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TMI Blog2025 (4) TMI 1297X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, Ld. CIT(A) has erred in restricting the addition of unexplained transaction to 5 percent, i.e. Rs. 14,98,500/- as against addition of Rs. 2,99,70,000/- even after accepting the fact that the parties M/s. Green Traders, Shri Jitendra R. Patel, Mahesh P. Gandhi etc. were clearly involved in providing accommodation entries from bank accounts from entities controlled and managed by them and that the appellant had received cheques from these parties." IT(SS)A No. 153/Ahd/2023 "In the facts and on the circumstances of the case, Ld. CIT(A) has erred in restricting the addition of unexplained transaction to 5 percent, i.e. Rs. 4,39,525/- as against addition of Rs. 87,90,500/- even after accepting the fact that the bank account of M/s. SVP Corporation (Prop. Sh. Vishal D. Pandya) was used by Sh. Pandya And Sh. Bharat Popat for providing accommodation entries and that the appellant had received cheques from these parties." 3. The brief facts of the case are that the assesses is a wholesale and retail trader of bullion. The assessee has filed his original return of income for the under consideration as on 31.07.2017 declaring total income of Rs. 15,66,390/-. Thereafter, the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action was carried out at the premises of assessee wherein tally data was found from which it was found that assessee has made sale of bullion to Green Traders for Rs. 1,46,15,000/-. Similar transaction of Rs. 3,05,000/- was also carried out by Shri Jitendra Patel with assessee. 10. During the course of assessment proceedings, the assessee had submitted details of stock and contended that it has already offered such amount as sales and regularly complied with requirement of laws like Gujarat VAT Act. The Assessing Officer had not accepted the explanation of assessee and relied upon investigation report wherein it was found that cash were collected from various persons by Shri Sanjay Soni and others and were deposited in various dummy accounts with Axis Bank and part of such amount was ultimately transferred to assessee hence such amount is treated as unexplained credit under Section 68 of the Act. 11. With regard to the addition of Rs. 1,50,50,000/- is concerned, the AO had received information from Insight Portal wherein it was noticed that Shri Mahesh Prabhudas Gandhi, proprietor of DPS Commodities had made huge cash deposits during post-demonetisation period and part of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned credit under Section 68 of the Act. 14. The Ld. CIT(A) relied on the decision of Hon'ble Ahmedabad ITAT in the case of Shri Ankesh Kumar Bachubhai Gandhi in ITA No. 396/Ahd/2O22 dated 24th February, 2023 wherein it is held as under: "3. The assessee is dealing in Gold and Silver in wholesale and retail market in the name of Vimlachal Jewels. The assessee filed return of income ITA No. 396/Ahd/2022 Shri Ankeshkumar Bachubhai Gandhi vs. ITO Asst. Year-2017-18 for A.Y. 2017-18 on 01.10.2017 declaring total income at Rs. 2,95,250/-. Notice under Section 143(2) dated 21.08.2018 was issued and served upon the assessee. The Assessing Officer observed that in respect of availment of accommodation entry amounting to Rs. 31,81,000/- by the assessee through the concern M/s. SVP Corporation, controlled and managed by Shri Vishal Dipakkumar Pandya/Bharat Popat as received the said amount by way of accommodation entry, therefore, the sale concerned. In response to the same show-cause notice the assessee submitted that the assessee do not take any accommodation entry during the year from Shri Vishal D. Pandya/Bharat Popat but the amount of Rs. 31,81,000/- was received from SVP Corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is held as under: "9.5 From the above, we note that the provisions of section 68 of the Act can be attracted where there is a credit found in the books of accounts and the assesses failed to offer any explanation or the offer made by the assessed is not satisfactory in the opinion of the assessing officer. The assesses has explained to the authorities below that the impugned amount represents the sale which has not been doubted by the authorities below. Thus in our considered view, the impugned amount cannot be treated as unexplained cash credit under section 68 of the Act merely on the ground that the assesses failed to furnish the details of the existence of the parties." 16. It is an undisputed fact that the assessee had made sales to SVP Corporation which was already offered to tax. On this issue, we rely to decision of the Hon'ble Ahmedabad ITAT in the case of Vishal Exports in ITA No. 1684/Ahd/2004, dated 7th August, 2009 as affirmed by the Hon'ble Jurisdictional High Court of Gujarat in Tax Appeal No. 2471 of 2009, dated 3rd July, 2012. The relevant part of the order is as under: "The assessee had made export of goods to M/s Arina worth of Rs. 70,00,000/- in the A. Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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