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TMI Blog2022 (11) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Revenue authorities have failed to find any defect in such details. In the past for AY 2013-14 assessee s case was assessed u/s 143(3) of the Act and the assessee has not been held to be entry provider but has been assessed to be engaged in business of share investment. This plea of ld. D/R that most of the companies are having meagre income and no source of funds is also not correct as in the case of P G Industries Ltd., returned income is 1.14 Cr. and in case of Priceless Overseas Ltd., returned income is 59.97 lakh. It is also not in dispute that the assessee has requested for cross examination but no such opportunity was provided to the assessee to cross examine Mr. Mahendra Sethia who claimed to have been managing the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred by 136 days. Condonation application has been filed by the assessee. After perusing the same, I find force in the reasons mentioned therein and are satisfied that the assessee was prevented for reasonable cause in filing the instant appeal within statutory time limit. I, therefore, condone the delay and admit the appeal for adjudication. 3. Brief facts of the case are that the assessee is a private limited company engaged in business. Income of Rs. 13,350/- declared in the e-return filed on 19.01.2018. Case selected for scrutiny through CASS followed by serving of notices issued u/s 143(2) & 142(1) of the Act. Reasons for selection for scrutiny on complete basis was due to high-risk transactions carried out by the assessee in the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad and illegal and in view of the facts and in the circumstances it may be held accordingly. 2. For that in view of the facts and in the circumstances the Ld. CIT(A) was wholly unjustified in affirming the action of AO in treating the transaction between the appellant and other related concerns as accommodation entry and treating the appellant as alleged accommodation entry provider merely on the basis of assessment made in case of such other persons and such action of the AO was without any tangible material and merely on incorrect assumption and presumption and in view of the facts and in the circumstances it may be held accordingly. 3. Without prejudice to Ground No. 2 above, the Ld. CIT(A) was wholly unjustified in affirming the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial statements as well as the assessment order of the assessee company for AY 2013-14 framed u/s 143(3) of the Act wherein the Department has not treated the assessee as an accommodation entry provider/shell company and the assessee is assessed to be one engaged in the business of share investment. 7. Per contra, ld. D/R referred to a chart containing the details of various companies with whom the assessee has transacted during the year and stated that most of the companies are located at the same address and common Directors, majority of companies have very low income and Auditor of all these companies is same. 8. I have heard rival contentions and perused the records placed before me. Through this appeal, the assessee's contention a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year as well as the amounts transferred to other companies has been filed by the assessee. Revenue authorities have failed to find any defect in such details. In the past for AY 2013-14 assessee's case was assessed u/s 143(3) of the Act and the assessee has not been held to be entry provider but has been assessed to be engaged in business of share investment. This plea of ld. D/R that most of the companies are having meagre income and no source of funds is also not correct as in the case of P G Industries Ltd., returned income is 1.14 Cr. and in case of Priceless Overseas Ltd., returned income is 59.97 lakh. It is also not in dispute that the assessee has requested for cross examination but no such opportunity was provided to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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