M/s. Homeway Marketing (P) Ltd., New Delhi V. ITO, New Delhi

ITA 1694/DEL/2014

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1343 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 24-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S N MEENA
• Assessee Lawyers: DEEPAK OSTWAL
• Keywords: Gift; Accommodation entries; Assessment record
• Section: 131; 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1694/DEL/2014 :ASSTT. YEAR : 2004-05 M/S HOMEWAY MARKETING PVT. LTD., 39/2068, NAIWALA, 315, DAKHA CHEMBER, KAROL BAGH, NEW DELHI-110005 VS INCOME TAX OFFICER, WARD-12(4), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AABCH0130Q ITA NO. 878/DEL/2014 :ASSTT. YEAR : 2004-05 M/S HOPEWITH ADMARK & CONSULTANCY SERVICES PVT. LTD., 39/2068, NAIWALA, 315, DAKHA CHEMBER, KAROL BAGH, NEW DELHI-110005 VS INCOME TAX OFFICER, WARD-12(4), NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AAACH6960P ASSESSEE BY : SH. DEEPAK OSTWAL, CA REVENUE BY : SH. S. N. MEENA, SR. DR 8 DATE OF HEARING: 04.03.2020 DATE OF PRONOUNCEMENT: 21.05.2020 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEALS HAVE BEEN FILED BY THE ASSESSE E AGAINST THE ORDER OF THE LD. CIT(A)-XI, NEW DELHI D ATED 29.11.2013 IN ITA NO. 878/DEL/2014 AND THE ORDER OF THE LD. CIT(A)-XVIII, NEW DELHI DATED 24.12.2013 IN ITA NO. 1694/DEL/2014. ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 2 2. SINCE, THE ISSUES INVOLVED IN BOTH THE APPEALS A RE SIMILAR IN NATURE EXCEPT THE QUANTUM INVOLVED THEY ARE BEING ADJUDICA TED TOGETHER. 3. AT THE OUTSET, THE LD. AR ARGUED THAT SINCE THE ADDITION MADE BY THE AO IS NOT IN ACCORDANCE WITH THE REASONS OF REOPENI NG THE ADDITIONS MADE BY THE ASSESSING OFFICER ARE LIABLE TO BE QUASHED. 4. THE LD. DR HAS VEHEMENTLY ARGUED THAT THE ADDITIO NS MADE FOLLOWS THE REASONS RECORDED FOR REOPENING OF THE CASE AND OWING TO THE EXPLANATION III TO SECTION 148 OF THE INCOME TAX AC T, 1961 INTRODUCE W.E.F. 01.04.1989 BY THE FINANCE ACT, 2009 EMPOWERS THE ASSESSING OFFICER TO MAKE ADDITION OF ANY OTHER ESCAPED INCOM E FOR THE ASSESSMENT YEAR WHICH MAY HAVE COME TO HIS NOTICE DURING THE A SSESSMENT PROCEEDINGS. HE STRONGLY RELIED ON THE ORDERS OF TH E AUTHORITIES BELOW. 5. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 6. THE REASONS RECORDED BY THE ASSESSING OFFICER AR E AS UNDER: THE DIRECTORATE OF INCOME TAX (INVESTIGATION), NEW DELHI HAS CARRIED OUT INVESTIGATION IN THE CASES OF CERTAIN G ROUP OF PERSONS WHO WERE PROVIDING ACCOMMODATION ENTRIES. THESE ENQ UIRIES WERE INITIATED TO PROBE INTO SOME BANK ACCOUNTS WHICH WE RE USED TO ISSUE CHEQUES TO ENTRY SEEKERS OR BENEFICIARIES AGA INST CASH PAID BY THEM TO THE ENTRY OPERATORS. SUCH A CAMOUFLAGED TRANSACTION CAME TO LIGHT DURING THE COURSE OF SURVEY IN THE CA SE OF M/S. GURCHARAN JEWELLERS WHOSE PROPRIETOR SHRI ASHOK KUM AR CHAUHAN HAD ADMITTED TO HAVE TAKEN CHEQUES UNDER THE GARB O F GIFTS AFTER GIVING CASH TO THE ENTRY OPERATOR. PROBE WAS INITIA TED INTO THE ACCOUNTS WHICH WERE USED TO PROVIDE THESE ENTRIES. THESE INVESTIGATIONS LED TO REVEALING OF MANY MORE BANK A CCOUNTS WHICH WERE BEING USED BY THE ENTRY OPERATORS FOR THE PURP OSE OF GIVING ACCOMMODATION ENTRIES. 