AI Drafter 
TaxTMI 
TaxTMI 
2024 (2) TMI 454
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....the Ld.CIT (A) has erred in law and on facts in deleting the 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 reje....
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....n Ground nos. 9, 10 and 11, the appellant has challenged the protective addition made by the AO of Rs. 2,25,47,365/- under section 68 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 ....
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....ame of the party Date of payment Amount (rs.) 07-04-2012 GANESH INVESTMENTS 1200000 Prabhu Finhold Pvt. Ltd. 07.04.2012 1000000 07-04-2012 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 3....
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.... Arvind raja 18.04.2013 102410 22.03.2013 Keshav Trading company 1000000.00 Satpal bansal 22.03.2013 1000000 30.03.2013 K G TRADES 200000.00 Anup Arvind raja 18.04.2013 96800 30.03.2013 K G TRADES K V roa 11.06.2013 20800 30.03.2013 K G TRADES Deepali impex pvt ltd 31.05.2013 82400 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 a....
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.... HDFC Bank Date Receipts of Receipt/ Credits from Amount (Rs.) Name of the party Date of payment Amount (Rs.) 07-04-2012 GANESHA INVESTMENTS 1200000 Prabhu finhold Pvt. Ltd. 7.4.2012 1000000 07-04-2012 GANESHA INVESTMENTS Prabhu finhold Pvt. Ltd. 9.4.2012 200000 24-05-2012 Shreya Cabcord & Electric Co. 17589 Contra 8.3.2013 17589 14-07-2012 Vikas Associates 800000 P K gupta 21.7.2012 800000 20-07-2012 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....
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....ding 15.03.2013 2494300 15.03.2013 Kumar Brothers co. S.Udit securities pvt ltd 29.03.2013 5700 22.03.2013 MAHADEV INVESTMENTS 500000.00 S.Udit securities pvt ltd 29.03.2013 397590 22.03.2013 MAHADEV INVESTMENTS Anup arvind raja 18.04.2013 102410 22.03.2013 Keshav Trading Company 1000000.00 Satpal bansal 22.03.2013 1000000 30.03.2013 K G TRADES 200000.00 Anup arvind raja 18.04.2013 96800 30.03.2013 K G TRADES KVroa 11.06.2013 20800 30.03.2013 K G TRADES Deepali impex pvt ltd 31.05.2013 82400 Totals 20029775.00 20029775.00 A.Y. 2014-15 IDBI Bank:- Date of Receipt Receipt/ Credits from Amount (Rs.) Name of the party Date of payment Amount (Rs.) 18-04-2013 MAHADEV INVESTMENTS 100000.00 Anup arvind raja 18.4.2013 100000 04-05-2013 K G TRADES 170240.00 Deepali impex pvt ltd 31.5.2013 148140 04-05-2013 K G TRADES Shubh labh traders 11.7.2013 22....
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....000.00 MAHADEV INVESTMENTS 10.8.2013 1000000 30-08-2013 KVRao 1000000.00 Rahul mangla food processing 30.8.2013 1000000 10-09-2013 Anush Finlease & Construction Pvt. Ltd. 1900000.00 Chopra diagnostic 11.9.2013 1900000 10-09-2013 Kanu Peripherals Pvt Ltd 100000.00 Cash withdrawl 20.9.2013 100000 05-10-2013 KVRao 1500000.00 SR buildcon pvt ltd 5.10.2013 1000000 05-10-2013 KVRao Aastha infra projects (p) ltd 7.10.2013 500000 17-10-2013 NISHAJAIN 100000.00 Saphire polyvinyl (P) ltd 23.10.2013 100000 18-10-2013 Third Generation Pvt Ltd 73863.00 Saphire polyvinyl (P) ltd 23.10.2013 73863 22-10-2013 KVRao 1500000.00 Saphire polyvinyl (P) ltd 23.10.2013 300000 22-10-2013 KVRao H J book agency 24.10.2013 1200000 25-10-2013 Kumar Brothers co. 165760.00 H J book agency 28.10.2013 78618 25-10-2013 Kumar Brothers co. Golden villas 29.1.2014 87142 28-10-2013 Sai Infoweb Pvt. Ltd. ....
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.... BRR securities pvt ltd 11.9.2014 241957 08-09-2014 Keshav Company Trading JINDAL SAXENA FINANCIAL SERVICES PVT 15.10.2014 4892 08-09-2014 Keshav Company Trading BRR securities pvt ltd 10.12.2014 27710 08-09-2014 Satpal Bansal 1000000.00 BRR securities pvt ltd 11.9.2014 1000000 17-09-2014 Aastha Infra Projects (P) Ltd 543567.00 JINDAL SAXENA FINANCIAL SERVICES PVT 17.9.2014 500000 17-09-2014 Aastha Infra Projects (P) Ltd JINDAL SAXENA FINANCIAL SERVICES PVT 15.10.2014 17601 17-09-2014 Aastha Infra Projects (P) Ltd JINDAL SAXENA FINANCIAL SERVICES PVT 21.11.2014 22540 17-09-2014 Aastha Infra Projects (P) Ltd BRR securities pvt ltd 10.12.2014 3426 15-10-2014 Sanjay Kumar Goyal HUF 577507.00 JINDAL SAXENA FINANCIAL SERVICES PVT 15.10.2014 577507 18-11-2014 Royal India 577460.00 JINDAL SAXENA FINANCIAL SERVICES PVT 21.11.2014 577460 25-11-2014 Sapphire Polyvinyl (P) Ltd 600000.00 JINDAL SAXEN....
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....00 Jindal saxena financial services Pvt Ltd 23.07.2015 363810 22-07-2015 Yogeshwar Trade Expo India Pvt. Ltd 541806.00 Jindal saxena financial services Pvt Ltd 23.07.2015 541806 22-07-2015 Royal India 472560.00 Jindal saxena financial services Pvt Ltd 23.07.2015 131990 22-07-2015 Royal India Maha laxmi trading CO 24.07.2015 300000 22-07-2015 Royal India Jindal saxena financial services Pvt Ltd 13.08.2015 40570 12-08-2015 Rekha Jain 200000.00 Jindal saxena financial services Pvt Ltd 13.08.2015 59430 12-08-2015 Rekha Jain Jemini trading co 13.08.2015 105554 12-08-2015 Rekha Jain Brr securities pvt ltd 8.09.2015 35016 13-08-2015 Royal India 499216.00 Jemini trading co 13.08.2015 499216 13-08-2015 Narula Surgical 495230.00 Jemini trading co 13.08.2015 495230 14-08-2015 Dinesh Modi 1250000.00 Jemini trading co 16.08.2015 1000000 14-08-2015 Dinesh Modi Shubh labh traders 16.08.2015 250000 14-08-2015 Rimpy Ban....