2019 (6) TMI 1754

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....y the assessee are as follows: 1. That on the facts and circumstances of the case the ld. CIT(A) erred in deleting the addition made towards bogus sundry creditors of Rs. 18,03,16,081/- and adopting only commission income thereon when it is clearly mentioned in the assessment order that the amount is being added on protective basis. 2. That on the facts and circumstances of the case, without prejudice to Ground no. 1, the ld. CIT(A) was not justified in deciding the rate of commission for providing accommodation entry to be taken at 0.25% without specifying the basis of arriving at such figure. 3. That without prejudice to the above, on the facts and in the circumstances of the case, the ld. CIT(A) erred in not sp....

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....s providing accommodation entries to some other beneficiary company and getting some commission from them or 2) the proprietary concern is getting accommodation entries from other related companies to prove genuineness of his business and adjusting other income like income from commodity trading or 3) he himself is directly/indirectly connected with any other company / entity / concern which is getting benefitted by this accommodation entries. In the instant case M/s. MSP Metallics Ltd. or Amit Enterprises may be the beneficiary or the assessee himself. The assessee may also be a small part of layering connected with money laundering of some company or group of companies which requires accommodation entries to prove genuineness of their tra....

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....e sales & purchase of the goods. Hence it is a contrary stand taken by the A.O. We note that during the appellate proceedings, the assessee submitted that Shri Arun Kumar Tekriwal, the proprietor of M/s Amit Enterprise is also assessed under section 143(3), where the A.O has accepted the Sales, hence it is conflicting stand taken by the A.O by making protective addition. We note that it is also evident from the assessment order, that the purchase and sales transactions were made on credit by the assessee and the closing balance of the sundry debtors and sundry creditors were standing in the books of the assessee. Also no payments were made or received out of these balances. We note that ld. CIT(A) has rejected the books of accounts of the a....