2 EXTENSIVE ENQUIRIES WERE MADE, INTO NUMEROUS SUCH BANK ACCOUNTS, THE ACCOUNT HOLDERS, THE PERSONS OPERATIN G THESE ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 3 ACCOUNTS AND THE PERSONS FOR WHOM SUCH ACCOUNT HOLD ERS WERE WORKING. THESE ENQUIRIES REVEALED INTER ALIA THE FO LLOWING: - 2.1 ENTRIES WERE BEING BROADLY TAKEN FOR TWO PURPOS ES: 1. TO PLOUGH BACK UNACCOUNTED BLACK MONEY FOR THE P URPOSE OF BUSINESS OR FOR PERSONAL NEEDS SUCH AS PURCHASE OF ASSETS ETC., IN THE FORM OF GIFTS, SHARE APPLICATION MONEY, LOANS E TC. 2. TO INFLATE EXPENSES IN THE TRADING AND PROFIT AN D LOSS ACCOUNT SO AS TO REDUCE THE REAL PROFITS AND THEREBY PAY LESS TAXES. 2.2 THE ASSESSEES WHO HAD UNACCOUNTED MONEY (CALLED AS ENTRY1 TAKERS OR BENEFICIARIES) AND WANTED TO INTRODUCE TH E SAME IN THE BOOKS OF ACCOUNTS WITHOUT PAYING TAX, APPROACHED AN OTHER PERSON (CALLED AS ENTRY OPERATOR) AND HANDED OVER THE CASH (PLUS COMMISSION) AND HAD TAKEN CHEQUES/DDS/POS. THE CASH WAS BEING DEPOSITED BY THE ENTRY OPERATOR IN A BANK ACCOUNT E ITHER IN HIS OWN NAME OR IN THE NAME OF RELATIVES/FRIENDS OR OTHER P ERSONS HIRED BY HIM, FOR THE PURPOSE OF OPENING BANK ACCOUNT. IN MO ST OF THESE BANK ACCOUNTS, THE INTRODUCER WAS THE MAIN ENTRY OP ERATOR AND THE CASH DEPOSIT SLIPS AND OTHER INSTRUMENTS WERE FILLE D BY HIM. THE OTHER PERSONS (IN WHOSE NAME THE A/C IS OPENED) ONL Y USED TO SIGN THE BLANK CHEQUE BOOK AND HAND OVER THE SAME TO THE MAIN ENTRY OPERATOR. THE ENTRY OPERATOR THEN USED TO ISSUE CHE QUES/DDS/POS IN THE NAME OF THE BENEFICIARY FROM THE SAME ACCOUN T (IN WHICH THE CASH IS DEPOSITED) OR ANOTHER ACCOUNT IN WHICH FUND S WERE TRANSFERRED THROUGH CLEARING IN TWO OR MORE STAGES. THE BENEFICIARY IN TURN DEPOSITED THESE INSTRUMENTS IN HIS BANK ACC OUNTS AND THE MONEY CAME TO HIS REGULAR BOOKS OF ACCOUNT IN THE F ORM OF GIFT, SHARE APPLICATION MONEY, LOAN ETC THROUGH BANKING C HANNELS. 2.3 THE OPERATORS GAVE THE ACCOUNT HOLDERS AMOUNTS RANGING FROM RS 1000 TO 2000 PER MONTH. THESE ACCOUNT HOLDERS WE RE MASONS, PLUMBERS, ELECTRICIANS, PEONS, DRIVERS ETC, WHOSE E ARNINGS ARE NOT SUFFICIENT FOR A LIVING. THEY EARNED NORMALLY RS 3 TO 5 THOUSAND PER MONTH IN THEIR NORMAL WORK AND BY WORKING FOR THE E NTRY OPERATORS EARNED EXTRA INCOME OF RS 2 TO 4 THOUSAND PER MONTH . THEIR SIGNATURES WERE TAKEN ON BLANK GIFT DEEDS, CHEQUE B OOKS, SHARE APPLICATION MONEY ETC. IN FACT THESE PERSONS SIGNED ALL TYPES OF PAPERS THEY WERE ASKED TO SIGN. THEY WERE MADE DIRE CTORS OF COMPANIES, PARTNERS OF FIRMS AND PROPRIETOR OF DIFF ERENT CONCERNS SOLELY FOR OPERATION OF THESE ACCOUNTS. ACTUALLY, M ANY OF THEM WERE NOT EVEN AWARE OF THE TAX IMPLICATIONS ETC. TH EIR ONLY CONCERN ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 4 WAS WITH THE FEW THOUSAND RUPEES GIVEN TO THEM BY T HE ENTRY OPERATORS. 