TaxTMI 
TaxTMI 
2025 (8) TMI 368
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.... 722/Del/2019] With ITA Nos. 726 & 727/Del/2019 With C. O. Nos. 74 & 75/Del/2019 [Arising out of ITA Nos. 726 & 727/Del/2019] - -<br>Income Tax<br>Shri Satbeer Singh Godara, Judicial Member And Shri S. Rifaur Rahman, Accountant Member For the Assessee : Sh. Deepanshu Mehta, Adv. For the Department : Sh. Pooja Swaroop, CIT(DR) ORDER PER BENCH: The instant batch of fourteen cases involves the four assessee's herein, namely, Sh. Vinay Sharma, Sh. Dheer Chand Sharma, Sh. Guru Prasad Sharma and Smt. Geeta Sharma. The Revenues first and foremost appeal ITA No.712/Del/2019 with cross objection C.O. No.60/Del/2019 (for AY: 2011-12); and it's twin appeals each ITA No. 716 & 717/Del/2019; 721 & 722/Del/2019; 726 & 727/Del/2019 with cro....
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.... accommodation entries provided to M/s. NKG Infrastructure Limited in the form of sales; reading as under: "9. I have considered the facts and circumstances of the case, submission/rejoinder of the appellant and remand report/ order of the AO. I find that the appellant in his books of accounts has shown sale of building/earth material to M/s. NKG Industries Ltd., However, during the course of search operation on the premise of the appellant, no books of accounts, bills etc. were found. In fact, the premise was a residential premise from where no business activity was being carried out. In the case of M/s NKG Infrastructure Ltd., the AO himself treated the proprietorship concerns of the appellant as entry operators. It was mentioned....
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....cted with Sharmas on behalf of NKG and Statement of the Bank Manager of Mahamedha Urban Co-operative Bank revealed the name of "Basant Kumar" who operated the accounts of Sharmas. Handwriting expert's report also mentions of a similar handwriting found on the cheques. All these facts indicate that there was a single person or group of persons who signed the cheques for NKG,, deposited them in the bank of accounts of Sharmas and got the bearer cheques signed from Sharmas and later on withdrawn the money through bearer cheques or cash. In such cases under these facts, commission was being paid in lieu of the accommodation entries which varies person to person or transaction to transaction. However, after taking into account the relevant f....
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....e "lead" assessee Sh. Vinay Sharma herein have filed their above respective "lead" appeal and cross objections; as the case may be. 4. Learned counsel representing assessee has sought to buttress the point that once the Assessing Officer had treated him as an accommodation entry provider thereby adding all the foregoing entries as bogus, the CIT(A)'s action adding the above percentage of 2.5% representing the profit element therein, amounts to an enhancement under section 251(1)(a) of the Act which is not sustainable in law going by CIT Vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC); CIT Vs. Sardari Lal & Co. (2001) 251 ITR 864 (Del.) and CIT Vs. Union Tyres (1999) 240 ITR 556 (Del.). He therefore vehemently presses the assessee's ....
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....ry terms. 7. Next comes the assessee Sh. Vinay Sharm's cross objections C.O. No. 60/Del/2019 wherein his case is that the CIT(A)'s action directing assessment of profit element @ 2.5% amounts to an enhancement which is not sustainable in law since introducing altogether a new head of income. We find no merit in the assessee's instant former argument as what all the learned CIT(A) has done is to treat all of the assessee's foregoing transactions as bogus one being in the nature of accommodation entries which deserve to be assessed @ 2.5% only which, in our opinion, neither amounts to any enhancement nor a new head of income; as the case may be once the original disallowance/addition of the entire credit and debit side stands modified. Thi....