TaxTMI 
TaxTMI 
TaxTMI 
2023 (7) TMI 1494
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....y be condoned. On the contrary the Ld. DR refuted the claim of the Assessee. We do not find any material/reason contrary to the claim of the Assessee qua occurring of delay and therefore considering the reason for delay as genuine and bonafide, we are inclined to condone the delay of 23 days in filling the instant appeal, hence the same is condoned. 3. Because, the facts and issues involved in these appeal are common, hence for the sake of brevity, we are inclined to decide ITA 1540/Mum/2023 as a lead case, and result of the same shall be applicable to both the appeals. 4. In ITA 1540/Mum/2023, the Assessee had declared its total income of Rs 4,19,950/- by filing its return of income on dated 28th Sep, 2012. Subsequently, on the basis of information received from the DDIT(Inv) unit 7(4) Mumbai, the following reasons for re-opening of the case u/s. 147 of the Act, were recorded. 03. In this case the following information was received from DDIT (Investigation) Unit 7(4), Mumbai. 01. A Search and Seizure action u/s 132 of the Income-tax Act, 1961 was carried out in the case of Mr. Vipul Vidur Bhatt his other related entities uz (1) M/s. Sunrise Asian Limited, (ii) M/s. Sampada C....
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.... office at 1407, 14th floor, new jaiphalwadi, Police colony, Tardeo, Mumbai-400034." 03. On perusal of the ledger account of the bogus entities/ companies managed, controlled and operated by Shri. Vipul Vidur Bhatt, it is seen that the assessee (Shir Darshan Kumarpal Vakharia) was one of the beneficiaries who has taken the bogus accommodation entries worth Rs. 27,40,000/- in F.Y. 2011-12 from Santoshima Tradelinks Limited and Vasudev Rawal HUF being bogus entities which were managed, controlled and operated by Mr.Vipul Vidur Bhatt for providing bogues accommodation entities, the details of which are as under: Sr. No. Name of the bogus entities Name of the Assessee/ beneficiary (3) PAN (4) Assessing officer (5) F.Y. (6) Amount (7) Debit 7(1) Debit 7(2) 1 Santoshima Tradelinks Limited Darshan Kumarpal Vakharia ABYPV8945Q WARD 2(1) THANE 2011-12 22,40,000 2,40,000 2 Vasudev Rawal HUF Darshan Kumarpal Vakharia ABYPV8945Q WARD 2(1) THANE 2011-12 5,00,000 0.00 Total 27,40,000 2,40,000 04. The above mentioned entities in column-2 of the table-1, above are bogus entities managed, controlled and operated by Mr. Vipul Vi....
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....his statement recorded u/s. 132(4) of the Act, has accepted that he is an entry operator and all the above mentioned entities/companies are used by him for providing various bogus accommodations entries to various beneficiarie for commission. The parties from whom the Assessee has taken loan are bogus parties. Therefore, the interest claimed to have paid to these parties is nothing, but Assessee's un-explained expenditure routed through proper channel. In view of this, the interest amount of Rs. 3,00,000/- { Rs. 2,40,000/- paid to M/s. Santoshima trade links Ltd. and Rs. 60,000/- paid to M/s. Vasudev P. Rawal (HUF)} is treated as unexplained expenditure u/s. 68 of the Act, and added to the total income of the Assessee. 6. The Assessee being aggrieved before the Ld. Commissioner, not only challenged the addition made by the AO, but also the re-opening of the re-assessment proceedings u/s 147/148 of the Act. 7. The Ld. Commissioner not only affirmed the re-opening of the assessment proceedings u/s. 147 of the Act as valid, but also affirmed addition of Rs. 3 Lacs (2,40,000/- 60,000/-) by concluding as under: 5.11 In view of the afore-stated position of law as also held by the Hon....
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.... that there was an escapement of income from assessment in the matter Hence the grounds raised by the appellant challenging validity of assessment/reassessment notice are not tenable on facts and in law Thus, there is no merit in the appeal of the appellant as regards the technical ground on reopening of the assessment is concerned Accordingly, the assessment is held to be validly re-opened and related grounds of appeal i.e. 3 and 4 of both the appeals are hereby dismissed. 6. The ground of appeal 1 is against the disallowance of interest paid of Rs 3,00,000/- on loans taken from two parties i.e. M/s Santoshimaa Tradelinks Ltd and Vasudev Rawal HUF in AY 2012-13 and the disallowance of interest paid of Rs. 2,40,000/- on loan taken from M/s Santoshimaa Tradelinks Ltd in AY 2013-14, thereby making addition as unexplained expenditure. 6.1............................................................................................................................................................ ............................................................................................................................................................... ................................
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....d loans to the two parties i.e. Rs. 2,40,000/- to M/s Santoshima Tradelink Ltd and Rs. 60,000/- to M/s Vasudev P Rawal (HUF). The accommodation entries pertain to the AY 2011-12 and necessary addition u/s 68 could be made in that particular AY only. It was not clear whether regular assessment/reassessment was done in AY 2011-12 in which the accommodation entries were received by the appellant. Hence, the appellant had been asked to submit the details of assessment of AY 2011-12. In response to the same, the appellant has submitted copy of intimation u/s 143(1) issued by the /CPC for AY: 2011-12. 6.13 In the AY 2012-13, the AO treated the interest paid to the above parties, on the loan/accommodation entry, as unexplained expenditure, which was not claimed by the appellant as expenditure in its P&L account or in its computation of total income. However, it is further noticed that the appellant in the very next AY 2013-14 has claimed the interest expenditure as deduction in its computation of total income. Hence, the contentions of the appellant that it got the loans in his individual capacity, not maintaining books of account, there is no credit entry in books of account, hence no ....
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....r under consideration as well. During the course of assessment proceedings, the Assessee also submitted the following documents in order to substantiate its claim. (i) The confirmation of loans. (ii) Acknowledgment of returns of income of loan parties. (iii) Copies of relevant pages of bank statements of loan parties. (iv) Copies of bank statements of the Assessee, in which interest payments have been debited. 9.1 However, the Assessing Officer doubted and rejected the same while relying upon the statement of Mr. Vipul Vidur Bhatt, without providing copy of the his statement to the Assessee and even without affording any opportunity of cross examination of Mr. Bhat. The Assessee in this case, has not only discharged its primary onus by establishing the identity of the parties etc. , providing confirmation of loans, acknowledgment of return of income filed by the parties who have duly shown the amount of loan in their returns of income and banks statement of loan parties and the Assessee showing the transactions held, but also shown to have deducted TDS on the interest payment made to the parties, which also strengthen the genuineness of the claim of the Assessee. Therefore....