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TMI Blog2023 (8) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of Shri Rashmikant K. Jhaveri available and the AO has accepted this contention. We are of the considered view that when it is proved on record that as per entries recorded in the bank account of the assessee maintained with Jammu Kashmir Bank and Axis Bank the assessee retained 3% which fact is also admitted by trustee of M/s. Navjeevan Charitable Trust there is no question of accepting the contention of the assessee that commission should be reduced to 0.25%. Assessee failed to prove on record that it has retained only 0.25% and transferred the remaining amount to other persons. There is not an iota of this fact on record. It is nowhere case of the assessee that he has paid the balance amount in cash or otherwise to the other three persons involved in the business of providing accommodation entries. We are unable to agree with the contentions raised by the Ld. D.R. for the Revenue that the addition @ 100% be made and at the same time we are also unable to agree with the contentions raised by the assessee that addition on account of commission qua accommodation entries on the amount be reduced from 3% to 0.25%. CIT(A) has passed a well reasoned order based on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting material (b) Without having jurisdiction to the assessing officer as no opportunity of being heard u/s 127 of the act was granted to the appellant. (c) Without appreciating the fact that order was passed on the basis approval granted u/s 153D in a routine manner. (d) Without granting a copy of the statement recorded on 14.01.2015 and thereby violating natural justice. (e) Without granting a copy of satisfaction note recorded by the AO 3. (a) In the facts and circumstances of the appellant's case and in law, the learned CIT(A) erred in computing Commission of Rs. 12,16,813 @ 3% of Rs. 4,20,93,787 by considering single layer for commission ignoring the fact that there are at least three layers, the Trust, the accommodating party and the agent. (b) The learned CIT(A) also erred in taking total deposits of Rs. 4,20,93,787 into bank for computing the commission ignoring the fact that bank deposits also include deposits for which income has been offered to tax and for which complete details were submitted. Grounds of Revenue s appeal (ITA No. 3243/M/2022) 1. Whether on the facts and circumstances of the case and in law, the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 68 of the Act. 4. The assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has partly allowed the same. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) both the assessee as well as the Revenue have come up before the Tribunal by way of filing the present cross appeals. 5. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. Grounds No. 1 2 of Assessee s appeal bearing ITA No. 3060/M/2022 6. During the course of argument the Ld. A.R. for the assessee has not preferred to press these grounds, hence the same are determined against the assessee. Ground No. 3 of Assessee s appeal bearing ITA No. 3060/M/2022 Grounds No. 1 2 of Revenue s appeal bearing ITA No. 3243/M/2022 7. Undisputedly aforesaid respective grounds raised by the assessee as well as the Revenue pertain to addition of Rs. 5,91,45,787/- qua the amount deposited in the bank accounts of the assessee added as unexplained deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee by returning following findings: 14.15 In this regard, on verification of the transactions made with Jammu Kashmir Bank, it is seen that, the AO had made addition of all entries appearing at credit side of bank account for the year under consideration. During the appellate proceedings the appellant has submitted all the relevant documents on transactions made in bank account with Jammu Kashmir Bank. The entries of Rs. 5,00,000/- and Rs. 6,00,000/- are appearing at the credit side of bank account transaction dated 24.03.2012 under heading as Outward clg . in this regard, the relevant portion of the submission made by the appellant is reproduced as under for the sake of clarity: Clarification regarding amount received from Mr. Yusuf Memon in the matter of appeal filed against order passed U/s 143(3) r.ws. 153C Assessment year-12-13 Please refer the discussion appellant had with your honor regarding the amount received from Mr. Yusuf Memon during the year. In this connection, appellant submits that appellant was having an office in the building known as Rock Avenue. Mr. Yusuf Memon was also having an office in the same building. Since appellant's office was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng in the credit side of the bank account under the heading as transferred . The assessee has been able to explain that aforesaid Rs. 3,00,000/- was transferred from current account of the assessee namely Modi Trading to saving account with Jammu Kashmir Bank. Likewise Rs. 1,00,000/- was received on account of refund of the security deposit of rental premises. Thus aforesaid transaction of Rs. 15,00,000/- got duly explained, hence rightly deleted by the Ld. CIT(A). 12. So far as second and third questions framed in the preceding para No. 8 for determination as per grounds raised by the Revenue as well as the assessee respectively are concerned, the Ld. D.R. for the Revenue contended that the entire amount of Rs. 4,20,93,787/- was required to be confirmed as the assessee has failed to prove the genuineness and creditworthiness of the transactions qua the aforesaid addition. To determine this issue when we peruse the assessment order passed in this case it is categoric case of the AO that the assessee is one of the persons who had provided accommodation entries to M/s. Navjeevan Charitable Trust through various parties and originally made addition of Rs. 5,91,45,787/- which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vider and on the basis of this finding the Ld. CIT(A) proceeded to make the addition of Rs. 12,62,813/-. All these facts have been duly admitted by the assessee during recording of his statement by virtue of question No. 9 to 13 available at page 20 to 22 of the paper book, which got further corroborated from copy of ledger account maintained by the Bank of Jammu Kashmir. 16. Moreover, when we examine the entries of credit recorded in the account of the assessee there is clear round tripping of the amount deposited in his account which cannot be considered as loan by any stretch of imagination because credited amount is repaid to the other parties within days, the assessee being an accommodation entry providers. Otherwise in case of a loan the amount is ordinarily not returned to the creditor within few days. 17. Moreover, these facts got duly proved from the assessment order passed in case of Shri Rashmikant K. Jhaveri wherein he has admitted that he has paid commission @ 0.25% to the assessee. These findings have been recorded in the assessment order of Shri Rashmikant K. Jhaveri available at page 27 to 31 of the paper book and the AO has accepted this contention. 18. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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