M/s. VRN Ceramics Limited, Sabarkantha V. The ACIT, Sabarkantha Circle, Himatnagar

ITA 1041/AHD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0612 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-08-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 26-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Accommodation entries; Prejudicial to interest
• Section: 143(3); 263; 132

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.1041/AHD/2016 / ASSTT. YEAR: 2005-2006 M/S.VRN CERAMICS LTD. CERAMIC ZONE VILLAGE DALPUR, TAL. PRANTIJ DIST. SABARKANTHA 383 120. VS ACIT, SABARKANTHA CIR. HIMATNAGAR. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI ANIL KSHATRIYA, AR REVENUE BY : SHRI SATISH SOLANKI, SR.DR / DATE OF HEARING : 12/08/2016 / DATE OF PRONOUNCEMENT: 09/09/2016 $%/ O R D E R ASSESSEE IS IN APPEAL AGAINST THE ORDER OF THE LD.C IT(A)-2, AHMEDABAD DATED 12.2.2015 PASSED FOR THE ASTT.YEAR 2005-06. 2. REGISTRY HAS POINTED OUT THAT APPEAL FILED BY TH E ASSESSEE IS TIME BARRED BY 349 DAYS. IN ORDER TO EXPLAIN DELAY, THE ASSESS EE HAS FILED AN AFFIDAVIT OF SHRI DEEPAK R. SONI, AGED 59 YEARS, CHARTERED ACCOU NTANT BY PROFESSION. THE DEPONENT HAS DEPOSED THAT ORDER OF THE LD.CIT(A ) WAS SERVED IN HIS OFFICE ON 14.3.2015. HE HAS HANDED OVER THIS FILE TO MOHM ADRIZVAN BHATT, OFFICE ASSISTANT WORKING IN HIS OFFICE. SHRI MOHMADRIZVAN WAS DIRECTED TO TRANSMIT ALL THESE PAPERS TO THE OFFICE OF MANUBHAI G. PATEL & COMPANY, CHARTERED ACCOUNTANTS AT AHMEDABAD FOR FILING SECOND APPEAL B EFORE THE ITAT. SHRI DEEPAK R. SONI FURTHER DEPOSED THAT IT WAS SLIPPED FROM HIS MIND, AND HE DID NOT RE-INQUIRE FROM SHRI MOHMADRIZVAN BHATT WHETHER HE HAS TRANSMITTED THE 2 FILE OR NOT. THE ASSESSEE CAME TO HIS OFFICE ON 16 .3.2016 WITH PENALTY ORDER. ON VERIFICATION OF THE RECORD, IT CAME TO THE NOTIC E OF THE DEPONENT THAT APPEAL WAS NOT FILED. ACCORDING TO THE DEPONENT, IT WAS F AULT AT HIS END. THE LD.COUNSEL FOR THE ASSESSEE, ON THE STRENGTH OF THI S AFFIDAVIT PRAYED THAT DELAY IN FILING THE APPEAL BE CONDONED. THE LD.DR, ON TH E OTHER HAND, CONTENDED THAT WHEN PENALTY PROCEEDING WERE GOING ON, THE ASS ESSEE MUST HAVE INQUIRED ABOUT STATUS OF THE QUANTUM APPEAL, OR IF NOT INQUI RED, THEN HE SHOULD BE VIGILANT TO INQUIRE. THERE IS NO BONA FIDE IN THIS EXPLANATION. IT IS JUST AN EXPLANATION FOR THE SAKE OF EXPLANATION. 3. I HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GON E THROUGH THE RECORD. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT TH E APPEAL IS TIME BARRED BY 349 DAYS. THE QUESTION IS WHETHER THE EXPLANATION PROVIDED BY THE ASSESSEE IS PLAUSIBLE EXPLANATION TO CONDONE THE DELAY OR NOT. TO MY MIND, A CHARTERED ACCOUNTANT AT THE AGE OF 59 YEARS, WHO HAS LONG PRA CTICE WOULD NOT LIKE TO FILE A FALSE AFFIDAVIT AND PUT HIS CAREER AT STAKE. AFF IDAVIT COULD BE FILED WHEN ERROR LIES AT HIS END. IT IS ALSO PERTINENT TO OBS ERVE THAT WHATEVER THERE IN THE HANDS OF THE ASSESSEE, IT HAS COMPLIED WITH. IF TH E TAX CONSULTANT FAILED TO PERFORM DUTY, WHATEVER MAY BE REASONS, THEN THE ASS ESSEE COULD NOT BE HELD LIABLE ON ACCOUNT OF LAPSES OF PROFESSIONALS. I CO NDONE THE DELAY. 4. I NOW, PROCEED TO DECIDE THE APPEAL ON MERIT. O N MERIT, THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.17,99,518/-. 5. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN OF INCOME ON 17.10.2005 DECLARING TOTAL INCOME AT NIL. THE A SSESSMENT ORDER WAS PASSED UNDER SECTION 143(3) OF THE ACT ON 22.3.2013 DETERMINING TOTAL INCOME 3 AT RS.5,82,894/-. IT APPEARS THAT SEARCH AND SEIZU RE OPERATION WAS CARRIED OUT UNDER SECTION 132 AT THE PREMISES OF SHANTISURI SEC URITIES P. LTD. AND PROCEEDINGS UNDER SECTION 158BC WERE INITIATED AGAI NST SHANTISURI SECURITIES P. LTD. THE AO OF THAT CONCERN HAS TRANSMITTED CER TAIN INFORMATION TO THE AO OF THE ASSESSEE AND ON THAT BASIS ASSESSMENT OF THE ASSESSEE HAS BEEN REOPENED. THE LD.AO THEREAFTER HEARD THE ASSESSEE AND PASSED ASSESSMENT ORDER ON 22.3.2013. HE MADE A PROTECTIVE ADDITION OF RS.17,99,518/-. THE DISCUSSION MADE BY THE AO READS AS UNDER: 6. THE REPLY OF TH E ASSESSEE IS DULY CONSIDERED BUT IS NOT FOUND ACCE PTABLE ON THE FOLLOWING GROUNDS: A SEARCH OPERATION WAS CARRIED OUT AT THE PREMISES OF M/S. SHANTISURI SECURITIES PVT. LTD. ON 07.02.2008. DURING THE COUR SE OF ASSESSMENT PROCEEDINGS IN THE CASE OF THIS COMPANY A STATEMENT ON OATH OF SHRI BHAVESH BHANDARI WAS RECORDED ON 08.12.2009. IN HIS STATEME NT HE CATEGORICALLY ADMITTED THAT THE PARTIES WHO HAVE ALLEGEDLY CONTRI BUTED TO THE SHARE CAPITAL OF THE COMPANY ARE EITHER BOGUS OR ARE MERE ENTRY G IVERS. IN HIS STATEMENT HE SUBMITTED THAT HE ALONGWITH HIS OTHER FAMILY MEMBER S ARE IN THE BUSINESS OF CHEQUE DISCOUNTING AND SHROFF FOR MANY YEARS IN HIM ATNAGAR. SOMETIME IN THE YEAR 2005, SOME OF HIS OLD CLIENTS WHO USE HIS SERVICES FOR CHEQUE DISCOUNTING APPROACHED HIM TO PROVIDE ACCOMMODATING ENTRIES TO THEM EITHER IN THE FORM OF SHARE CAPITAL OR AS LOANS AND ADVANCES FOR A FIXED PERCENTAGE OF COMMISSION. SINCE HE DID NOT HAVE THE CASH TO PROVIDE THE SAME, HE PURCHASED A LOSS MAKING COMPANY AND THEREA FTER HE ACCEPTED CASH FROM THESE PARTIES AND HANDED IT OVER TO THE VARIOU S PARTIES WHO HAVE DEPOSITED THE CASH IN THEIR OWN COMPANIES AND IN TU RN 'INVESTED' IN HIS COMPANY AS 'SHARE CAPITAL' OR AS 'LOANS & ADVANCES' . THIS MONEY WAS FORWARDED BY THE M/S. SHANTISURI SECURITIES PVT. LT D. AS LOANS AND ADVANCES TO VARIOUS PARTIES WHO HAVE GIVEN HIM CASH IN THE F IRST PLACE. 