TaxTMI 
TaxTMI 
2021 (12) TMI 136
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....e payments made for purchases were fully recorded in the books of accounts maintained in regular course of business and were verifiable from bank account of the assessee as well as the purchase bills and stock registers. 4. That the Id. CIT(APPEALS) has further failed to appreciate that the AO, having not found any defect or discrepancy in the audited accounts of the assesse including trading account, complete stock tally, opening stocks, closing stocks, sales declared etc., ought not to have made any addition only on the basis of suspicion based on alleged statement which too was recorded at the bank of the assesse without providing copy of statement to the assesse and also without providing any opportunity of cross examination. 5. That the appellant craves the right to add, delete, amend any or all grounds of appeal. 3. Representatives of both the sides were heard at length. Case record carefully perused and the relevant decision brought to my notice is considered. 4. Briefly stated the facts of the case are that the assessee filed the original return of income on 29.10.2007 declaring nil income. The return was processed u/s. 143 (1) of the Act. 5. A le....
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.... quashed the reassessment order. 11. Per contra the DR strongly supported the findings of the lower authorities. 12. I have given a thoughtful consideration to the orders of the authorities below and have accordingly perused the decision of the coordinate Benches. I find that this Tribunal in ITA no. 1512/Del/2015 was seized identical issues and on identical facts held as under :- "Reasons for the belief that the income has escaped assessment in the case of M/s Krishan Lal Gambhir & Sons for the assessment year 2006-07 A letter bearing F.No. Addl.CIT/(Hq)/(Coord.)/Accommodation entry/2012- 13/15016 dated 26.03.2013 was received from the Office of the Chief Commissioner of I.Tax, Delhi-1, New Delhi therein forwarding letter bearing F.No. CIT(C)- II/2012-13/3898 dated 19.03.2013 received from the Commissioner of I.Tax, Central-II, New Delhi along with a CD containing the details of accommodation entries provided by Sh. Rakesh Gupta & Sh. Vishesh Gupta & Sh. Navneet Jain & Sh. Vaibhav Jain and directing this office to take necessary action as per section 148 in respect of entries pertaining to A.Y. 2006-07, which is time barring on 31.03.2013. The info....
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.... Vishnu Trading Co. M/s Krishan Lal Gambhir & Sons Rs. 3,52,461 Total amount of entries Rs. 7,58,321 Since Sh. Rakesh Gupta & Sh. Vishesh Gupta and Sh. Navneet Jain & Sh. Vaibhav Jain during the course of assessment proceedings u/s 153A of I.T. Act have admitted that they have given accommodation entries to the parties whose lists have been provided by them to the ACIT, Central Circle-10, New Delhi, therefore, it is fair to conclude that M/s Krishan Lal Gambhir & Sons, whose name is appearing in the said list, has taken accommodation entries from Shri Rakesh Gupta & Sh. Vishesh Gupta and Sh. Navneet Jain & Sh. Vaibhav Jain pertaining to A.Y. 2006-07. Also the details of Income Tax Return filed by M/s Krishan Lal Ghambhir & Sons for A.Y. 2006-07 and processing done u/s 143(1) of I.Tax Act thereof were taken out from ITD System. Further, no scrutiny assessment was done in A.Y. 2006-07. Therefore, I have reasons to believe that income chargeable to tax amounting to Rs. 7,58,321/- for the F.Y. 2005-06 relevant to A.Y. 2006-07 has escaped assessment and it is a fit case for initiation of proceedings u/s 147 of the Act. Propos....
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....ought to have applied' profit rate in this nature of trade. Estimating profit @ 20% by taking into consideration the or visions of section 40A(3) will not lead to determination of correct real income. Section 40A(3) is meant for a different purpose when the assessee has made purchases in cash. This provision cannot be applied in such cases. Once the purchases are held to be bogus then the trading results declared by the assessee cannot be accepted and right course in such case is to reject books of accounts and profit has to be estimated by applying a comparative profit rate in the same trade. Though there can be a little guess work in estimating profit rate but such profit rate cannot be punitive." 12. Ld. DR even though vehemently relied on the order of CIT(A) as well as that of the Assessing Officer, could not bring to our knowledge any cogent material or evidence which may compel us not to follow the decision of this Bench in ITA No. 1372/Del/2015 (supra) and ITA No. 1429/Del/2015(supra). 13. We therefore, respectfully following the decision of this Tribunal in the case of Unique Metal Industries (supra) and Shree Radheshyam & Company (supra), delete the addit....
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..... Vishesh Gupta. The list gives the name of the firm which has provided the accommodation entry along with the name and address of the recipients of accommodation entry. 4. Sh. Navneet Jain & Sh. Vaibhav Jain has provided accommodation entry through thirty- seven paper entities. The list of the firms giving accommodation entry is enclosed as annexure- B. The list of accommodation entry recipients, has been obtained from Sh. Naveneet Jain & Sh. Vaibhav Jain. It does not give year wise bifurcation. Hard copy of the list is enclosed as annexure-C, duly signed by Sh. Vaibhav Jain. Thus, the firms mention in the list B' have provided accommodation entries to the firms mentioned in list 'C. 5. The soft copy of the information in respect to annexure A, B & C is also enclosed. 6. The information of accommodation entry includes A.Y. 2006-07 also, which is a time barring year for taking action u/s 148 of the Act 7. This information is forwarded to you for early dissemination to various field offices in Delhi (Soft copy also enclosed).'' It is evident from the assessment order passed by the ACIT, Centra! Circle-10, New Delhi on 28.03.20....
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.... provided Amount of Accommodation entry 1. Shree Bankey Bihari Trading Company M/s Priya Enterprises Rs. 3,69,408/- 2. OM Agencies M/s Priya Enterprises Rs. 7,24,172/- Total amount of entries = Rs. 10,93,580/- Also the details of Income tax Return filed by M/s Priya Enterprises for A.Y. 2007-08 and processing done u/s 143(1) of I.Tax Act thereof were tried to be taken out from ITD System, However, the same were not found available there. Thus, as per our record, the assessee has not filed any return of income for A.Y. 2007-08. Further, no scrutiny assessment was done in A.Y. 2007-08. Therefore, I have reasons to believe that income chargeable to tax amounting to Rs. 10,93,580/- for the F.Y. 2006-07 relevant to A.Y. 2007-08 has escaped assessment. Besides this, any other income chargeable to tax that has escaped assessment, which will come to the notice of this office during assessment proceedings shall also be added back. Thus, I have reasons to believe that it is a fit case for initiation of proceedings u/s 147 of the Act. Proposal in the prescribed form for the A.Y. 2007....