TaxTMI 
TaxTMI 
2024 (6) TMI 72
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....ding to the letter, a search seizure action u/s. 132 was conducted in the group cases of M/s Esn Dee Aluminium Ltd. By DDIT (Inv.) Unit-II(2), Mumbai on 28.03.2014 During this search and seizure action, a survey action u/s. 133A was also conducted in case of Shri. Hasmukh Mehta During the survey action, an admission was made by Shri Hasmukh Mehta before the investigation wing that he arranges accommodation entries of unsecured loans, share application money, capital gains, purchase bills etc for various entities. A diary was also impounded by the investigation wing which contained certain transactions done by the assessee. M/s Trio Mercantile & Trading Pvt. Ltd which are accommodation entries arranged by Shri Hasmukh Mehta in which the assessee is also a beneficiary of amount Rs. 3,08,47.239/ 2 After going through the information received and statements recorded it is seen that the assessee was one of the beneficiaries of accommodation entries furnished by Shri Hasmukh Mehta. The statements recorder by the investigation wing of Shri Hasmukh Mehta and his accomplices confirms to this extent The entries in diaries also confirm that the assessee has received an amount of Rs 3,08,47,....
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....,08,47,239/- 5. These details have also been incorporated at page 3 & 4 of the assessment order. Thus, it was stated that none of these entries were in the nature of loan or credit which can remotely suggest that there was some any kind of accommodation entries. However, the ld. AO not rejected the objections by the assessee but also rejected assessee's explanation in the following manner:- S.No. Name of the Party Amount (Rs.) Findings from the assessee's submission 1 Pioneer Insurance Pvt. Ltd. 550564 The assessee offering income against the fee received on account of risk inspection and bank statement reflecting the payment submitted. However, the nature of transaction is not proved vis- a-vis the business of assessee, creditworthiness of the payer, purpose of the risk inspection carried out by the payer vis-a-vis it's business, capacity of the assessee to conduct such inspect is not proved, in view of the fact that this party is an upfront company used by Shri Hasmukh Mehta for providing accommodation entries. Hence, the transaction cannot be treated as genuine. 2 HJ Thakkar Properties Pvt. Ltd 500000 900000 Only confirmation of the party to wh....
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....of purchase and bank statement of this party produced that payment were made for the purchase of animal feed by assessee. However, the details of the delivery, stock register vis- a vis assessee's business and books of accounts were not produced. Hence, the transaction is not genuine. 9 K. Sevantilal & Sons 6326000 Only copy of confirmation letter in respect of sales and bank statement of this party produced that payment were made for the supply of animal feed. However, the details of the delivery, stock register vis-a-vis assessee's business and books of accounts were not produced as well as the purchase against this sale was not produced by assessee. Hence, the transaction is not genuine. 10 K. Sevantilal 4400000 Only copy of confirmation letter in respect of purchase and bank statement of this party and assessee produced that payment were made for the purchase of animal feed by assessee. However, the details of the delivery, stock register vis-a vis assessee's business and books of accounts were not produced. Hence, the transaction is not genuine. 6.3 Despite the above discrepancies found, owing to the principles of natural justice final opportunity was aff....
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....y evidence to show the nature of transactions and the creditworthiness of the persons to give loan of Rs. 14,00,000/- and Rs. 12,00,000/- respectively. The onus always lies on the appellant to prove that the identity, genuineness and creditworthiness of the persons who have given loan. In the instant case, the assesee has not proved the creditworthiness of the persons. In view of the above, I have not reason to interfere the decision of the Id.AO and accordingly, the addition of Rs 26,00,000/- in the case of M/s. H J Thakkar and M/s. Stac International are upheld. 5.3.2 The transactions with Anirudha Enterprises of Rs. 50,00,000/- was on account of loan received. As rightly pointed out by the AO, the appellant had not filed any details to prove the genuineness and creditworthiness of the lender to give a loan of Rs. 50,00,000/- Further, the appellant had not provided any information in so far as the concerns M/s. ADF Foods P. Ltd., M/s. Sevantilal & Co., M/s K Sevantilal & Sons and M/s K Sevantilal in the appellate proceedings, burden of proof lies on the assessee to prove that facts and findings of the AO are incorrect. As per section 68, any sum found credited in the books of a....
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....53 7. Stac International Rs. 1200000/- Advance given Short term Advances given 33 8. K.Sevnatilal &Co. Rs. 5236000/- Paid for purchase of Goods Included in the purchase of P& LA/c 41 9. Sevantilal & Sons Rs. 6326000/- Received for sale of Goods Included in the Revenue from operations of P & LA/c 47 10. K.Sevantilal &Co. Rs. 4400000/- Pa id for purchase of Goods Included in the purchase of P& LA/c 42 8. Thus, he submitted that the reasons recorded itself was based on wrong premise that assessee has taken any kind of accommodation entry and also on merits such an addition cannot be sustained. 9. On the other hand, ld. DR relied upon the order of the ld. AO and ld. CIT(A) and submitted that onus to discharge the nature of every transaction alongwith proper evidences and details was upon the assessee which ld. AO and ld. CIT(A) had pointed out have not been satisfactorily explained. 10. We have heard rival submissions and also perused the relevant finding given in the impugned order as well as material referred to before us. The entire premise for reopening assessment u/s. 147 was that assessee has taken accommodation entries arranged by one Shri Hasmukh Meht....
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....an in this year by the said party to the assessee canot be doubted. Accordingly, this amount of Rs. 14,00,000/- cannot be added. There is no question of examining of any creditworthiness of the person returning loan when this party owed money to the assessee to the tune of Rs. 1,40,00,000/- as on 01/04/2013. Hence, this cannot be treated as unexplained cash credit. iii. Infrasoft Technologies Pvt. Ltd., (Rs. 12,13,488/-, Rs. 20,25,311/- & Rs. 20,14,896/-) The said nature of transaction has been on account of income / brokerage received which has been included in the sale of services in the profit and loss account and in support of which debit note and bank statement has been attached. Again if assessee has shown this as part of its income / brokerage received, then where is the question of testing the ingredient of unexplained cash credit or the parameters of Section 68 is to be satisfied. It is not the case of unexplained loan, albeit, assessee has rendered these services for which it has received payment and duly declared in the profit and loss account. Accordingly, this addition cannot be treated as unexplained cash credit. iv. Anirudha Enterprises - Rs. 50,00,000/- This is ....