3. SUMMING UP, THE REPORT AS A RESULT OF THESE EXT ENSIVE ENQUIRIES CARRIED OUT BY THE D.I.T. (INV.), NEW DELHI HAS ASS AILED GENUINENESS OF TRANSACTIONS, WHETHER SHOWN BY BENEF ICIARIES AS INFLOW OF SHARE CAPITAL/ LOAN OR RECEIPT OF GIFTS O R CONSIDERATION FOR SALE- PURCHASE. IT HAS ALSO DEALT A BODY BLOW TO TH E CREDITWORTHINESS OF THE PERSONS/PERSONS CONTROLLING THE CONCERNS WHO HAVE GIVEN THESE CREDIT ENTRIES/SHARE CAPITAL/G IFTS/SALE CONSIDERATION AS THEY HAVE BEEN SEEN TO BE MEN OF N O MEANS. 4. IN THE INSTANT CASE OF THE ASSESSEE, M/S HOPEWI N ADMARK & CONSULTANCY SERVICES PVT. LTD. THE FOLLOWING CREDIT S HAVE BEEN SHOWN IN THE BANK ACCOUNT: BANK OF THE ASSESSEE BRANCH OF THE BANK INSTRUMENT NO. AMOUNT DATE CREDIT ENTRY COMING FROM THE ACCOUNT OF CITI BANK SANSAD MARG 609052 500000 15.07.2003 PARAM ENTERPRISES CITI BANK SANSAD MARG 609054 400000 19.07.2003 PARAM ENTERPRISES CITI BANK JEEVAN BHARTI BUILDING 884002 500000 09.08.2003 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 884015 200000 04.09.2003 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 874986 250000 28.02.2004 - P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 874994 250000 09.03.2004 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 874996 150000 09.03.2004 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 857650 400000 23.03.2004 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 874961 200000 16.01.2004 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 874962 200000 16.01.2004 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 874983 160000 26.02.2004 P.K. INVESTMENTS CITI BANK JEEVAN BHARTI BUILDING 879003 340000 27.01.2004 P.K. INVESTMENTS ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 5 4.1 ENQUIRIES REVEALED THAT ONE SHRI VISHAL AGGARWA L, S/O SHRI HARISH AGGARWAL, R/O WZD/137, ARYA SAMAJ ROAD, UTTA M NAGAR, NEW DELHI WAS CONTROLLING A NUMBER OF BANK ACCOUNTS IN VARIOUS NAMES & WAS USING VARIOUS PERSONS TO OPERATE THESE ACCOUNTS. IN THIS REGARD, STATEMENTS ON OATH U/S 131 OF THE I. T . ACT, 1961 OF SHRI VISHAL AGGARWAL WAS RECORDED ON 05.03.2005 BY THE ADDL. D.I.T. (INV.), UNIT-1, NEW DELHI FOLLOWING IS THE G IST OF THE STATEMENTS CONTAINING ADMISSIONS RELEVANT TO THIS C ASE: - (I) STATEMENTS WERE GIVEN ON OATH BY SHRI VISHAL AG GARWAL BEFORE ADDL. D.I.T. (INV.), UNIT-I, NEW DELHI IN WHICH HE HAS ADMITTED TO HAVE INDULGED IN GIVING ENTRIES. HE HAS ALSO ADMITT ED THAT HE IS CONTROLLING VARIOUS PERSONS WHO SIGN ON HIS BEHEST TO PROVIDE THE ACCOMMODATION ENTRY AND THE ASSESSEE COMPANY M/S HO PWIN ADMARK & CONSULTANCY SERVICES PVT. LTD. IS ONE SUCH CONCERN WHICH IS ENGAGED IN PROVIDING SUCH ACCOMMODATION EN TRIES TO VARIOUS BENEFICIARIES. STATEMENT OF SMT. MANJU AGGA RWAL WAS ALSO RECORDED ON OATH ADMITTING THE SAME FACTS. IN AN ANSWER TO QUESTION NO. 12 SHRI VISHAL AGGARWAL IS ADMITTED TH AT HE GOT A COMMISSION OF RS. 0.25 ON CASH TRANSACTION AND 0.50 ON TRANSFER TRANSACTION. 