6.1 ACCORDINGLY AN ORDER U/S. 153C R.W.S. 143(3) OF THE I.T. ACT 1961 WAS PASSED IN THE CASE OF M/S. SHANTISURI SECURITIES PV T. LTD. ON 24.12.2009 AFTER TAKING INTO CONSIDERATION THE STATEMENT RECORDED OF BHAVESH BHANDARI ON 08.12.2009. THE ASSESSMENT ORDER PASSED ON 24/12/20 09 WAS HELD AS ERRONEOUS AND PREJUDICIAL INTEREST TO THE REVENUE A ND HENCE WAS SET-ASIDE BY THE COMMISSIONER OF INCOME-TAX-IV, AHMEDABAD BY PAS SING ORDER U/S.263 OF THE I.T. ACT DATED 26/03/2012. THE ITO, WARD-8(3) H AS PASSED THE ORDER GIVING EFFECT OF THE ORDER U/S.263 PASSED BY THE CO MMISSIONER OF INCOME-TAX- IV WHEREIN ADDITION OF RS.1,85,50,000/- BEING SHARE CAPITAL INTRODUCED 4 ALONGWITH SHARE PREMIUM HAS BEEN TREATED AS UNEXPLA INED CASH CREDIT AND MADE SUBSTANTIVE ADDITION IN THE CASE OF SHANTISURI SECURITIES PVT. LTD. ON THE BASIS OF INFORMATION RECEIVED FROM ITO WARD- 8(3), AHMEDABAD, THE CASE OF THE ASSESSEE WAS REOPENED ON 28.03.2012 TO VERIFY THE GENUINENESS OF LOAN TRANSACTIONS OF RS.L 7,99,518/- THAT HE HAS RE CEIVED FROM M/S. SHANTISURI SECURITIES PVT. LTD. HERE IT IS IMPORTANT TO MENTIO N THAT SHRI BHAVESH BHANDARI SON OF THAN DIRECTOR (GIRISHBHAI BHANDARI) HIMSELF HAS CONFESSED THE FACT THAT ALL THE SHARE CAPITAL INTRODUCED ARE NOTHING BUT MERE PAPER ENTRIES. IN STATEMENT IT WAS STATED THAT CASH WAS T AKEN FROM THE PERSONS TO WHOM LOAN WAS GIVEN AND THE SAME WAS PAID TO WHOM W HO INVESTED IN COMPANY AS LOAN AND ADVANCES. THIS STATEMENT WAS GI VEN WITHOUT COERCION AND THREAT. IN THE STATEMENT SHRI BHAVESH BHANDARI HAS EXPLAINED IN DETAILS THE ENTIRE STYLE OF TAKING CASH FROM LOAN SEEKERS A ND GIVING THE SAME TO SHARE INVESTORS. IF AT ALL ANYBODY HAS GIVEN STATEMENT ON THREAT, THE STATEMENT WOULD HAVE ONLY IN SAYING YES OR NO. HERE SHRI BHAV ESH BHANDARI HAS GIVEN DETAILED STYLE HOW EXACTLY THE LOAN AND ADVANCES WA S TAKEN IN RECORD AND HOW CASH WAS PAID TO INVESTORS AFTER COLLECTING CAS H FROM THE PARTIES TO WHOM THE LOAN AND ADVANCES WERE GIVEN. 