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2025 (6) TMI 1744
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.... Sahil Tradewell Marketing Pvt. Ltd CIT(A)-3, Gurgaon's order dated 29.11.2022 passed in case no. 10452, involving proceedings under Section 153A r.w.s. 143(3) of the Act. 3. 319/Del/2023 for AY: 2015-16 ACIT, Central Circle-1, Gurugram Sahil Tradewell Marketing Pvt. Ltd. CIT(A)-3, Gurgaon's order dated 29.11.2022 passed in case no. 10459 involving proceedings under Section 153A r.w.s. 143(3) of the Act. 4. 320/Del/2023 for AY: 2016-17 ACIT, Central Circle-1, Gurugram Sahil Tradewell Marketing Pvt. Ltd. CIT(A)-3, Gurgaon's order dated 29.11.2022 passed in case no. 10468 involving proceedings under Section 153A r.w.s. 143(3) of the Act. 5. 321/Del/2023 for AY: 2017-18 ACIT, Central Circle-1, Gurugram Sahil Tradewell Marketing Pvt. Ltd. CIT(A)-3, Gurgaon's order dated 29.11.2022 passed in case no. 10478 involving proceedings under Section 153A r.w.s. 143(3) of the Act. 6. 3968/Del/2014 for AY: 2012-14 DCIT, Central Circle-05, New Delhi Smt. Saroj Bhatia CIT(A)-24, New Delhi's DIN ITBA/APL/M/250/2024- 25/1065646594(1) & order dated 14.06.2024 involving proceedings under Section 147 of the Act. 2. Ca....
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....s of various bank statements related to various concerns floated in the name of the appellant. The AO relied upon the decision of Hon'ble Supreme Court in the case of Mukund Ray K Shah in order to infer that the Department came to know that the appellant was providing accommodation entries consequent to search proceedings carried out. In the statement recorded u/s 131 of the Act before the AO, Shri Atul Tyagi admitted that various concerns floated by him were not carrying out any business activity, no sale/ purchase were being made through such concerns. During demonetization period (08.11.2016 to 30.11.2016), he accepted that he used to deposit cash from different persons in his bank accounts and transfer the same to such persons through RTGS/Cheques/NEFT after charging his commission. The AO had made analysis of various concerns floated by him for this purpose wherein cash has been deposited during Demonetization period. The AO has shared information in respect of the beneficiaries with their respective AOs for taking action as per provision of the Act In such cases. It is relevant to mention here that the appellant vide letter dated 08.06.2017 has declared unaccounted income....
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.....08.2021 and 18.11.2022 at the e-mail address provided in Form- 35. However no compliance was made by the appellant. Keeping in view such facts the various grounds of appeals are adjudicated after considering the material on record. From the assessment order it is observed that substantive additions were made by the AO in the case of Shri Atul Tyagi on account of commission income earned by the appellant by providing bogus accommodation entries for various assessment years. The AO further made the above additions on account of bogus accommodation entries in the case of the appellant on protective basis. The appellant is one of the companies run by Shri Atul Tyagi who was the director. It has been admitted by Shri Atul Tyagi in his statement recorded u/s 131 of the Act under oath on 10.04.2017 and 09.08.2018 that he has been operating all the bank accounts in his name or his family members or other concerns where he was the director including the appellant. It was explained by him that names of his family members and other companies including the appellant have been used by him whereas they do not have any relation with such accounts. The AO has also held in his order that ....
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....tional income by various beneficiaries who have taken such accommodation entries from the appellant and whose particulars have been given by the AO in the assessment order. The appellant could not explain genuineness of such transactions carried out by him through various concerns floated by the appellant with various beneficiaries. The onus was upon the appellant to substantiate genuineness of business activities carried out by him through various prap concerns in his name. Such onus has not been discharged The findings of the AO have been independently corroborated with the admission made by the various beneficiaries. The appellant during the appellate proceedings did not make any submissions in support of various grounds of appeals taken against the quantum addition made. Keeping in view above facts and discussion, it is found that there is merit in the findings of the AO that the appellant has been in the business of providing accommodation entries and has earned unaccounted commission. The rate of commission adopted by the AD was on the basis of statement of various beneficiaries who have stated that Shri Atul Tyagi has taken commission @ 10% to 12% against such accom....
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.... admitted in his statement under Section 131A of the Income Tax Act, 1961 that he was working as Accommodation entry provider under various firms in the name of his family members. 4.1.3 In Ground No. 3, the appellant has contended that the amount of Rs. 3,12,47,867/- han already been added to the income of husband of Assessee on SUBSTANTIVE basis resulting into double taxation. 4.1.4 In Ground No. 4, the appellant has contended that the Assessing Officer has made additions which are not correct on the basis of facts and records available. 4.1.5 In Ground No. 5, the appellant has contended that on the basis of above grounds addition of income made in the income of the Assessee for A.Y. 2013-14 may kindly be deleted. 4.1.6 In Ground No. 6, the appellant has contended that alternatively the case of the Assessee may kindly be adjourned sine die till the case of husband of Assessee Mr. Ram Prakash Bhatia is decided. 4.1.7 Since Ground Nos. I to 6 deals with similar issues, all the grounds have been adjudicated together in the following paras. 4.1.8 A survey u/s 133(A) was carried out on appellant's husband Sh. Ram Prakash Bhatia....
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....tisfactory. He did not submit any documentary evidence explaining the linkages of amounts withdrawn from one bank account and subsequent deposits in other bank account. It is also not known as to whether the same cash which was withdrawn from one bank account has been deposited in other bank account or was handed over to some other party as part of accommodation entry business. The appellant's husband could not provide the names and addresses of the entities, whose cash was apparently deposited in this bank account. In view of these findings, the CIT(A) decided that the Assessing Officer did not commit any error in considering the cash deposited in the bank account amounting to Rs. 8,71,25,010/- as unexplained cash credit u/s 68 of Income Tax Act in the hands of Sh. Ram Prakash Bhatia on substantive basis. Herein, total deposits of Rs. 8,21,25,010/- included amount of Rs. 3,09,83,921/- which was deposited in Appellant's account. 4.1.13 Since, this issue has been considered in the appellate order of appellant's husband Sh. Ram Prakash Bhatia by the CIT(A). Since the very source of such cash which was deposited in this bank account is not known, it was considered....
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....,72,516/- as commission has been added to the income of the appellant on protective basis. Appellant has also submitted that there is a computation mistake in calculating commission, which is considered correct. The issue of commission was also agitated before CIT(A) in the case of appellant's husband and after considering all aspects, CIT(A) confirmed the addition on account of commission in the hands of the appellant's husband. 4.1.16 As held in previous paras, it will not be appropriate to continue with the protective addition when the substantive addition has already been confirmed in the hands of appellant's husband at first appellate stage. In view of the discussion in the above paragraphs the additions made by the Assessing Officer on protective basis are deleted. Accordingly, Ground Nos. 1 to 6 of appeal are allowed." 6. It is in this factual backdrop that learned CIT(DR) vehemently argues that both the CIT(A) herein have erred in law and on facts in deleting the corresponding protective additions despite the fact that they had been rightly made in these twin assessees' hands. And that hon'ble apex court in Lalji Haridas Vs. ITO (1961) 43 ITR 387 (SC....