TaxTMI 
TaxTMI 
2022 (9) TMI 1091
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....000/- made under section 68 of the Act by not considering the findings of the AO that out of the total unsecured loan of Rs.15,70,99,012/- shown under the head of trade payables, the genuineness, identity and creditworthiness of unsecured loan to the extent of Rs.11,72,14,000/- in the assessee's books of accounts could not be proved. 2. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.40,00,849/- made under section 69 of the Act by not appreciating that the assessee has concealed particulars of income in respect of peak credit balance of Rs.40,00,849/- in bank account which was not disclosed in the return of income. 3. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.2,81,409/- mad....
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....ng the assessment proceedings. In fact, only 3 parties has given the confirmation and rest of the parties has not been produced before the Assessing Officer. Thus, the identity, creditworthiness and the genuineness of the activities were not established by the assessee. The CIT(A) should have taken on record that the Director of the assessee company has stated that the said is accommodation entry but the records reveal otherwise. Therefore, order of the CIT(A) be set aside. 6. As regards to ground no.2, the addition under Section 69of the Act, the Ld. DR submitted that bank account did not disclose credit entries and the assessee has not established the nexus between the same. 7. As regards to ground no.3, the Ld. DR relied upon the Asses....
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.... was involved in providing accommodation entries and had earned commission only. He had earlier stated in his affidavit the same. The funds were immediately transferred to the respective persons i.e. entry receiver say for example the account with DCB bank shows such entries. There was hardly any balance in bank or cash on hand inspite of such huge transactions. The company had confirmed that no business was carried on by it i.e. in the sense of manufacturing or trading or otherwise. The Ld. AR further submitted that when the Director of the respondent company had confirmed on his cross-examination on oath by the Assessing Officer in this regard, such statement is the conclusive evidence and the Assessing Officer has not brought on record a....
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....nt. The CIT(A) has also held that the assessee informed that the rate of commission had been calculated @ 1% on total bank credits in the case of entry providers. The Assessing Officer has only referred to the credit of Rs.11,72,14,000/- in respect of letters issued under Section 133(6), letters which were returned back and the parties whose addresses were not provided by the assessee. This direction by the CIT(A) clearly has not given the picture as to on what basis the assessee is dealing with entry providers or giving accommodation entry. The CIT(A) has also not taken cognisance of the evidences provided by the assessee and simplicitor directed the Assessing Officer to calculate the commission income of the assessee @ 1% on total bank cr....