4.2 IN VIEW OF THE FINDINGS OF THE INVESTIGATION RE PORT AND CATEGORICAL ADMISSION BY THE ENTRY PROVIDER IT IS C LEAR THAT THE ENTRY PROVIDER HAS USED THE ASSESSEE COMPANY TO PRO VIDE THE ACCOMMODATION ENTRIES TO THE TUNE OF RS. 35,50,000/ -. ON PERUSAL OF THE RETURN FILED BY THE ASSESSEE IT HAS BEEN OBSERVED THAT THE ASSESSEE HAS RECEIVED FRESH SHARE APPLICAT ION MONEY OF RS. 10.5 LACS AND MADE A FRESH INVESTMENT OF RS. 10 LACS AND SHOWN SERVICE CHARGES RECEIVED OF RS.6.3 LACS AND S ALES OF RS.9.83 LACS AND CLAIMED EXPENDITURE OF RS.16.66 LA CS.. THE ASSESSEE HAS ALSO REDUCED ITS CURRENT LIABILITIES B Y RS.7.09 LACS. THE ASSESSEE HAS THUS HELPS VARIOUS BENEFICIARIES I N PROVIDING ACCOMMODATION ENTRIES IN RELATION TO CAPITAL & EXPE NSES. SINCE ALL THESE TRANSACTIONS ARE SHAM TRANSACTION AND HAS BEE N DONE FOR PROVIDING ACCOMMODATION ENTRIES ON WHICH THE ASSESS EE HAS EARNED THE COMMISSION BUT HAS NOT REFLECTED THE SAM E IT ITS BOOKS OF ACCOUNT. THE LENDERS IN THESE CASES HAVE B EEN PROVED TO BE MEN/PARTIES OF NO CREDITWORTHINESS. I THEREFORE HAVE REASONS TO BELIEVE THAT THIS AMOUNT OF RS. 95.88 LACS REPRE SENTS INCOME OF THE ASSESSEE CHARGEABLE TO TAX AND THE COMMISSIO N ON THIS AMOUNT WHICH HAS ESCAPED ASSESSMENT FOR A.Y. 04-05. ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 6 THE NECESSARY APPROVAL U/S 151(2) MAY KINDLY BE ACC ORDED FOR ISSUE U/S 148 OF THE INCOME TAX ACT, 1961 FOR A.Y. 04-05. 7. FROM THE DETAILED EXAMINATION OF THE REASONS, WE FIND THAT IT CONSISTS OF TWO PARTS. PART A: 1. THE ASSESSMENT HAS BEEN REOPENED BASED ON THE IN FORMATION RECEIVED FROM THE INVESTIGATION WING, NEW DELHI. 2. THE INFORMATION PERTAINS TO ENTRY OPERATORS WHO ARE INVOLVED IN GIVING ACCOMMODATION ENTRIES. 3. THE AO HELD THAT THE ASSESSEE HAS RECEIVED CREDI TS INTO THE BANK ACCOUNT OF THE ASSESSEE. 4. THE AO HELD THAT BASED ON THE STATEMENT RECORDED ON OATH U/S 131 OF THE ACT OF ONE PERSON NAMELY, SH. VISHAL AGGARWAL T HAT ACCOMMODATION ENTRIES WERE PROVIDED BY THE ASSESSEE AND THE ASSES SEE IS ENGAGED IN PROVIDING ACCOMMODATION ENTRIES TO VARIOUS BENEFICI ARIES. IN CONCLUSION, THE AO HELD THAT THE ASSESSEE HAS BEEN USED TO PROV IDE ACCOMMODATION ENTRIES TO THE TUNE OF RS.35.50 LAKHS. THUS, HELPIN G VARIOUS BENEFICIARIES IN RELATION TO CAPITAL AND EXPENSES. 