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TMI Blog2018 (11) TMI 1775X X X X Extracts X X X X X X X X Extracts X X X X ..... ground raised by the revenue that CIT(A) has not given any opportunity to the Assessing Officer to raise any objection against the admission of additional evidence is without any merit. Since the Ld. CIT(A) has deleted the addition on the basis of remand report of the Assessing Officer wherein he has accepted the contribution towards time membership and the share application money as genuine, therefore, in absence of any contrary material brought to our notice by the Ld. Dr we do not find any infirmity in the order of the CIT(A) in deleting the addition made by the Assessing Officer on account of time membership, commission for arranging the accommodation entries and the share application money. The grounds raised by the revenue are accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, the assessee filed its reply from time to time. Notice u/s 133 (6) were sent to the four companies parties who had given time share money of ₹ 10 lacs each to the company M/s. LR Finvest Private Limited to file confirmations alongwith copy of their ITR, balanceshseet, P& L account and bank statement in respect of the said transaction. The assessee was also asked to file the confirmations alongwith copy of ITR, Balance Sheet, P & L A/c and Bank Statement in respect of the parties/ companies M/s. Lunar Gold International Pvt. Ltd. M/s.Blue Bell Finance Ltd. M/s. Edoptica Developers and M/s. Yuvraj Exports Pvt. Ltd. who have applied for Time share Membership in the company. In response to Notices u/s 133 (6) no reply was received fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h reference to transaction in respect of time share money amounting to ₹ 40,00,000/-, the Assessing Officer treated the same as unexplained cash credit under the provisions of Section 68 of the I. T. Act, 1961. Considering, the role of intermediaries with the entry provider, he adopted the rate of commission paid by the assessee (beneficiary) @ 2% of the amount of accommodation entry and added an amount of ₹ 80,000/- being commission paid out of undisclosed sources. 6. The Assessing Officer also made addition of ₹ 90,10,000/- being the amount received from the following seven parties from whom the assessee has received share application money / securities / premium during the year in absence of furnishing of the requisite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax and shown in their books of accounts. The AO is satisfied that all the share application money / time membership fees paid by the four companies of ₹ 10,00,000/- each and 90,10,000/- of share application money given by to seven persons are satisfactorily paid out of their bank account and returns have been filed. There is no bogus cash credit entry provided by these persons,, therefore, the AR argued that the addition made by the AO of ₹ 1,30,90,000/- is not proper and justified. Therefore, after M/s L.R Finvest (P) Ltd. Appeal No. 405/2013-14 A.Y, 2011-12 verifying the remand report and examining the evidences produced by the AR, I found it fit to delete the addition of ₹ 1,30,90,000/-. 8. Aggrieved with such ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case & in law, the Ld. CIT(A) has erred in deleting the additions of ₹ 80,000/- made by AO on account of unexplained commission. 6and in law. That the order of the Ld. CIT(A) is erroneous and is not tenable on facts . 7. That the grounds of appeal are without prejudice to each other. 8. That the appellant craves leave to add, alter, amend or forego any ground(s) of the appeal raised above at the time of the hearing." 9. We have heard the Ld. DR and perused the material available on record. We find the Ld. CIT(A) deleted the addition on the basis of remand report given by the Assessing Officer wherein the Assessing Officer recorded the statement of the four contributors who had contributed towards time membership. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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