TaxTMI 
TaxTMI 
2023 (8) TMI 74
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....eal (ITA No. 3060/M/2022) 1(a) On the facts and the circumstances of the appellant's case and in law the learned CIT(A) erred in holding that the A.O has legally assumed jurisdiction u/s 153C despite the fact that no money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to the appellant and no books of accounts or documents seized or requisitioned pertains or pertain to or any other information contained therein relates to the appellant. (b) On the facts and the circumstances of the appellant's case and in law the learned CIT(A) erred in not following the judgement of ITAT in appellant's own case in earlier years where all the facts are similar and order passed for the year under consideration is the part of the same order passed u/s 153C. 2. In the facts and circumstances of the appellant's case and in law, the learned CIT(A) erred in confirming the assessment passed u/s 153C of the Income tax Act, 1961 which was passed (a) in the absence of any incriminating material (b) Without having jurisdiction to the assessing officer as no opportunity of being heard u/s 127 of the act was granted to the appellant. (c) ....
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....rent parties who returned cash without delivery of goods and the assessee is one such person who has provided accommodation entries to M/s. Navjeevan Charitable Trust. A survey proceeding was also conducted against the assessee wherein the assessee had got recorded statement under section 133A that he has provided accommodation entries to M/s. Navjeevan Charitable Trust without delivery of goods through Shri Rajesh Warde, Shri Rashmikant K. Jhaveri and Shri Kishor Jhaveri from their proprietary concern. The assessee opted to treat the return already filed as reply to the notice issued under section 153C of the Act by declaring income of Rs. 11,56,150/- for A.Y. 2015-16. The AO completed assessment for A.Y. 2009-10 to 2015-16 under section 143(3) read with section 153C by determining the total income at Rs. 6,94,19,280/- by way of making addition of Rs. 45,58,677/- on account of cash credits on loss of sale (LTCL) under section 68 of the Act and Rs. 5,91,45,787/- as unexplained deposits under section 68 of the Act. 4. The assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has partly allowed the same. Feeling aggrieved with the impugned order passed by the....
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....stions arise for determination before the Bench are: (1) "As to whether the Ld. CIT(A) has erred in deleting the addition of Rs. 15,00,000/- out of the total addition of Rs. 4,35,93,787/- made by the AO on failure of the assessee to prove the genuineness and creditworthiness of the transactions?" and (2) "As to whether the Ld. CIT(A) has erred in not confirming the entire addition of Rs. 4,20,93,787/- made by the AO as per ground raised by the Revenue?" and (3) "As to whether the Ld. CIT(A) has erred in confirming the addition of 3% as commission income of the total addition of Rs. 4,20,93,787/- as per ground raised by the assessee?" 9. So far as first question framed in preceding para 8 as to deleting the addition of Rs. 15,00,000/- out of total addition of Rs. 4,35,93,787/- by the Ld. CIT(A) is concerned, we have perused the order passed by the Ld. CIT(A) who has duly thrashed the facts while giving the relief of Rs. 15,00,000/- to the assessee by returning following findings: "14.15 In this regard, on verification of the transactions made with Jammu & Kashmir Bank, it is seen that, the AO had made addition of all entries appearing at credit side of bank account for t....
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....h Rs.3 lakh + Rs. 1 Lakh) remained explained, which deserved to be allowed. Therefore, addition of Rs. 15 lacs is allowed, which also takes care of any rectification application pending with the AO." 10. Perusal of the aforesaid findings returned by the Ld. CIT(A) apparently goes to prove that there was an arithmetical error on the part of the AO qua entries of Rs. 5,00,000/- and Rs. 6,00,000/- appearing on the credit side of the bank transaction dated 24.03.2012 under the heading "as outward clearing" qua which the assessee has made specific submissions that the assessee in order to purchase one office paid an advance of Rs. 11,00,000/- to one Mr. Yusuf Memon but the deal could not be finalized and the said advance has been returned by Mr. Yusuf Memon qua which confirmation of Mr. Yusuf Memon is also there on the record. 11. Furthermore, other entry of Rs. 3,00,000/- dated 06.07.2012 and Rs. 1,00,000/- dated 29.09.2011 are appearing in the credit side of the bank account under the heading "as transferred". The assessee has been able to explain that aforesaid Rs. 3,00,000/- was transferred from current account of the assessee namely Modi Trading to saving account with Jammu & Ka....
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....he Axis Bank and Jammu & Kashmir Bank where the assessee was having accounts. The assessee was duly grilled during survey proceedings to the entries/deposits made in Axis Bank and Jammu & Kashmir Bank by putting question No.5 as referred to in para 3 of the assessment order to which the assessee replied that aforesaid transactions are borrowings from different parties and some of the transactions are with regard to mortgage loans and temporary overdrafts, the detail to substantiate the same would be submitted by 22.12.2016 but did not submit the detail. 15. However, during remand proceedings the assessee explained the same and thereafter duly examined by the Ld. CIT(A) as discussed in the extracted portion in the preceding para of the impugned order passed by the Ld. CIT(A). Entire investigation made by the AO as well as investigating agency leads to the conclusion that the assessee is a facilitator of accommodation entry provider and on the basis of this finding the Ld. CIT(A) proceeded to make the addition of Rs. 12,62,813/-. All these facts have been duly admitted by the assessee during recording of his statement by virtue of question No. 9 to 13 available at page 20 to 22 of t....