9911796707
TMI Blog2012 (10) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... aised three grounds of appeal and one additional ground. The sum and substance of the grievance of the assessee is that the assessee is not engaged in providing accommodation bills/entries and the business income of the assessee is from normal trading business and therefore returned income should have been accepted. 3. Facts giving rise with the above reason relate to a search/survey operation which was conducted in the case of Shri Pravin Kumar Jain group and persons/entities connected with him on 31.3.2008. Shri Pravin Kumar Jain and his wife Smt. Jyoti Pravin Kumar happens to be the Director of the appellant company. During the course of search proceedings, statement of Shri Pravin Kumar Jain have been recorded u/s. 132(4) of the Act. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same. 8) Shah Industries 9) H. Vinay & Co. 10) New planet Trading Co. Pvt. Ltd. 11) Diamond Star 12) Kanak Gems 13) P.P. Impex 14) N.R. Corporation Ans. In the above company names I have been giving accommodation bills in the years 2003,2004 and 2005 to various parties like Arihant Corporation, Antrix Diamond, Jaypee Textile, Tirupati Synthetics etc. Gosalia Diamond, Mumbai. All this transaction were made through following banks: 4) A.P. Mahesh Co.Op. Bank Bhuleshwar, Mumbai 5) ABN AMRO bank-Fort, Mumbai 6) Union Bank of India, Kalbadevi, Mumbai The a/c Nos are not in my memory right now, I will furnish in two days time. 4. After going through the above statement, the AO concluded that the assessee is also engaged in the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues, bank statements , not a single document was found which pertained to the assessee company. The Ld. Counsel further submitted that in its statement Shri Pravin Kumar Jain accepted that he has been giving accommodation bills in the year 2003, 2004 and 2005 to various parties whereas the assessee company was incorporated on 30.3.2007 which means that even when Shri Pravin Kumar Jain was engaged in such activity . The assessee company was not even in existence. The Ld. Counsel concluded that as the assessment has been made without any material evidence brought on record by the AO, the Ld. CIT(A) grossly erred in confirming the assessment order. Per contra, the Ld. DR supported the finding of the lower authorities. 7. We have heard the riv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no incriminating material from any of the parties having dealings with the assessee company were either brought on record or were available to substantiate the allegation of providing accommodation bills, only because one Shri Pravin Kumar Jain in his statement has accepted of providing accommodation bills cannot ipso facto make the assessee company also to be engaged in the same kind of business. We have also perused the audited statement of accounts filed by the assessee. On a careful consideration of the balance sheet, we find that there are unsecured loans to the tune of Rs. 8,01,00,000/-. The genuineness of which has not been doubted by the AO. Under the head 'Current assets" Loans and advances, there is an item of VAT receivable amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. As the returned income has been accepted, the additional ground raised by the assessee for allowability of expenses against commission has become infructuous, therefore need not be adjudicated separately.
9. In the result, the appeal filed by the assessee is allowed in the manner aforesaid.
ITA No. 6038/Mum/2011
9. At the time of hearing, Ld. AR submitted that relevant facts and substantive grounds are identical to the facts of appeal in ITA No. 6035/Mumn/2011 for A.Y. 2008-09 but the quantum may differ , on similar lines, similar reason in this appeal, therefore, the appeal filed by the assessee in ITA No. 6038/M/11 for assessment year 2008-09 is also allowed.
10. In the result, the appeals filed by the assessees are allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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