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TMI Blog2021 (6) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the work carried out - there is no requirement of giving any opportunity of cross-examination of Mr Praveen Agarwal to the assessee s as the addition is not solely been made on that basis. AO has made the addition in the hence of the assessee on protective basis and the learned CIT A has confirmed the addition in the hence of the assessee on substantive basis by disallowing the expenditure, we set-aside the whole issue back to the file of AO to verify that if the addition has been made on substantive basis in the hands of PACL Ltd and assessee has already been charged tax on the income, then the addition of disallowance of the expenditure in the hence of the assessee requires to be deleted as it will amount to double addition of the same income. Even otherwise the real beneficiary of this accommodation entry is PACL Ltd. If the substantive addition has not been sustained or made in the hence of the PACL Ltd then the order of the learned CIT A deserves to be confirmed and addition is required to be made in the hence of the assessee - Appeal filed by the assessee is set-aside to the file of the learned assessing officer with above direction. - ITA No. 4937/Del/2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant hereby requests your honour to kindly quash the order as illegal, bad in law and oblige. 5) On the facts and in the circumstances of the case and in law the honourable CIT(A) erred and is not justified in confirming addition of ₹ 1,25,00,00,000/- (Rs. One Hundred Twenty Five Crore only) made by the learned Assessing Officer on the ground that the appellant has failed to establish genuineness of the development expenditure claimed and has further failed to satisfy the conditions laid down under section 37(1) of the I T Act. The honourable CIT(A) failed to appreciate the fact that the appellant had produced all the details before the learned AO and almost all payments were subjected to Tax Deducted at source and have been made by account payee cheques. The appellant hereby requests the addition may please be deleted. 6) The appellant hereby reserves the right to add, amend or delete ground/s of appeal. 3. Brief facts of the case shows that search and seizure operation u/s 132 of the income tax act 1961 was carried out on 20 June 2013 in PACL group of cases. The case of the assessee was also covered Under the provisions of Section 132 (1) of the act. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded on oath have been found during the search indicating receiving of accommodation entries by PACL Ltd and therefore the assessment is being made on the basis of the incriminating material found during the course of search and further the statement of Mr Praveen other was categorically stated that he is merely an accommodation entry provider and all the companies to whom the assessee has paid ₹ 125 crore on account of subcontracting are controlled by him. The learned AO further referred several statements recorded of the employees of Sri Praveen Agarwal who are dummy directors of those companies. Accordingly the learned assessing officer held that the payment of rupees hundred and 25 crores to the 5 Kolkata-based companies are accommodation entries provided by the assessee company to PACL Ltd. He disallowed the above expenditure paid to this company and added back to the total income of the assessee on protective basis as the assessee has merely provided a accommodation entries to PACl Ltd and substantive addition of ₹ 125 crore will be made in the hands of that company PACL Ltd. Additionally he also made an addition of commission at the rate of 0.10% amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urmises and no incriminating material has been brought on record with respect to the making this addition and therefore this addition has no legs to stand. Accordingly he deleted the addition. Thus he partly allowed the appeal of the assessee confirming the addition of ₹ 125 crores in hands of the assessee on substantive basis and deleting the addition of ₹ 1,250,000 which is merely on the basis of conjectures and surmises and without any evidences. Thus assessee is aggrieved with that order has preferred this appeal as per above mentioned grounds of appeal. 5. The above appeal has been listed for hearing on 15 December 2020 and none appeared on behalf of the assessee. On that date bench directed to issued the notice by registered post to the assessee fixing the next date of hearing on 8 February 2021. 6. On 8 February 2021 none present and for the assessee and the bench directed the registry to issued the notice by registered post by fixing the date of hearing on 13 April 2021. 7. Further on 13 April 2021 none appeared on behalf of the assessee and the bench directed the registry to the issue notice by registered post fixing the date of hearing on 9 June 2021. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of the statement of Mr Praveen Agarwal but on the part of the failure of the assessee to prove the genuineness of the work carried out. Therefore there is no requirement of giving any opportunity of cross-examination of Mr Praveen Agarwal to the assessee s as the addition is not solely been made on that basis. 11. As the learned assessing officer has made the addition in the hence of the assessee on protective basis and the learned CIT A has confirmed the addition in the hence of the assessee on substantive basis by disallowing the expenditure, we set-aside the whole issue back to the file of the learned assessing officer to verify that if the addition has been made on substantive basis in the hands of PACL Ltd and assessee has already been charged tax on the income, then the addition of disallowance of the expendi ture in the hence of the assessee requires to be deleted as it will amount to double addition of the same income. Even otherwise the real beneficiary of this accommodation entry is PACL Ltd. If the substantive addition has not been sustained or made in the hence of the PACL Ltd then the order of the learned CIT A deserves to be confirmed and addition is requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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