TaxTMI 
TaxTMI 
2024 (2) TMI 454
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....e addition of Rs. 56,368/- on account of unaccounted commission @ 0.25 % of total unexplained credit entries appearing in the bank account of Rs. 2,25,47,365/- 3. That the grounds of appeal are with prejudice to each other. 3. The assessee has raised the following grounds of appeal in CO No. 91/Del/2022:- 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)] is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that assessment was against the non existing company which is invalid in the eyes of law. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the order passed by the learned Assessing Officer (AO) under Section 143(3) read with section 153C is without jurisdiction. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the additions made under Section 153C are bad in law i....
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.... of the Act. The AO in the assessment order has made an addition u/s 68 of the Act on protective basis on account of unexplained credit entries of Rs. 2,25,47,365/- in the bank account of the appellant received from various parties. The AO in the assessment order has mentioned that a search operation was carried out on the office and residence of Shri Naresh Kumar Jain and Shri Anand Jain as well as their employees. The AO further mentioned that during the investigation it has been established that various companies including the appellant company were shell companies which were being managed and operated by Jain Brothers for providing accommodation entries by routing unaccounted income of the beneficiaries by depositing cash in the bank accounts of the various shell concerns and thereby routing the funds into the account of beneficiaries through the bank accounts of these shell concerns. The assessing officer in his assessment order has also mentioned that the appellant has only acted as conduit concern for providing accommodation entries to various beneficiaries. As regards the substantive addition the AO has mentioned that information to the assessing officers of the beneficiari....
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....GANESH INVESTMENTS Prabhu Finhold Pvt. Ltd. 09.04.2012 200000 24-05-2012 Shreya Cabcord & Electric Co. 17589 Contra 08.03.2013 17589 14-07-2012 Vikas Associates 800000 P K gupta 21.07.2012 800000 20-07-2012 Technosoft Infosystem P Ltd 200000 P K gupta 21.07.2012 200000 06-08-2012 K G TRADES 30000 Ram Kumar 30.08.2012 300000 Total 2517589.00 2517589 Date of Receipts Receipt/Credits From Amount(Rs.) Name of the party Date of payment Amount (rs.) 25.10.2012 Shubh Laxmi 1446934.00 Anush Finlease & Construction 26.10.2012 1400000 25.10.2012 Shubh Laxmi Director remuneration 05.12.2012 15000 25.10.2012 Shubh Laxmi Richa portfolio pvt Ltd 18.12.2012 25000 25.10.2012 Shubh Laxmi Deepali Impex Pvt Ltd. 12.03.2013 1150 25.10.2012 Shubh Laxmi Other expenses 31.01.2013 2074 25.10.2012 Shubh Laxmi S. Udit securities Pvt Ltd 29.03.2013 3710 30.10.2012 Bank charges 1.00 Bank charges 30.10.2012 1 09.11.2012 Anil Kumar Singhla 500000.00 SR Buildcon Pvt Ltd 15.11.2012 ....
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.... Totals 20029775.00 20029775.00 6.4. From the above transactions, it is noticed that the appellant company has received funds from various concerns as mentioned above and thereafter amounts were transferred to the above mentioned companies/ concerns immediately, the appellant company is not beneficiary company. The above arrangement of funds is nothing but part of modus operandi of the accommodation entry provider to introduce the unaccounted funds of the beneficiaries in their respective bank accounts. Further, the AO also in the assessment order has observed that the appellant company was a conduit company operated by Sh. Naresh Jain and Anand Jain to provide accommodation entries to various beneficiaries and said beneficiaries have already been identified. Accordingly, when the beneficiaries were identified, the addition in such cases can at best be that of commission earned on such accommodation entries. But as far as charging of commission is concerned, it has been held in the case of Sh. Anand Jain and Sh. Naresh Jain that they were entry operators who were managing and controlling various shell concerns including the appellant for providing accommodatio....
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....012 Technosoft Infosystem Pvt. Ltd. 200000 P K gupta 21.7.2012 200000 06-08-2012 K G TRADES 300000 Ram kumar 30.8.2012 300000 Total 2517589.00 2517589 b.) IDBI Bank Date of Receipt Receipt/ Credits from Amount (Rs.) Name of the party Date of payment Amount (Rs.) 25.10.2012 Shubh Laxmi 1446934.00 Anush finlease & construction 26.10.2012 1400000 25.10.2012 Shubh Laxmi Director remuneration 05.12.2012 15000 25.10.2012 Shubh Laxmi Richa portfolio pvt ltd 18.12.2012 25000 25.10.2012 Shubh Laxmi Deepali impex pvt ltd 12.03.2013 1150 25.10.2012 Shubh Laxmi Other expenses 31.01.2013 2074 25.10.2012 Shubh Laxmi S.Udit securities pvt 29.03.2013 3710 30.10.2012 Bank Charges 1.00 ltd Bank charges 30.10.2012 1 09.11.2012 Anil Kumar Singhla 500000.00 SR buildcon pvt ltd 15.11.2012 500000 22.11.2012 SHUBHADARA SECURITIES 800000.00 Abhiruchi buildwell pvt ltd 22.11.2012 800000 22.11.2012 Sai Infoweb Pvt. Ltd. 1000000.00 Abhiruchi buildwell pvt ltd 22.11.2012 1000000 22.11.2012 MAHADEV INVESTMENTS ....
