Appeal Details
Counselvise Citation
348020114 RSA 2013
Assessee PAN
Bench
Appeal Number
CRN Number
Duration Of Justice
1 year(s) 7 month(s) 27 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
28-01-2015
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Next Hearing Date
14-01-2015
Assessment Year
2008-2009
Appeal Filed On
31-05-2013
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .3477/DEL/2013 3477/DEL/2013 3477/DEL/2013 3477/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2008 2008 2008 2008- -- -09 0909 09 M/S OMNI FARMS PVT.LTD., M/S OMNI FARMS PVT.LTD., M/S OMNI FARMS PVT.LTD., M/S OMNI FARMS PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 1 11 19, BARAKHAMBA ROAD, 9, BARAKHAMBA ROAD, 9, BARAKHAMBA ROAD, 9, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACO5916C. PAN : AAACO5916C. PAN : AAACO5916C. PAN : AAACO5916C. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO.3478/DEL/2013 .3478/DEL/2013 .3478/DEL/2013 .3478/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008- -- -09 0909 09 M/S PASSION CHITS PVT.LTD., M/S PASSION CHITS PVT.LTD., M/S PASSION CHITS PVT.LTD., M/S PASSION CHITS PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AADCP2322A. PAN : AADCP2322A. PAN : AADCP2322A. PAN : AADCP2322A. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO.3480/DEL/2013 .3480/DEL/2013 .3480/DEL/2013 .3480/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008- -- -09 0909 09 M/S KATSON HOTEL & M/S KATSON HOTEL & M/S KATSON HOTEL & M/S KATSON HOTEL & DEVELOPERS PVT.LTD, DEVELOPERS PVT.LTD, DEVELOPERS PVT.LTD, DEVELOPERS PVT.LTD, FORMERLY KNOWN AS FALCON FORMERLY KNOWN AS FALCON FORMERLY KNOWN AS FALCON FORMERLY KNOWN AS FALCON FREIGHT PVT.LTD., FREIGHT PVT.LTD., FREIGHT PVT.LTD., FREIGHT PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACF9273F. PAN : AAACF9273F. PAN : AAACF9273F. PAN : AAACF9273F. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPE LLANT) (RESPONDENT) ITA-3477/D/2013 & 8 OTHERS 2 ITA NO ITA NO ITA NO ITA NO.3481/DEL/2013 .3481/DEL/2013 .3481/DEL/2013 .3481/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 M/S BERIWAL INVESTMENT & M/S BERIWAL INVESTMENT & M/S BERIWAL INVESTMENT & M/S BERIWAL INVESTMENT & CHIT FUND PVT.LTD., CHIT FUND PVT.LTD., CHIT FUND PVT.LTD., CHIT FUND PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACB4878J. PAN : AAACB4878J. PAN : AAACB4878J. PAN : AAACB4878J. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ INCOME TAX (HQ INCOME TAX (HQ INCOME TAX (HQ), ),), ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .3482/DEL/2013 .3482/DEL/2013 .3482/DEL/2013 .3482/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 M/S CHAMP FINVEST PVT.LTD., M/S CHAMP FINVEST PVT.LTD., M/S CHAMP FINVEST PVT.LTD., M/S CHAMP FINVEST PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACC5063G. PAN : AAACC5063G. PAN : AAACC5063G. PAN : AAACC5063G. VS. VS. VS. VS. DEPUTY COMM DEPUTY COMM DEPUTY COMM DEPUTY COMMISSIONER OF ISSIONER OF ISSIONER OF ISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .3483/DEL/2013 .3483/DEL/2013 .3483/DEL/2013 .3483/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 M/S CUBIC COMMERCIAL M/S CUBIC COMMERCIAL M/S CUBIC COMMERCIAL M/S CUBIC COMMERCIAL RESOURCES LTD., RESOURCES LTD., RESOURCES LTD., RESOURCES LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 00 110 00 110 00 110 001. 