TaxTMI 
TaxTMI 
2025 (11) TMI 1001
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....n from DDIT(Inv) Unit-1(3), New Delhi vide letter dated 27.03.2019, wherein it was informed that in the case of M/s MKD Construction Pvt. Ltd., it has shown nominal sales/income as compared to the high volume of cheques/cash transactions made in its bank account. It has also not shown any trade receivable, short term loans and advances, inventories, investment, capital assets or long term borrowing/short term borrowings in its Balance Sheet. He further noted that from the bank statement of M/s MKD Constructions Pvt Ltd, it revealed that transaction in the accounts is mostly in round/whole amount indicating that it might not be in regular business transaction. Therefore, M/s MKD Construction Pvt Ltd is a dummy/shell company. Based on the abo....
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....ioning any specific reason for non-submission of details particularly latest postal orders of M/s MKD Construction Pvt. Ltd. with whom it has entered into financial transactions by way of receiving financials/loans reflecting in its audited Balance Sheet. Based on the above informations, he proceeded to make addition of Rs. 1,90,00,000/- with observation that assessee has taken accommodation entry in form of purchase/investment/advance to a company which has no worth to investment. 3. Aggrieved with the above order, assessee preferred an appeal before the NFAC, Delhi and filed detailed submissions. After considering the detailed submissions of the assessee, ld. CIT (A) observed that the AO has made the addition based on the investigation....
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....atements held by the appellant. The only issue to be decided in this case is whether the appellant was beneficiary of accommodation entry from M/s MKD Constructions Private Limited or not. Even in the reasons of reopening and also in the assessment order, it is very clear that assessing officer has assess this amount on the belief that the appellant has received J 1.9 crores from M/s MKD Constructions Private Limited into Vijaya bank account. The Vijaya bank account which was submitted by the appellant before the assessing officer and also which is submitted during the present proceedings, on verification of the said bank accounts, there is a debit entry appearing in the name of M/s MKD Constructions Private Limited. It is pertinent here to....
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....he case, the Ld. CIT (A) has erred in deleting the addition of Rs. 1,90,00,000/- on account of unexplained money received from M/s. MKD Construction Pvt. Ltd. u/s 69 of the Act without considering the fact that the assessee has taken accommodation entry of Rs. 1,90,00,000/-." 8. At the time of hearing, ld. DR of the Revenue brought to our notice page 1 of the assessment order wherein AO has reproduced the detailed findings of the DDIT (Inv.) wherein it was found that M/s MKD Construction Pvt. Ltd. is a sham and bogus entity and made lot of bank transactions received and paid round about amounts and has declared only nominal income. It clearly indicates that M/s MKD Construction Pvt. Ltd. is a sham company. Since assessee has dealt with t....