5. THE AO HELD THAT THE ASSESSEE HAS EARNED THE COM MISSION BUT NOT REFLECTED THE SAME IN THE BOOKS OF ACCOUNT. PART B: WHILE HOLDING THAT THE ASSESSEE HAS NOT ACCOUNTED T HE COMMISSION RECEIVED FOR PROVIDING ENTRIES AND AT THE SAME TIME , THE AO HELD THAT HE HAS REASONS TO BELIEVE THAT AN AMOUNT OF RS.95.88 L AKHS REPRESENTS THE ESCAPED INCOME OF THE ASSESSEE. THE AMOUNT OF RS.95 .88 LAKHS HAS BEEN DERIVED BY THE ASSESSING OFFICER WHICH IS AS UNDER: A. AN AMOUNT OF ENTRIES PROVIDED RS.35.50 LAKHS B. FRESH YEAR APPLICATION RS.10.50 LAKHS ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 7 C. FRESH INVESTMENT RS.10 LAKHS D. SERVICE CHARGES RS.6.30 LAKHS E. SALES RS.9.83 LAKHS F. EXPENDITURE RS.16.66 LAKHS G. DECREASE IN LIABILITIES RS.7.09 LAKHS 8. ON CULMINATION OF PROCEEDINGS, THE ASSESSING OFF ICER HAS MADE ADDITIONS ON ACCOUNT OF AMOUNT ROUTED THROUGH HIM F OR GIVING ACCOMMODATION ENTRIES OF RS.35,50,000/- AND RS.10,5 0,000/- ON ACCOUNT OF THE AMOUNTS RECEIVED IN CASH AS WELL AS CHEQUE O N ACCOUNT OF SHARE CAPITAL. THE ADDITIONS MADE BY THE ASSESSING OFFICE R ARE EXAMINED IN THE LIGHT OF THE REASONS FOR REOPENING RECORDED BY THE ASSESSING OFFICER. ON PERUSAL OF PARA 4.2 OF THE REASONS, WE FIND THAT TH E AO INITIALLY HELD THAT THE ASSESSEE COMPANY HAS BEEN USED TO PROVIDE ACCOM MODATION ENTRIES TO THE TUNE OF RS.35,50,000/- AND THE COMMISSION RECEI VED HAS NOT BEEN REFLECTED IN THE BOOKS OF ACCOUNT. HAVING SAID SO, THE ASSESSING OFFICER WENT AHEAD WITH TAXING THE ENTIRE AMOUNT IN THE HAN DS OF THE ASSESSEE WHICH WAS UTILIZED FOR PROVIDING THE ENTRIES. SIMIL ARLY, THE ADDITION MADE BY THE AO ON ACCOUNT OF THE SHARE CAPITAL OF RS.10, 50,000/- RECEIVED FROM VARIOUS INDIVIDUALS NAMELY, HARISH AGGARWAL, PARMAN AND BHARDWAJ, SUVAN AGRO ENTERPRISES PVT. LTD. AND TOPCHEM INDIA PVT. L TD. 9. THE AO HAS CALCULATED AN AMOUNT OF RS.95.88 LAKH S AS REPRESENTING THE INCOME OF THE ASSESSEE CHARGEABLE TO TAX AND TH E COMMISSION ON THIS AMOUNT HAS ESCAPED ASSESSMENT (LAST LINE OF PARA 4. 2 OF REASONS). THIS CLEARLY PROVES THAT THE MIND OF THE ASSESSING OFFIC ER REVOLVED ONLY ON THE COMMISSION INCOME. EVEN IF, IT IS ASSUMED THAT THE AO HAS CONSIDERED AN AMOUNT OF RS.95.88 LAKHS AS INCOME ESCAPED, WE FIND THAT THIS HAS BEEN DERIVED BY THE AO BY ADDING UP AMOUNT OF THE ENTRY PROVIDED, AMOUNT OF THE SHARE APPLICATION RECEIVED, AMOUNT OF THE FRESH INVESTMENT, SERVICE ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 8 CHARGES RECEIVED, SALES, EXPENDITURE AND REDUCTION OF LIABILITIES. WITH GREAT PAIN, WE HAVE TO HOLD AT THIS POINT THAT THE ASSESS ING OFFICER HAS TAKEN THE DEBITS, CREDITS INCOME EXPENDITURE, THE LIABILITIES EXPENSES ALTOGETHER ADDED UP AND CONSIDERED IT AS AN ESCAPEMENT OF INCO ME. THE INITIAL ASSUMPTION OF THE AO THAT THE ASSESSEE HAS NOT ACCO UNTED THE COMMISSION INCOME BEING A CONDUIT OF THE ENTRY OPERATOR HAS BE EN ENLARGED TO THE ASSUMPTION TO ESCAPEMENT OF INCOME ADDING UP OF THE FIGURES OF BALANCE SHEET AND P&L A/C. SUCH ACTION ON THE PART OF THE A SSESSING OFFICER SMACKS OF THE BASIC APPLICATION OF MIND WHILE RECORDING TH E REASONS. THEREFORE A CONCLUSION ARISES AS TO ABJECT NON-APPLICATION OF M