6.2 SHRI BHAVESH BHANDARI IN HIS STATEMENT RECORDED ON 08.12.2009 HAS STATED THAT SOMETIME IN YEAR 2005 SOME OF HIS OLD C LIENTS WHO USED HIS SERVICES FOR CHEQUE DISCOUNTING APPROACHED HIM TO P ROVIDE ACCOMMODATING ENTRIES TO THEM IN THE FORM OF LOANS AND ADVANCES F OR A FIXED PERCENTAGE OF COMMISSION. SINCE HE DID NOT HAVE CASH TO PROVIDE T HE SAME, HE PURCHASED A LOSS MAKING COMPANY AND THEREAFTER ACCEPTED CASH FR OM THESE PARTIES AND HANDED IT OVER TO VARIOUS PARTIES WHO HAVE DEPOSITE D THE CASH IN THEIR OWN COMPANIES AND IN TURN INVESTED IN HIS COMPANY AS LO ANS AND ADVANCES. THIS MONEY WAS FORWARDED BY SHANTISURI SECURITIES PVT. L TD. AS LOANS AND ADVANCES TO VARIOUS PARTIES WHO HAVE GIVEN HIM CASH IN FIRST PLACE. SHRI BHAVESH BHANDARI IDENTIFIED THE ASSESSEE TO WHOM EN TRY OF RS.L7,99,518/- IN THE FORM OF LOANS AND ADVANCES WERE GIVEN. THIS CLE ARLY SHOWS THAT THE ASSESSEE HAS RECEIVED AN AMOUNT OF RS.L7,99,518/- F ROM SHANTISURI SECURITIES PVT. LTD. AS LOANS AND ADVANCES IN THE A.Y. 2005-06 . 6.3 SHRI BHAVESH BHANDARI IDENTIFIED AN AMOUNT OF R S. 17,99,5 187- IN THE NAME OF ASSESSEE AS BOGUS ACCOMMODATING ENTRY WITHO UT ASSESSMENT YEAR- WISE BIFURCATION WHICH UNDERLINES THE FACT THAT THI S WHOLE AMOUNT OF RS. 17,99,5 187- PERTAIN FOR THE YEAR UNDER CONSIDERATI ON I.E. A.Y. 2005-06. THEREFORE, THIS FACT HAS ALREADY BEEN ESTABLISHED A T THE TIME OF ORDER PASSED U/S.153C R.W.S. 143(3) DATED 24/12/2009, ORDER U/S. 263 DATED 26/03/2012 AND 13/12/2012. DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS TAKEN/ACCEPTED LOAN OF RS.25,00,000/- AND ACCOUNT H AS BEEN SQUARED UP DURING THE YEAR. IN THE CASE OF SHANTISURI SECURITI ES PVT. LTD. SHRI BHAVESH 5 BHANDARI HAS IDENTIFIED AN AMOUNT OF RS.L7,99,518/- UNDER THE HEAD LOAN AND ADVANCES IN THE NAME OF CELLO CERAMICS LTD AND AGREED THAT INVESTMENT/LOAN AND ADVANCES MADE BY COMPANY DURING THE YEAR CONSIDERATION WAS NOTHING BUT CASH RECEIVED BY HIM FROM THE PARTY WHO HAVE TAKEN LOAN AND ADVANCES FROM HIM OR SHARE INVESTMEN T FROM HIM. THEREFORE, IT IS VERY CLEAR THAT ASSESSEE HAS RECEIVED PAYMENT THROUGH CHEQUE IN FORM OF SHARE CAPITAL BUT THE SOURCE OF RS.L7,99,518/- AS D ISCUSSED ABOVE HAS BEEN UNEXPLAINED AND HENCE REQUIRED TO BE ADDED IN YOUR TOTAL INCOME. 6.4 THE ASSESSMENT ORDER U/S. 153C R.W.S. 143(3) OF THE I.T. ACT 1961 PASSED IN THE CASE OF SHANTISURI SECURITIES PVT. LTD. FOR A.Y. 2005-06 ON 24.12.2009 CLEARLY DEPICT THE NAME OF ASSESSEE IN THE LIST OF PERSONS, ON PAGE NO. 6 OF THE ASSESSMENT ORDER, THAT THESE PERSONS WITH WHOM THE COMPANY HAS MADE PURPORTED INVESTMENTS/LOANS AND ADVANCES DURING THE YEAR UNDER CONSIDERATION ARE NOTHING BUT CASH RECEIVED BY IT F ROM THE PARTIES WHO HAVE TAKEN 'LOANS AND ADVANCES' FROM HIM. THIS CLEARLY A CCENTUATE THE FACT THAT THE ASSESSEE HAS OBTAINED BOGUS ENTRIES AS 'LOANS A ND ADVANCES' IN LIEU OF CASH ADVANCED TO SHANTISURI SECURITIES PVT. LTD. 