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TMI Blog2024 (1) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the examination of the financials, balance sheet and bank statement, it is noted that transactions were through banking channel and these companies have sufficient financial reserves to provide the credits/ loans to the assessee company. Thus when all the details were provided and no adverse feature was noted therein, assessee has discharged the onus cast upon it. The authorities below have based these adverse orders only by making general observation and repeating that assessee did not produce the directors of these companies. Thus as assessee has discharged its onus, hence orders of authorities below are set aside. Since addition under section 68 of the Act has been directed to be deleted, the addition for commission does not survive and the same is also directed to be deleted - Decided in favour of assessee. - Shri Shamim Yahya, Accountant Member And Shri Anubhav Sharma, Judicial Member For the Assessee : Shri Rakesh Joshi, CA For the Revenue : Shri Amit Katoch, Sr. DR ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of the ld. CIT (Appeals)-28, New Delhi dated 27.09.2019 for the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot produce the Directors/Principal Officers of the said companies. Hence, AO took adverse inference and treated the transactions as liable to be added under section 68 of the Act. AO made basis of addition on the fact that assessee has not produced Directors/Principal Officers of these companies, thereafter he detailed the modus operandi of business of Praveen Kumar Jain and AO concluded that assessee has not discharged its onus and the entire amount of Rs. 1,45,00,000/- is liable to be added to the income of the assessee u/s 68 of the Act. The AO also noted that since the assessee had arranged accommodation entries of the amount of Rs. 1,45,00,000/- from Praveen Kumar Jain group of companies, the commission @ 3% of the total sum was taken by the entry providers. Hence, AO added 3% for arranging bogus transaction amounting to Rs. 4,35,000/- and added the same under section 69C of the Act. 4. Upon assessee s appeal, ld. CIT (A) considered the issue and confirmed the AO s order. While doing so, he observed that assessee company is different from public limited company. He gave various features of public limited company and found that in the case of private company like the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not applicable here. Further, ld. Counsel of the assessee relied upon several case laws as under :- (i) Pr. CIT vs. Laxman Industrial Resources Ltd. 397 ITR 106 (Delhi); (ii) CIT vs. Orchid Industries Pvt. Ltd. 397 ITR 136 (Bombay); (iii) CIT vs. Kamdhenu Steel and Alloys Ltd. 361 ITR 220 (Delhi); (iv) Shiv Dhoot Pearls 237 taxman 104 (Delhi); (v) Dwarkadhis Investment P. Ltd. 330 ITR 298 (Delhi); (vi) CIT vs. Lovely Exports (P.) Ltd. 216 CTR 195 (SC), 7. Per contra, ld. DR for the Revenue relied upon the orders of the authorities below. He submitted that assessee was requested to produce the Directors but they were not produced. He further submitted that these companies are bogus entry providing companies and whose identity, creditworthiness and genuineness was not proved. He further submitted that the financials of these companies given in the paper book submitted by the assessee do not inspire much confidence. Hence, he submitted that the orders of the authorities below need to be sustained. 8. We have heard both the parties and perused the records. We find that only three companies were noted as bogus entry providers by the Investigation Wing informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmation 6.2 Bank Statement Highlighting the transactions 6.3 Acknowledgement of return of income for the A.Y. 2008-09 6.4 Financial Statements as at 31.03.2008 6.5 Share application form and board resolution 7. Dynamic Import Exports Pvt. Ltd. 7.1 Ledger confirmation 7.2 Bank Statement Highlighting the transactions 7.3 Share application form and board resolution 8. Vibhuti Multitrade Pvt. Ltd. 8.1 Ledger confirmation 8.2 Bank Statement Highlighting the transactions 8.3 Acknowledgement of return of income for the A.Y. 2008-09 8.4 Financial Statements as at 31.03.2008 8.5 Share application form and board resolution ..... X X X X Extracts X X X X X X X X Extracts X X X X
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