1 to 1.5%. The AO has made ad....
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....re debited to the P&L Account with necessary evidences. Although there is merit in the findings of the Ld. CIT(A) that no income could be earned without expenditure, but it is for the assessee to prove expenditure debited to the P&L Account with necessary evidence and also to prove that such expenditure has been incurred wholly and exclusively for the purpose of business. We, therefore, are of the opinion that the findings of the Ld.CIT(A) are not supported by any evidence and are contrary to assessee's own admission. 7. Insofar as case laws relied upon by the assessee is concerned, those case laws are rendered under different set of facts and hence, cannot be applied to the facts of the present case. Accordingly, case laws relied upon by ....