AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 1498
X X X X Extracts X X X X
X X X X Extracts X X X X
....e filed a chart of cash deposited by him in the banks and he admitted that he is providing accommodation entries. The Assessing Officer asked the assessee to explain the source of cash deposits, but, the assessee was unable to furnish a satisfactory reply. He submitted that the cash deposits in the account has been provided by the accommodation entry beneficiaries and deposited by him in his bank account and cheques were issued accordingly. He further submitted that commission @ 0.25% only of cash deposits has been received. The Assessing Officer noted that during assessment year 2004-05, the assessment order was passed u/s 153A wherein it has been established that the assessee failed to explain the cash deposits in the bank. Accordingly, the amount of Rs. 50,84,400/- was treated as income of the assessee from undisclosed sources and was added u/s 68 of the IT Act. The ld.CIT(A) also confirmed the addition so made by the Assessing Officer since for the impugned assessment year an amount of Rs. 18,99,300/- was the cash deposited in the bank. The Assessing Officer, invoking the provisions of section 68 and relying on various decisions made addition of Rs. 18,99,300/- to the total in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5. That the appellant crave leave to add, amend or modify any ground hereinafter." 4.1 The assessee has also filed the following additional ground:- "That the Assessing Officer erred in making the addition in the case of the appellant on the basis of bank statement u/s 68 of the Act without appreciating that bank statement is not books of account of the appellant and therefore addition could not be made u/s 68 of the Act." 5. The ld. counsel for the assessee, referring to the additional ground, submitted that it is purely a legal ground and no fresh facts are required to be investigated, therefore, this ground should be admitted. 6. After hearing both the sides and considering the fact that the additional ground raised by the assessee is a legal one, therefore, following the decision of the Hon'ble Supreme Court in the case of NTPC Ltd., the additional ground raised by the assessee is admitted for adjudication. 6.1 The ld. counsel for the assessee submitted that the assessee has been carrying on the business of providing accommodation entries through a number of companies promoted by him. The addition has been made by the Assessing Officer on the basis of bank statemen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re the CIT(A), he drew the attention of the Bench to ground of appeal No.2, wherein the assessee has raised the following ground as reproduced by the CIT(A) in the body of the assessment order:- "2. That the Assessing Officer erred in making addition of Rs. 18,99,300/- being the cash deposited in the bank account of the appellant without appreciating that admittedly the appellant was carrying on the business of providing accommodation entries and the cash was deposited in the bank account of the appellant during the course of the above business for providing accommodation entries in respect of which commission income had also been offered by the appellant during the course of search and in his income tax return for AY 09-10 and the income has also been assessed by the Assessing Officer in AY 09-10 therefore, cash deposited could not be added under section 68 of the Income Tax Act." 9. Referring to the above, he submitted that it is evident that the assessee was carrying on the business and the cash deposited constituted its business receipt. The amount was credited in the books of account of the assessee and he failed to discharge the onus cast upon him in terms of the provision....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ITR 1 (SC); and iii) Sreelekha Banerjee vs. CIT 49 ITR 112(SC). 10. So far as the decision of the Tribunal in the group cases is concerned, he submitted that the Tribunal in assessee's own case for the immediately preceding assessment year has restored the issue to the file of the Assessing Officer with certain directions. 11. We have considered the rival arguments made by both the sides and perused the material available on record. We find the assessee in the instant case, is engaged in the activity of providing accommodation entries. Since the assessee had made cash deposit of Rs. 18,99,300/- and was unable to explain the source of the same, the Assessing Officer, following his order for assessment year 2004-05 and relying on various decisions, made addition of the same u/s 68 of the Act which has been upheld by the CIT(A). It is the first proposition of the ld. counsel for the assessee that addition cannot be made u/s 68 of the Act on the basis of the bank statement since the bank statement is not the books of account of the assessee and, therefore, addition could not be made u/s 68 of the Act. For the above proposition, the ld. counsel for the assessee relied on the decisi....