TaxTMI 
TaxTMI 
2025 (5) TMI 2119
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....d that the assessee has a good case on merits, and if the relief is granted to the assessee on merits, then the assessee wishes not to press the grounds raised in its cross objection and the same may be kept open. Accordingly, we are dealing with the grounds raised by the Revenue in its appeal at the outset and the same are reproduced as follows for ready reference: - "a) "Whether on the facts and circumstances of the case and in law the Ld. CIT(A) is correct in deleting the addition made u/s.68 of the Act. the accommodation entry taken by the assessee company totalling of Rs. 4 Crores from M/s. CEA Consultants Pvt. Ltd. without considering the facts of the case that in the statement of Shri. Anil Agarwal and Shri Shailendra had admitted to given accommodation entry to the assessee company through M/s. CEA Consultants Pvt. Ltd. b) "Whether on the facts and circumstances of the case and in law the Ld. CIT(A) is correct in deleting the addition made u/s.69C of the Act of Rs. 8,00,000/- at rate of 2% of the accommodation entry of Rs. 4 Crore without considering the statement the statement of Shri. Anil Agarwal and Shri Shailendra wherein they had admitted to provide accommodation....
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....ts Private Limited, which is one of the four NBFCs that were involved in providing accommodation entries in the form of bogus unsecured loans, and Mr. Anil Agarwal and Mr. Shailendra have admitted on oath under section 131(1A) of the Act that there were involved in providing accommodation entries on commission basis through the above 4 NBFCs. Accordingly, the AO treated the amount of INR 4 crore received by the assessee as unexplained cash credit under section 68 of the Act and added the same to the total income of the assessee. Further, the AO also made an addition on account of the alleged payment of commission at the rate of 2%, and made an addition of INR 8 lakhs under section 69C of the Act. 6. The learned CIT(A), vide impugned order, allowed the ground raised by the assessee on this issue and deleted the addition made under section 68 and section 69C of the Act on the basis that the AO has merely arrived at the conclusion that the assessee has received accommodation entry without appreciating the fact that the assessee has sold its investment in Compulsory Convertible Debentures ("CCDs") to CEA Consultants Private Limited and the assessee has not received any unsecured loan ....
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....e Assessing Officer had arrived at the conclusion that, entry providers routed the unaccounted money of the beneficiaries into their books in the garb of unsecured loans. While arriving at the above conclusion, it is apparent that the Assessing Officer has merely relied on statements given on oath by one Mr. Anil Agarwal and Mr. Shailendra under section 131(1A) of the Act. During search and seizure operation conducted on Samtel Group of companies, the above persons admitted that they were involved in providing accommodation entries on commission basis through four NBFC's and CCPL (entity-buying CCDs sold by the company) is one of the entities to the transaction under consideration. The Assessing Officer has merely arrived at the conclusion that the appellant has provided accommodation entry to the appellant without appreciating the fact that the appellant has sold its investment in CCDs. The appellant had not received any unsecured loan from CCPL as alleged by the Assessing officer. The said CCDs were sold at an aggregate value of Rs. 4,00,00,000/- which is same as cost of acquisition and hence in profit & loss account there is no capital gain/ loss in respect of said sal....
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....e assessee, inter-alia, seeking information to verify the genuineness of the transaction with CEA Consultants Private Limited. We find that in response thereto, the assessee furnished a copy of the bank statements of the State Bank of India and the HDFC Bank highlighting the relevant transactions with CEA Consultants Private Limited. The assessee also furnished a copy of correspondence between the assessee and CEA Consultants Private Limited for the sale of CCDs, as well as the ledger account of CEA Consultants Private Limited in the assessee's books. The copy of all the above documents has also been placed on record before us by the assessee in the factual paper book. Further, in order to substantiate its submission that the assessee sold CCD of CEA Consultants Private Limited, the assessee has also placed reliance on the disclosures made in its Financial Statements for the year ended 31/03/2017. From the perusal of Note No. 5-Non-Current Investment, on page 24 of the paper book, we find that the assessee disclosed its investments in equity shares of various companies, redeemable preference shares and mutual funds. Further, we find that the assessee has also disclosed its investme....
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....ssue and deleted the disallowance made by the AO under section 14A read with Rule 8D of the Rules, inter-alia, on the basis that the computation of the AO does not align with the actual expenditure incurred by the assessee as evident from the financial records. Being aggrieved, the Revenue is in appeal before us. 11. During the hearing, the learned AR submitted that out of the total expenditure amounting to INR 2,04,92,837 debited by the assessee to its profit and loss account, an amount of INR 1,97,05,519 was disallowed and added back by the assessee while computing its income either under section 37 or under section 43B or as a capital expenditure. Thus, the learned AR submitted that the balance expenditure amounting to INR 7,87,317 was suo motu offered for disallowance by the assessee under section 14A of the Act. In this regard, the learned AR referred to the following statement of expenses disallowed vis-à-vis the amount debited to the profit and loss account for calculation of disallowance made under section 14A of the Act: - 12. Therefore, having perused the aforesaid statement along with the computation of total income for the year under consideration, forming part....