6.5 IN VIEW OF THE ABOVE IT IS A CRYSTAL CLEAR THAT THE 'LOANS AND ADVANCES' WHICH IS FROM HIS UNACCOUNTED/UNDISCLOSED SOURCES. THEREFORE AN AMOUNT OF RS.L7,99,518/- IS ADDED TO THE TOTAL INCOME OF THE ASSESSEE ON PROTECTIVE BASIS. AS ADDITION ON SUBSTANTIAL BASIS HAS ALREADY MADE IN THE CASE OF M/S. SHANTISURI SECURITIES PVT. LTD VIDE ORDER U/S. 143( 3) R.W.S. 263 OF THE I.T. ACT 1961 PASSED ON 13.12.2012 PASSED BY I.T.O. WARD-8(3 ), AHMEDABAD. IT IS HELD THAT THIS INCOME ARE NOT DIRECTLY DERIVED FROM INDUSTRIAL UNDERTAKING AND CANNOT BE A PART OF BUSINESS PROFIT., THEREFORE IT CAN BE TAXED UNDER THE HEAD INCOME FROM OTHER SOURCES AND NO DEDUCTION U/S .80IB OF THE I.T. ACT IS ALLOWED. PENALTY PROCEEDINGS U/S. 271(L)(C) OF THE I.T. ACT 1961 ARE SEPARATELY INITIATED FOR FURNISHING INACCURATE PART ICULARS OF INCOME/CONCEALMENT OF INCOME. 7. AFTER DISCUSSION AND DATA MADE AVAILABLE THE TOT AL INCOME OF THE ASSESSEE IS COMPUTED AS BELOW: TOTAL INCOME AS PER ORDER U/S. 143(3) RS. 5,82,8 94/- ADD : ADDITION AS DISCUSSED ABOVE. RS. 17,9 9,518/ - TOTAL INCOME. RS.23,82,4121- I.E ROUNDED OFF U/S. 288A RS.23,82,410/- SINCE THE U/S.80IB OF THE I.T. ACT ON THE ASSESSED INCOME OF RS.5,82,894/- VIDE ORDER DATED 20/12/2007 WAS NOT ALLOWED TREATING IT AS UNACCOUNTED PURCHASES OF CORRUGATED BOXES. THEREFORE, TAX ON TOTAL INCOME OF RS.23,82,410/- IS WORKED OUT. INCOME U/S.115JB OF THE I.T. ACT OF RS.54,45,6 81/-. 6 6. APPEAL TO THE CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 7. BEFORE ME, THE LD.COUNSEL FOR THE ASSESSEE RAISE D TWO FOLD SUBMISSIONS. IN THE FIRST FOLD OF SUBMISSION, HE CONTENDED THAT THE ADDITION HAS BEEN MADE ON PROTECTIVE BASIS, BUT CORRESPONDING SUBSTANTIVE ADDITION HAS NOT BEEN MADE. HE PLACED ON RECORD COPY OF CIT(A)S ORDER P ASSED IN THE CASE OF SHANTISURI SECURITIES P. LTD. IN THE ASSTT.YEAR 200 5-06. THIS ORDER HAS BEEN PASSED ON 3.6.2014. HE POINTED OUT THAT ALONG WITH THIS ORDER, THE LD.CIT(A) HAS ATTACHED AN ANNEXURE-A EXHIBITING THE DETAILS O F ALLEGED PARTIES WHO HAVE TAKEN ADVANCES/SHARE APPLICATION FOR WHICH ADDITION S HAVE BEEN MADE ON SUBSTANTIVE BASIS IN THE CASE OF SHANTISURI SECURIT IES P. LTD. THE NAME OF THE ASSESSEE IS NOT AVAILABLE. IN HIS SECOND FOLD OF S UBMISSIONS, HE CONTENDED THAT ADDITION IS BASED ON THE STATEMENT OF SHRI BHAVESH BHANDARI, BUT NO OPPORTUNITY TO CROSS-EXAMINE SHRI BHAVESH BHANDARI WAS EVER GRANTED TO THE ASSESSEE IN SPITE OF SPECIFIC REQUESTS. ON THE OTH ER HAND, THE LD.DR RELIED UPON THE ORDERS OF THE REVENUE AUTHORITIES BELOW. 