IND. IT IS APPARENT THAT THE AO DID NOT APPLIES OWN MIND TO THE INFORMATION AND EXAMINE THE BASIC MATERIAL FOR INFORMATION. THE INFORMATION HAS NOT B EEN EXAMINED WITH REFERENCE TO THE FACTS ON RECORD WITH THE ASSESSING AUTHORITY OR WITH THE RETURN OF INCOME FILED BY THE ASSESSEE. IT IS DISCE RNIBLE THAT THE AO HAS NOT APPLIED HIS MIND TO THE MATERIAL RECEIVED AS WELL A S TO THE MATERIAL BEFORE HIM IN THE FORM OF ASSESSMENT RECORDS TO COME TO A CORRECT CONCLUSION THAT THE INCOME HAD ESCAPED ASSESSMENT. FROM THE RE ASONS RECORDED, WE FIND THAT THE ASSESSING OFFICER HAD NO CLARITY AS T O WHAT HE CONSIDERS AS INCOME ESCAPED ASSESSMENT WHETHER THE COMMISSION ON THE ENTRIES PROVIDED OR THE TOTAL AMOUNT OF ENTRIES. FURTHER, W HILE CALCULATING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER MADE ADDITION OF THE ENTRIES WHICH THE ASSESSING OFFICER HIMSELF HAS ACC EPTED THAT THESE ENTRIES HAVE BEEN PROVIDED TO OTHER COMPANIES AS ACCOMMODAT ION ENTRIES. IN THAT CASE, THERE IS AN INBUILT CONTRADICTION IN THE ACTI ON OF THE ASSESSING OFFICER WHILE CONCLUDING THE ASSESSMENT PROCEEDING. THE AO TREATS THAT THE ASSESSEE HAS BEEN UTILIZED TO PROVIDE ENTRIES TO OT HER COMPANIES WHEREIN HE TREATED THE ASSESSEE AS A CONDUIT AND ALSO HE TR EATED THE ASSESSEE AS THE OWNER OF THIS AMOUNT. THE AO MENTIONS THAT THE ASSESSEE IS HELPING VARIOUS BENEFICIARIES IN PROVIDING ACCOMMODATION EN TRIES IN RELATION TO CAPITAL AND EXPENSES. ON MERITS, THE AO HAS NOT MAD E ANY PRIMARY, ITA NOS. 878 & 1694/DEL/2014 HOPEWIN ADMARK & HOMEWAY MARKETING PVT. LTD. 9 INDEPENDENT ENQUIRY TO ARRIVE AT A CONCLUSION TO TA X THE AMOUNT U/S 68 OF THE ACT. 10. IN NUTSHELL, SINCE THE PART A OF THE REASONS RE CORDED ARE CLEAR AND LUCID ABOUT THE METHOD AND MODUS OF THE ENTRIES BEI NG FORWARDED BY THE ASSESSEE COMPANY AND NOT ACCOUNTING THE COMMISSION RECEIVED THEREOF, AND OWING TO THE FACT THAT THE ASSESSEE HAS REFUSED THE OPPORTUNITY OF REFUTING THE EVIDENCES GATHERED BY REVENUE THAT SH . VISHAL AGGARWAL AND OTHERS HAS USED THE COMPANY AS A CONDUIT TO GIVE AC COMMODATION ENTRIES, THE ADDITION MADE ON ACCOUNT OF COMMISSION INCOME E ARNED BY THE ASSESSEE ON THE AMOUNT OF THE ENTRIES PROVIDED IS H EREBY CONFIRMED. SINCE, THE ASSESSEE IS PROVEN TO BE A CONDUIT/PASS THROUGH ENTITY WITHOUT ANY BUSINESS OF ITS OWN, NO OTHER ADDITION IN THE H ANDS OF THE ASSESSEE COMPANY IS WARRANTED. 11. OWING TO THE NATURE OF THE ALLEGATIONS AND NON- APPLICATION OF MIND, WE HOLD THAT PART B OF THE REASONS RECORDED CANNOT BE HELD TO BE VALID CEASE TO SURVIVE. CONSEQUENTLY, THE ADDITIONS MADE BY THE ASSESSING OFFICER ARE LIABLE TO BE DELETED. 12. IN THE RESULT, THE APPEALS OF THE ASSESSEES ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21/05/2020. SD/- SD/- (SUSHMA CHOWLA) (DR. B. R. R. KUMAR) VICE PRESIDENT ACCO UNTANT MEMBER DATED: 21/05/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR