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TMI Blog2023 (11) TMI 1142X X X X Extracts X X X X X X X X Extracts X X X X ..... nsent of both the parties, AY 2012-13 is taken as the lead case, result of which shall apply mutatis mutandis to the other two (2) AYs 2013-14 & 2017-18. 3. The sole grievance of the assessee relates to the Ld. CIT(A)'s action of confirming the addition made by way of undisclosed commission income of Rs. 2,84,000/- in AY 2012-13 [for AY. 2013-14, Rs. 87,000/- & for AY 2017-18, Rs. 1,11,600/-]. 4. Brief facts are that, the assessee is a private limited company which had filed its return of income for AY. 2012-13 on 13.03.2013 declaring total income of Rs. 770/-. Based on report of the Investigation Wing, Kolkata, the AO had gathered that the assessee had availed accommodation entries to the tune of Rs. 87,00,000/- from M/s Moonlink Dealcom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO noted that the assessee was unable to provide any evidence/details to substantiate the transactions involving sale of shares to M/s Moonlink Dealcomm Pvt Ltd and M/s Lucky Prime Commercial Pvt Ltd. According to AO, the financials of the assessee suggested that though the assessee claimed to be in business of trading in shares but neither did it hold any substantial assets nor did it ever create any wealth from such activity. Instead, the AO noted that, the assessee would report gross income in the range of Rs. 10,000/- to Rs. 20,000/- and net profit in the range of Rs. 766/- to Rs. 366/-. Having regard to these features of the assessee coupled with the information received from Investigation Wing and assessee's suo moto submission stati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. AR in his written note has submitted that, evidences were furnished in support of sale and purchase of shares and despite the same the AO had treated the assessee to be engaged in circular trading and treated 1% of total debit and credit entries in the bank statement as income of the assessee. It has been submitted that the AO ought to have enquired into the source of funds utilized to acquire the shares during the year and that the manner in which he computed the sums involved in circular trading, which action of AO according to him, was not correct. The Ld. AR, at the time of hearing however did not seriously pursue the aforesaid line of submissions. Rather he argued that, as per the report of the DGIT(Inv), Kolkata, the tainted sums w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Shri Rajesh Bhutoria (i) M/s. Moonlink Dealcomm Pvt. Ltd. of Rs. 85,00,000/- and (ii) M/s. Lucky Prime Commercial Pvt. Ltd. of Rs. 2,00,000/- (total of Rs. 87,00,000/-). Before the AO, the assessee is noted to have admitted to having conducted transactions with these two entities but it had made only general assertions regarding the nature of transactions and that these transactions were regular business dealings forming part of books of accounts. The Ld. AR was unable to controvert the findings recorded by the AO at Para 5.3 of the assessment order wherein he had observed that neither the details of purchase/sale of shares were submitted nor copies of bank statements were provided by the assessee. It is also noted that, no details/ do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the monies transacted through the two (2) entities are held to be tainted, then the company may be regarded as entity involved in providing accommodation entries thereby suggesting that it was not the beneficiary of the unexplained sum of Rs. 87 Lakhs but it was an aide who was facilitating the same and therefore only commission income could be inferred in relation thereto. If that be so, then as a natural corollary all the transactions conducted by the assessee during the year through its bank account has to be treated as accommodation entries facilitated by them. The assessee cannot blow hot and cold at the same time and assert that the sum to the extent of Rs. 87,00,000/- identified by the Investigating authorities be treated as tain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries ought not be considered. Having said so, I also find force in the Ld. DR's contention that such an exercise would remain academic in absence of the bank statement of the assessee. Hence, in the fitness of the matters, the limited issue regarding quantification of commission income is set aside back to the file of the AO with direction to the assessee to produce/furnish its bank statement for verification and quantification of debit entries for estimation of commission income. The AO shall allow sufficient opportunity and time to the assessee in this regard. In case the commission income estimated comes to a figure higher than the sum originally added or the assessee fails to provide or furnish the bank statement, then the commission i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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