8. I HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GON E THROUGH THE RECORD CAREFULLY. BEFORE ADVERTING TO THE SUBMISSIONS RAI SED BY THE LD.COUNSEL FOR THE ASSESSEE, I WOULD LIKE TO REFER STATEMENT OF SHRI B HAVESH BHANDARI DATED 8.12.2009 WHICH HAS BEEN REPRODUCED IN THE CASE OF SHANTISURI SECURITIES P. LTD. IT READS AS UNDER: Q. NO. 8 .: ALONG WITH THIS, I AM PRESENTING THE NA MES OF THOSE WHO ARE GIVEN LOAN AND ADVANCES. Q. NO. 9 .: FROM THE FOLLOWING COMPANIES SHARE APPL ICATION MONEY WITH PREMIUM IS RECEIVED IN LIEU OF CASH GIVEN. (1) DHRUV PORT INFRA PVT. LTD. (2) GUJARAT ZAVERI SPINNERS LTD. (3) KAMLESHBHAI R BHAVSAR. (4) LUNIYA FINELEASE LTD , 7 (5) MAHAVIRPRASAD D. AGARWAL. (6) MUKESHBHAI AGARWAL. (7) PADMAVATI TRADERS. (8) RAMDEV MARKETING PVT. LTD. (9) RANAKPUR SECURITIES LTD. (10) R.D. ENTERPRISE. (11) RUSHABH FINESTOCK & CONSULTANCY LTD. . (12) SAMPATI ENTERPRISE. (13) SONAL COSMETICS(EXPORTS) LTD. (14) SONAL INTERNATIONAL LTD. (15) SWAGAT AGENCY. (16) WAX HOUSING CORPORATION. (17) VIJAY TRADING COMPANY. (18) DHANVIDYA MULTI SALES PVT LTD. (19) PRABHAVI INVESTMENT PVT. LTD. (20) BHAVANA INVESTMENT PVT. LTD. ' (21) DHANVIDYA INT. PRIVATE LTD. (22) INSI CYBER TECH PVT. LTD. (23) NIKSAS SOFTWARE LTD. (24) SHANKESHWAR METAL PVT. LTD. (25) FUJI MARKETING PVT. LTD. (26) SHALIBHADRA STEEL PVT. LTD. (27) SUNITA GRANITES PVT. LTD. (28) SIDDHI VINAYAK TRADING PVT. LTD. (29) SHANTI TRADELINK PVT. LTD. (30) VIBRATION INFRA PVT. LTD. (31) GENIOUS COMPUTECH LTD. (32) MIFTIN CAP! LTD. (33) GIRISH METAL PVT. LTD. (34) RUDRA SECURITIES AND CAPITAL LTD. . (35) DYNACHEM PHARMA (ESPORT) LTD. (36) SONAL STEEL CHEM LTD. (37) DARSHINI MARKETING PVT. LTD. (38) SHIV SHAKTI AGRO FOODS. (39) SUPREME TELECOM & NETWORK (E) LTD. (40) ARHIHANT CORPORATION. (41) DHARMESH CORPORATION. . HE ALSO REAFFIRMED THAT CASH RECEIVED FROM ASIAN GR ANETO AND OTHER PARTIES WERE GIVEN TO THESE PARTIES, WHO IN TURN, G IVEN CHEQUE AMOUNT IN THE FORM OF SHARE APPLICATION WITH PREMIUM. Q. NO. 10.: SINCE THE PEOPLE OF ASIAN GRANETO WERE NOT KNOWING THESE COMPANIES AND WERE NOT HAVING ANY TRUST ABOUT SECUR ITY OF FUND WE ACTED AS MIDDLE MEN AND FACILITATED THE TRANSACTION . Q. NO. 11 .:THE DIFFERENT ENTRY OF SHARE APPLICATIO N WITH PREMIUM ON ONE SIDE WHILE LOAN AND ADVANCES ON OTHER SIDE IS DONE KEEPING IN VIEW THAT BY RECEIPT OF INTEREST OUR CAPITAL GET INCREASED. Q. NO. 12 .:I AM READY FOR CROSS EXAMINATION IF CAL LED AS AND WHEN THEY CALL ME IF REQUIRED TO ACCEPT THAT I RECEIVED CASH FROM ASIAN GRANETO AND OTHERS GROUP WHICH IS BEING EXTENDED TO 41 PARTIES FROM WHOM SHARE APPLICATION MONEY WITH PREMIUM IS RECEIVED IN CHEQU E. 8 SHRI BHAVESH BHANDARI ALSO SUBMITTED LIST OF PARTIE S TO WHOM LOAN AND ADVANCES WERE GIVEN AS UNDER: - ADHESHWAR SALE CORPORATION RS.10,00,000. CELLO CERAMICS LTD. RS.17,99,578. MAHARAJA AMARSINGH BHLMSINGH RS. 35,82,131. MIT MARKETING RS- 15,00,000. PADMAVATI PETROLIUM RS. 28,40,610. PRATIK ENTERPRISE RS. 2,04,420. TOTAL RS. 1,09,26,679. 