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TMI Blog2020 (2) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... olution Pvt. Ltd. 50,00,000/- 3. M/s Gajanan Realcon Pvt. Ltd. 19,00,000/- 4. M/s Garnet Textiles Pvt. Ltd. 50,00,000/- 5. M/s Shivanjali Impex Pvt. Ltd. 25,00,000/- 6. M/s Zesty Construction Pvt. Ltd. 40,00,000/- Total 2,19,00,000/- 3. Accordingly, during the assessment proceedings, the assessee company was asked by the Assessing Officer to prove the identity, creditworthiness and genuineness of the aforesaid advances. In response, the A.R of the company vide his letter dated 26.08.2014 filed confirmations of the companies from whom advances of ₹ 2,19,00,000/- have been received by the company. The A.R. of the company vide letter dated 22.09.2014 stated that during the year company has advanced a sum of ₹ 12,22,00,000/- to M/s Nidhi Promoters Pvt. Ltd. towards booking of space in a commercial building being constructed by M/s Nidhi Promoters Pvt. Ltd. in Sector-4, Dwarka, New Delhi. In turn, the assessee company has accepted advances of ₹ 11,54,00,000/- from various parties for sale of space in commercial building at Dwarka, as booked by the company. Notices u/s 133(6) of the Income Tax Act, 1961 were issued to furnish requisite de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts was revelation of a common trend wherein prior to each transaction of transfer of funds to the assessee company, these companies had received exactly same amount of funds from some other source on the same date, which was then transferred to the assessee company. iii) These companies audited by the common auditor i.e. M/s Anil Meenu & Company. iv) In compliance to notice issued u/s 133(6) of the Income Tax Act, 1961, submissions were filed on the same date i.e. 24.11.2014. v) In the statement of Sh. Vikas Kadam stated that he is director in 2 companies namely M/s Corporate Network Solution Pvt. Ltd. & M/s Gajanan Realcon Pvt. Ltd. But from ROC data he has been found directors in 6 more companies. vi) In the statement of Sh. Ankur Verma stated that he is director in one company namely M/s Artha Software Pvt. Ltd. But from ROC data he has been found directors in 11 more companies. vii) In the letter filed by Sh. Suraj Bhan stated that he is not connected with the companies in the name of M/s Maggot Impex Pvt. Ltd., M/s Rational Steel & Alloys Pvt. Ltd. and M/s Artha Software Pvt. Ltd. But from ROC data he has been found directors in 12 companies. viii) The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported by these entities, bank accounts being in entities, very low turnovers and same bank and branch of these entities. The AO has alleged that it is a case of accommodation entries in lieu of cash. 10. The ld. CIT(A) further held that, however AO has failed to bring on record any evidence of cash earning outside books of account by the assessee and its deployment back in books by way of accommodation entries as well as reasons for its refund in a very short period of time. The AO has completely ignored the refund of money received by assessee within a short period of time that too before the assessee's case was taken up for scrutiny. There is nothing on record to suggest that any search or survey was conducted on these entities resulting into any finding by the Investigation Wing or department or any statement being recorded in which these entities have accepted indulging into the business of accommodation entries. There is no evidence brought on record by AO by making any investigation or inquiries resulting into any incriminating documents or any statement being recorded in which these entities have accepted indulging in the business of accommodation entries. Narrating thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r tax evasion. He also relied on the judgment of the Calcutta High Court in the case CIT vs. L.N. Dalmia in 207 ITR 89 wherein held that for determining whether the transaction is sham or illusory or a device or a ruse, the Income-tax authorities are entitled to penetrate the veil covering it and ascertain the truth. According to the Court the authorities are entitled to look into the surrounding circumstances to find out the reality and truth and other case laws as mentioned in the assessment order. 12. Rebutting, the ld. AR argued that all the details have been given to the authorities along with copy of the bank statement, ITR, replies have been given to the notices issued u/s 133(6) of the Act and all the Directors have attended before the Assessing Officer and given their statements which proves the identity, genuineness and creditworthiness of the parties. He argued that the total amount advanced by the company for booking space in commercial building being constructed by M/s Nidhi Promoters Pvt. Ltd. in Dwarka, New Delhi was of ₹ 12.22 crores and the company has raised advances of ₹ 11.5 crores, out of which the Assessing Officer suspected only an amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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