9911796707
TMI Blog2024 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... made. Accordingly, on merits we do not find any reason to confirm the order of the ld. AO and ld. CIT(A). Accordingly, the addition is deleted. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... hnologies Pvt Ltd Rs. 1213488/- Rs. 2025311/Rs. 2014896/- Income/ Brokerage Received Included in sale of services in P&L A/c Debit note and bank statement was attached 4. Anirudha Enterprises Rs. 5000000/- This is advance received from the party Confirmation & Bank statement was attached 5. Pioneer Investment Ltd Rs. 580980/- Income/ Brokerage Received Part of sale of services in P&L A/c Debit note and bank statement was attached 6. ADF Foods Pvt Ltd Rs. 900000/- Finance Expenses Part of financial cost Rs. 1131507/- in the P&L A/c Ledger copy & Bank statement was attached 7. Stac International Rs. 1200000/- Short term advances given Ledger copy & Bank statement was attached 8. K.Sevnatilal & Co. Rs. 5236000/- Paid for purchase of Goods Included in the purchase of P&L A/c Purchase bill & Bank statement attached 9. Sevantilal & Sons Rs. 6326000/- Received for sale of Goods Included in the revenue from operations of P&L A/c Sale bill & Bank statement was attached 10. K.Sevantilal & Co. Rs. 4400000/- Paid for purchase of Goods Included in the purchase of P&L A/c Purchase bill & Bank statement was attached Total Rs. 3,08,47,239/- 5. These details have al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced in light of the fact it is one of the entity involved for accommodation entry by Shri Hasmukh Mehta. 5 Pioneer Investment Ltd 580980 The assessee is showing the same as income and furnished a copy of debit note towards brokerage for arranging various transactions Le. purchase of coupon bonds and bank statement was provided. However huge transactions with top financial institutions appear as per debit note on which brokerage was charged by assessee, however the same are without any proper evidences. Hence, the same is not entertained and allowable. 6 ADF Foods Pvt. Ltd 900000 Only debiting charges of Rs. 9,00,000/- and bank statement produced by assessee and no further details produced that the transaction was genuine. Hence, it can be understood that assessee had nothing to say in the matter. 7 Stac International 1200000 Only debit charged of Rs. 12,00,000/- and bank statement produced by assessee and no further details produced that the transaction was genuine. Hence, it can be understood that assessee had nothing to say in the matter. 8 Sevantilal & Co. 5236000 Only copy of confirmation letter in respect of purchase and bank statement of this party produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 3,08,47,239/- is treated as unexplained and the same is added to the assessee's income for the year under consideration. 6. The ld. CIT(A) first of all, rejected assessee's objection regarding validity of reopening u/s. 148; and on merits he has confirmed the order of the ld. AO in the following manner:- 5.3.0. I have gone through the assessment order as well as the statement of facts. During the course of appellant proceedings, the appellant has submitted that the appellant itself acknowledge Rs. 63,85,239/- is its income. In view of the above, the addition of Rs. 63,85,239/- made by the AO in respect of M/s. Pioneer Insurance, M/s Pioneer Investment; M/s. Infrasoft Technology is upheld. 5.3.1 With regard to M/s. HJ Thakkar properties and Stac International were on account of loan given by the appellant. It was argued by the appellant that the loans were received through proper banking channel and TDS was deducted and paid. Deduction of TDS is not an ingredient to decide the transaction is a genuine one or not. Even during the course of appellant proceedings also, the appellant had failed to provide the documentary evidence to show the nature of transactions and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of ledger account as well as purchase and sale invoices. For the sake of ready reference he has referred to various documents filed in the paper book with regard to transaction carried out by the aforesaid 10 parties is reproduced hereunder:- Sr No. Name of the Party Amount Nature of Transaction Reason Transaction appearing in the Bank Statement (Reference to Pages in the Paper Book) 1. Pioneer Insurance Pvt Ltd Rs. 650564/- Income/ Brokerage Received Part of Sale of services Rs. 556500/- in P & L A/c 27 & 28 2. H.J.Thakkar Properties Pvt. Ltd Rs. 500000/- Rs. 900000/- Loan given This is part payment received back from the party 30&31 3. Infrasoft Technologies PvtLtd Rs. 1213488/- Rs. 2025311/- Rs. 2014896/- Income/ Brokerage Received Included in Sale of services in P& L A/c 21,22 & 23 4. Anirudha Enterprises Rs. 5000000/- Advance Received This is advance received from the party 36 5. Pioneer Investment Ltd Rs. 580980/- Income/ Brokerage Received Part of Sale of services in P& LA/c 25 6. ADF Foods Pvt Ltd Rs. 900000/- . Finance Expenses Part of financial cost Rs. 1131507/in the P& L A/c 53 7. Stac International Rs. 1200000/- Advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingredient of unexplained cash credit. How such a nature of sales can be considered be bogus when ld. AO has not rejected the books of accounts and sales / income declared by the assessee. ii. H.J.Thakkar Properties Pvt. Ltd - Rs. 500000/- & Rs. 900000/- - From the perusal of the ledger account it is seen that assessee had given certain advances prior to 01/04/2013 and there was opening debit balance of Rs. 1,40,00,000/-. During the year assessee has received part of the amount of Rs. 29,00,000/- from the said party out of which two amounts of Rs. 5,00,000/- and Rs. 9,00,000/- have been picked up by the ld. AO to hold it to be unexplained credit. If assessee has given advance in the earlier year and part of the payment has been received back in this year then we fail to understand how it is an unexplained credit, because what assessee has received is its own advance given to the said party in the earlier years. Ld. AO has not even enquired from the said party whether any such advance was given in the earlier years. If the amount of loan given in the earlier has not been inquired or doubted in the earlier years, then return of loan in this year by the said party to the assessee c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch we fail to understand how it is to be treated as unexplained credit or unexplained transaction. The financial expenses incurred in the books cannot be recokened as credit. vii. Stac International - Rs. 12,00,000/- This is a short term advance given by the assessee to the said party and in support of which copy of ledger account and bank statement has been given where assessee has given advance on 04/03/2014 to the said parties from its own bank account. How advance given is unexpalined credit. Thus, it is not in any kind of unexplained credit received by the assessee, so as to bring in the ambit of deemed income or bogus credit entry. viii & ix. K. Sevnatilal & Co., - Rs. 52,36,000/- & Rs. 63,26,000/- These transactions are in the nature of purchase of goods by the assessee which assessee has paid for making the purchases. In support of which, assessee had produced purchase bills and the bank statement showing payment made through cheque for purchase of these goods to the said party. Nothing has been brought on record that ld. AO has carried out any inquiry or there is specific information to prove that this is some kind of bogus purchases made by the assessee, albeit it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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