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TMI Blog2024 (12) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... aining addition and sustained 0.30%. There is no need to interfere with the same. Besides, the Revenue s contention that the Settlement Commission Order is relied upon, but the fact remains that the ld. CIT(A) has given independent finding relating to the assessee s case and, therefore, there is no need to interfere with the findings of the ld. CIT(A). Appeal of the Revenue is dismissed. - Ms. Suchitra Kamble, Judicial Member And Shri Makarand Vasant Mahadeokar, Accountant Member For the Assessee : Shri Tushar Hemani, Sr. Advocate with Shri Parimalsinh B Parmar, AR For the Revenue : Shri RN Dsouza, CIT. DR ORDER PER SUCHITRA KAMBLE, JM: The captioned appeal has been filed at the instance of the Revenue against the order dated 27.10.2023 passed by the Learned Commissioner of Income Tax (Appeals), Gandhinagar, arising in the matter of assessment order passed under s. 143 r.w.s 147 of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2013-14. 2. The assessee has raised the following grounds of appeal: 1. The Ld. CIT (A) has erred in law and on facts in restricting the disallowance made on account of unexplained bank deposit and withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame which was stated as accommodation entries provided. The statement u/s 131 of Act was also taken as mentioned in assessment order. During the search proceedings, statement of Sanjay Tibrewal was recorded under Section 132(4). The Assessing Officer further observed that the inquiry report of the ADIT (Inv.) Unit 1(2) Ahmedabad found that the assessee company has taken accommodation entries totaling the tune of Rs. 88,83,16,516/- (credit and debits) for A.Y. 2013-14, and that such amounts are non-genuine entries entered in the books of accounts. Therefore, the Assessing Officer observed that the assessee company has taken accommodation entry of Rs. 88,83,16,516/- from entity controlled by Sanjay Tiberewal. The Assessing Officer further observed that the assessee has not submitted any document including cash flow statements, bank account statements etc. to substantiate its assertions. Thus, the Assessing Officer held that these entities are paper concerns and engaged in providing accommodation to various unrelated concerns. No underlying business activity has been carried out against the bank transactions made by these entities/ST Group with various entities bogus sales/purchases, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same was decided and final assessed income was at loss Rs. (-) 86,33,417/-, and thereafter, the case of the assessee was reopened vide notice u/s 148 dated 21-03-2020. He submitted that the case was reopened on the basis of search action on Sanjay Govindram Agrawal (Sanjay Tibrewal ST ) on 12-04-2019 wherein ADIT (Inv) Unit-1(2), Ahmedabad observed that ST was in the business of providing accommodation entries and based on the inquiry report of ADIT, (Inv) Unit-1(2) and assessee took accommodation entries totaling to tune of Rs. 88,83,16,516/-. It was also submitted by the ld. AR that the Assessing Officer, while reopening the case, relied on letter of DDIT (Inv.) Unit 1(2), Ahmedabad dated 14-03-2020, date wise transaction details bank statement, and statements of Shri Sanjay Tibrewal, Shri Pradeep Agrawal, Shri Harish M. Purohit, Shri Hasmukh Purohit, Ms. Alpa Shah, Ms. Jigna Shah Sandeep Parmar, Shri Vivek Agrawal, Shri Nitantan Makwana, and Shri Pradeep Agrawal. The Ld. AR also submitted that the Assessing Officer, except reasons for reopening, not provided any document/evidence/statement; and merely relied upon and acted upon borrowed information from DDIT (Inv) Unit- 1(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Commission (ITSC) for AY 2006- 07 to AY 2012-13 in the case of M/s Pradip Overseas Ltd. (Main beneficiary of the circular trading of the same group) and placed reliance on order of Hon'ble ITAT Ahmedabad vide order dated 16-09-2021 in the case of Pradeep overseas Ltd. for AY 2013-14 confirming the modus operendi of circular trading, disregarding alleged addition of accommodation entries by Income tax department and made addition of transaction charges / brokerage as expenses incurred for circular trading. The Ld. AR submitted that, in spite of the above, the Assessing Officer disregarding the above facts and circumstance, without providing evidences on which the case was reopened and, merely on the borrowed information, made addition of total deposits of cheques issued by the assessee to ST group of Rs. 33,26,16,516/- and total cheques issued by ST group to the assessee of Rs. 55,57,00,000/-, totaling to Rs. 88,83,16,516/- as unexplained cash credit u/s 68 of the Act vide order u/s 147 of the Act dated 29-09-2021. The ld. AR relied upon the order of the ld. CIT(A), more particularly paragraph Nos. 5.7 to 5.10 of his order. 7. We have heard both the parties and perused all th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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