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....2013 148140 04-05-2013 K G TRADES Shubh labh traders 11.7.2013 22100 17-05-2013 Kumar Brothers co. 3500000.00 Jemini trading 17.5.2013 3492500 17-05-2013 Kumar Brothers co. Shubh labh traders 11.7.2013 4037 17-05-2013 Kumar Brothers co. Other expenses 12.8.2013 3463 28-05-2013 Deepali impex pvt ltd 230540.00 Deepali impex pvt ltd 230540 31-05-2013 Amit Jain 1500000.00 Deepali impex pvt ltd 31.5.2013 1320800 31-05-2013 Amit Jain K V roa 11.6.2013 179200 11-06-2013 Jemini Trading Co. 1300000.00 K V roa 11.6.2013 1300000 11-06-2013 Shubh Traders Labh 1000000.00 K V roa 11.6.2013 1000000 12-06-2013 Jemini Trading Co. 1500000.00 K V roa 12.6.2013 1500000 14-06-2013 Diverse Infotech Private Limited 509765.00 Sanjay kumar goyal huf 15.6.2013 500000 14-06-2013 Diverse Infotech Private Limited Deepali impex pvt ltd 9.7.2013 9765 09-07-2013 MAHADEV INVESTMENTS 2025000.00 Deepali impex pvt ltd 9.7.2013 2025000 09-07-2013 Jemini Trading Co. 596029.00 Deepali impex pvt ltd 9.7.2013 596029 09-07-2013 MAHADEV INVESTM....
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.... Pvt. Ltd. 1038466.00 Golden villas 29.1.2014 912858 27-01-2014 Rmp Holding Pvt. Ltd. Cash withdrawl 24.3.2014 87142 27-01-2014 Rmp Holding Pvt. Ltd. Sai Infoweb Pvt. Ltd. 19.5.2014 38466 21-02-2014 Rmp Holding Pvt. Ltd. 1350775.00 Sai infoweb pvt ltd 22.2.2014 1300000 21-02-2014 Rmp Holding Pvt. Ltd. Sai Infoweb Pvt. Ltd. 19.5.2014 50775 21-02-2014 KVRao 8877.00 Cash withdrawl 24.3.2014 3098 21-02-2014 KVRao Sai Infoweb Pvt. Ltd. 19.5.2014 5779 11-03-2014 Kumar Brothers co. 32690.00 Sai Infoweb Pvt. Ltd. 19.5.2014 32690 Total 29678971.0 0 29678971.00 A.Y. 2015-16 IDBI Bank Date of Receipt Receipt/Credits from Amount (Rs.) Name of the partv Date of payment Amount (Rs.) 09-04-2014 Interest On Refund 3500.00 BRR securities pvt ltd 11.9.2014 3500 19-05-2014 HJ BOOK AGENCY 4900000.00 JINDAL SAXENA FINANCIAL SERVICES PVT 19.5.2014 2800000 19-05-2014 HJ BOOK AGENCY Sai Infoweb Pvt. Ltd. 19.5.2014 1972290 19-05-2014 HJ BOOK AGENCY Saphire polyvinyl (p) ltd &nbs....
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.... 27-12-2014 Keshav Trading Company 1650000.00 JINDAL SAXENA FINANCIAL SERVICES PVT 29.12.2014 1650000 31-12-2014 Velocity Fitness 500000.00 BRR securities pvt ltd 1.1.2015 500000 02-01-2015 NYK ENTERPRISES. Pvt. Ltd 223640.00 JINDAL SAXENA FINANCIAL SERVICES PVT 4.1.2015 200000 02-01-2015 NYK ENTERPRISES. Pvt. Ltd Rajendra kumar 2.3.2015 18840 02-01-2015 NYK ENTERPRISES. Pvt. Ltd Other expenses 2.3.2015 4800 12-01-2015 Royal India 198740.00 Phuspa khatana 26.2.2015 198740 19-01-2015 Royal India 198840.00 Phuspa khatana 26.2.2015 198840 19-01-2015 Sapphire Polyvinyl (P) Ltd 29740.00 Phuspa khatana 26.2.2015 2420 19-01-2015 Sapphire Polyvinyl (P) Ltd Rajendra kumar 2.3.2015 27320 26-02-2015 JINDALSAXENA FINANCIAL SERVICES PVT Ltd 1000000.00 Phuspa khatana 26.2.2015 1000000 02-03-2015 JINDAL SAXENA FINANCIAL SERVICES PVT Ltd 1250000.00 Phuspa khatana 2.3.2015 709300 02-03-2015 JINDAL SAXENA FINANCIAL SERVICES PVT Ltd Rajendra kumar 2.3.2015 512764 02-03-2015 JINDAL SAXENA FINANCIAL SERVICES PVT Ltd JINDAL SAXENA FINANCIAL SERVICE....