9911796707
TMI Blog2024 (9) TMI 1701X X X X Extracts X X X X X X X X Extracts X X X X ..... panies through which accommodation entries were being provided and the appellant company was one of such shell concerns. Further the beneficiaries of such accommodation entries were also identified and information to their respective AOs was also disseminated as mentioned in the assessment order as well as the remand report. CIT(A) held that as far as charging of commission is concerned in the case of the assessee, it has been held by the AO in the assessment order that Sh. Anand Jain and Sh. Naresh Jain were entry operators who were managing and controlling various shell concerns including the appellant for providing accommodation entries in lieu of commission and taking that logic there is no question of charging of commission income in the hands of the appellant company arises, since nothing has been earned by the company, being the shell concern. Since, the commission already stands taxed in the hands of the entry operators in their individual capacity, no separate commission can be charged in the hands of the pass through/ companies floated by the entry operators. As the assessee is found to be one of such pass-through entity, we decline to interfere with the order of the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the learned CIT (A) has erred both on facts and in law in rejecting the contention of the assessee that the order passed by the learned Assessing Officer (AO) under section 143(3) read with section 153C is without jurisdiction. 3. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in rejecting the contention of the assessee that the proceedings initiated under Section 153C and the assessment framed under section 153C is bad and liable to be quashed in the absence of any satisfaction being recorded by the AO of the searched person that the incriminating material belonging to the assessee was found during the course of the search. 4. On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in rejecting the contention of the assessee that the order was passed by the learned Assessing Officer (AO) without disposing off the objections raised by the assessee company against the satisfaction note recorded. 5. (i) On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in rejecting the explanations and evidences brought on record by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on commission basis, to various beneficiaries. The above captioned assessee is one of the entities/ concerns through which money/transactions have been routed/passed through before providing accommodation entries to the real beneficiaries. The assessee was used as an intermediary through which money/transactions had been routed/passed through for providing accommodation entries to beneficiaries. The AO after holding the assessee as conduit concern of Shri Anand Kumar Jain and Shri Naresh Kumar Jain, Entry Operators, assessed the entire bank credits of Rs. 5,06,28,300/- Rs. 8,62,00,764/- Rs. 4,06,67,346/- and Rs. 16,91,50,500/-of the assessee as unexplained under section 68 of the Act, in the hands of the assessee on protective basis, in AYs 2012-13, 2013-14, 2014-15 & 2017-18 respectively. The AO, in para 10 of the assessment orders, has categorically mentioned that the information relating to beneficiaries have already been passed on to the respective AOs of all the beneficiaries for doing needful at their end. Further, the AO worked out commission income @ 0.25% of the abovementioned bank credits of Rs. 5,06,28,300/- Rs. 8,62,00,764/- Rs. 4,06,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ratio of the ld. CIT(A). The ld. CIT (A) held that the AO in the assessment order has claimed to have identified the names of beneficiaries and already disseminated the information to the assessing officers of the beneficiaries and hence the credits received by the appellant cannot be treated as unexplained credit in its hands since, the said transactions are mere arrangement of funds/routing of unaccounted income of the beneficiaries to whom the said funds were transferred through the bank of the appellant company in lieu of commission. The ld. CIT (A) has also made note of the beneficiaries of the entries given by the assessee company. For the sake of ready reference, a few entries and the beneficiaries are reproduced below: ...... ...... 13. From the above, the ld. CIT (A) held that the assessee company has received funds from various concerns as mentioned above and thereafter amounts were transferred to the above-mentioned companies/concerns immediately, thus the appellant company is not beneficiary company. The ld. CIT (A) also obtained the remand report from the AO and held that the AO has verified the fund flow statement depicting the source of funds and utilizat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
