TaxTMI 
TaxTMI 
2026 (5) TMI 1275
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2012-13. 2. The grounds of appeal raised by the assessee are as under: "1. The ld.CIT (a) grossly erred on facts and in laws in upholding the addition made by the ld.AO, where the addition made had not been in the nature of accommodation entries. 2. Without prejudice to above. The ld.CIT (a) ought to have restrict the addition to the extent of GP rate on so called unaccounted turnover." 3. Brief facts relating to the case are that the assessee company was engaged in the business of manufacturing of Flexible Packaging bags and had filed its return of income for the impugned year i.e. A.Y. 2012-13, declaring total income at Rs. 2,22....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in appeal where the assessee reiterated that it had entered into the transaction of sale of goods with Falguni Enterprises in the preceding assessment year i.e. A.Y. 2011-12 and not in the impugned assessment year. The quantum of goods sold to Falguni Enterprises in A.Y. 2011-12, it was stated was Rs. 82.02 Lakhs and the assessee during the year had only received outstanding amount. The assessee in support of its contention furnished copy of ledger account of Falguni Enterprises in its books, bank statement of the assessee reflecting the receipts during the year as well as copy of sale bills and delivery challan of the preceding year transactions. The assessee further pointed out that the gross profits had improved from 11.9% in the preced....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e AO noted that Sri Dilip J. Shah is associated with Falguni Enterprises in whose bank account similar transactions are carried by him. During the course of assessment proceedings, the appellant though argued that amount received during the year is on account of amount receivable from Falguni at the end of last year wrt sales made by appellant with that concern, failed to furnish confirmation from either Falguni enterprises or Sri Dilip J. Shah stating that sales claims to have been made by appellant during previous assessment year are genuine sale transactions, payment made during the year is wrt actual business transactions but not accommodation entries provided by the concern. 8.5.4 It is noticed that during assessment proceedin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ne, which is about 30 kms away. Even in the lorry receipts, only "Vasai" was mentioned without exact delivery address. In absence of proper address how transporter has delivered goods to Falguni is not known. These discrepancies clearly cast doubt on the genuineness of the sales transactions claimed. 8.5.6 In absence of contemporaneous and corroborative evidences such as VAT returns, transport details, delivery challans, confirmations from the party or proof of outstanding balance carried forward, the appellant has failed to establish that the receipts of Rs. 35.75.000/- during A.Y. 2012-13 were against genuine sales of earlier year. The Hon'ble Supreme Court in CIT v. Durga Prasad More (82 ITR 540) and Sumati Dayal v. CIT (214....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of the Department, we have noted, is that the assessee was the beneficiary of accommodation entry from one Falguni Enterprises of Rs. 35.75 lacs. The nature of the accommodation entry is revealed in para 8.3 of the Ld. CIT(A)'s order wherein Shri Dilip Jayantilal Shah's statement admitted that his company was engaged in providing accommodation bills without actual trading and earning only commission income. Clearly as per the information with the Department, the assessee had availed accommodation entry by way of bogus bills/transactions entered in its books of accounts. In the present case, the assessee, we find, has categorically denied entering into any transaction of purchase/sale with Falguni Enterprises during the impugned year exce....