9. FROM THE ABOVE REPLY, IT IS DISCERNIBLE THAT SHR I BHAVESH BHANDARI WAS ENGAGED IN PROVIDING ACCOMMODATION ENTRIES. THE AS SESSEE HAS AVAILED LOAN OF RS.17,99,518/- FROM HIS CONCERN. TO THAT EXTENT , THERE IS NO AMBIGUITY. THIS INFORMATION CAN BE INFORMATION FOR STARTING IN QUIRY IN THE CASE OF THE ASSESSEE, BUT WITHOUT PROVIDING AN OPPORTUNITY TO C ROSS-EXAMINE SHRI BHAVESH BHANDARI, THIS MATERIAL CANNOT BE USED AGAINST THE ASSESSEE. SIMILARLY, IN THE CASE OF THE ASSESSEE, ADDITION HAS BEEN MADE ON PRO TECTIVE BASIS, AS DISCERNIBLE FROM THE FINDING OF THE AO EXTRACT SUPR A. BUT IN SPITE OF QUERY, THE LD.DR WAS UNABLE TO POINT OUT SUBSTANTIVE ADDIT ION MADE IN THE HANDS SHANTISURI SECURITIES P. LTD. I, ANNEX ANNEXURE-A ATTACHED BY THE CIT(A) IN THE CASE OF SHANTISURI SECURITIES P. LTD. EXHIBITI NG DETAILS OF VARIOUS PARTIES AND THE AMOUNT CONSIDERED IN THOSE CASES. I ALSO M ADE THAT ANNEXURE AS A PART OF THIS ORDER, SINCE NEITHER THIS ANNEXURE WAS FILE D BEFORE THE AO NOR BEFORE CIT(A). THE AO HAS RECORDED A FINDING THAT SUBSTA NTIVE ADDITION IS BEING MADE IN THE CASE OF SHANTISURI SECURITIES. IN THAT CASE THERE WAS AN ASSESSMENT ORDER WHICH WAS REVISED BY THE LD.CIT BY EXERCISING POWERS U/S.263 OF THE INCOME TAX ACT. FROM THE PAPERS FIL ED BEFORE ME, AND IN THE ABSENCES OF THE AO, IT IS DIFFICULT TO CROSS-VERIFY THE PLEA OF THE ASSESSEE THAT NO SUBSTANTIVE ADDITION WAS MADE. THEREFORE, IN TH E FACTS AND CIRCUMSTANCES OF THE CASE, I DEEM IT APPROPRIATE TO REMIT THIS CA SE TO THE AO FOR RE- ADJUDICATION WITH FOLLOWING DIRECTIONS: 9 I) THE LD.AO HAS TO RECORD A SPECIFIC FINDING BY MA KING A REFERENCE OF THE PAGE NO., AND SERIAL NO. AT WHICH THIS AMOUN T OF RS.17,99,518/- WAS ADDED ON SUBSTANTIVE BASIS. IN CASE, THERE IS NO ADDITION ON SUBSTANTIVE BASIS, THEN, THIS ADDITION WOULD BE TER MED AS DELETED. II) IF SUBSTANTIVE ADDITION HAS BEEN MADE IN THE HA NDS OF SHANTISURI SECURITIES P. LTD. OR ANY OTHER CONCERN, THEN BEFOR E DECIDING FATE OF THE ADDITION IN THE HANDS OF THE ASSESSEE, THE LD.AO SH ALL PROVIDE AN OPPORTUNITY TO CROSS-EXAMINE SHRI BHAVESH BHANDARI. 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 9 TH SEPTEMBER, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 09/09/2016