1.1. 1. PAN : AACCC2416R. PAN : AACCC2416R. PAN : AACCC2416R. PAN : AACCC2416R. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO.3484/DEL/2013 .3484/DEL/2013 .3484/DEL/2013 .3484/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008- -- -09 0909 09 M/S VIJAY CONDUCTORS INDIA M/S VIJAY CONDUCTORS INDIA M/S VIJAY CONDUCTORS INDIA M/S VIJAY CONDUCTORS INDIA PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, 19, 19, 19, BARAKHAMBA ROAD, BARAKHAMBA ROAD, BARAKHAMBA ROAD, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACV2913J. PAN : AAACV2913J. PAN : AAACV2913J. PAN : AAACV2913J. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA-3477/D/2013 & 8 OTHERS 3 ITA NO ITA NO ITA NO ITA NO.3485/DEL/2013 .3485/DEL/2013 .3485/DEL/2013 .3485/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 M/S VISHRUT MARKETING M/S VISHRUT MARKETING M/S VISHRUT MARKETING M/S VISHRUT MARKETING PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AABCV4875C. PAN : AABCV4875C. PAN : AABCV4875C. PAN : AABCV4875C. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .3621/DEL/2013 .3621/DEL/2013 .3621/DEL/2013 .3621/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 M/S NAMRATA MARKETING M/S NAMRATA MARKETING M/S NAMRATA MARKETING M/S NAMRATA MARKETING PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, 19, BARAKHAMBA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACN2450L. PAN : AAACN2450L. PAN : AAACN2450L. PAN : AAACN2450L. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), INCOME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, III,III, III, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANTS BY : SHRI R.S. SINGHVI AND SHRI SATYAJEET GOEL, CAS. RESPONDENT BY : SHRI GUNJAN PRASHAD, CIT-DR. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: : THESE APPEALS BY DIFFERENT ASSESSEES ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXIII DATED 20.3.2013 AND 18.3.2013 FOR THE AY 2008-09. 2. IN ALL THESE APPEALS, VARIOUS GROUNDS HAVE BEEN RAISED. HOWEVER, THEY ARE ALL AGAINST THE CONFIRMATION OF A DDITION UNDER SECTION 68 OF THE INCOME-TAX ACT, 1961 AS UNDER:- ITA-3477/D/2013 & 8 OTHERS 4 NAME ADDITION 1. M/S OMNI FARMS PVT.LTD. `2,11,80,616/- 2. M/S PASSION CHITS PVT.LTD. `40,09,850/- 3. M/S BERIWAL INVESTMENT & CHIT FUND PVT.LTD. `7,8 8,73,170/- 4. M/S CHAMP FINVEST PVT.LTD. `6,82,34,143/- 5. M/S CUBIC COMMERCIAL RESOURCES LTD. `4,38,40,59 2/- 6. M/S VIJAY CONDUCTORS INDIA PVT.LTD. `16,23,103 /- 7. M/S VISHRUT MARKETING PVT.LTD. `5,04,06,893/- 8. M/S NAMRATA MARKETING PVT.LTD. `10,82,91,085/- 9. M/S KATSON HOTEL & DEVELOPERS PVT.LTD. `41,06,3 74/- 3. AT THE TIME OF HEARING BEFORE US, IT IS STATED B Y THE LEARNED COUNSEL THAT ONE SHRI S.K. GUPTA WAS CARRYING ON TH E BUSINESS OF PROVIDING ACCOMMODATION ENTRIES. HE CONTROLLED A N UMBER OF PROPRIETARY CONCERNS, COMPANIES AND BANK ACCOUNTS A T VARIOUS PLACES. A SURVEY UNDER SECTION 133A OF THE INCOME-TAX ACT, 1961 WAS CONDUCTED AT THE OFFICE PREMISES OF SHRI S.K. GUPTA AND THE COMPANIES/CONCERNS CONTROLLED BY HIM ON 20 TH NOVEMBER, 2007. DURING THE COURSE OF SURVEY, SEVERAL DOCUMENTS, PAP ERS, LAPTOPS CONTAINING ACCOUNTS OF SEVERAL PARTIES INCLUDING CA SH BOOK, BANK BOOKS, LEDGER ACCOUNTS AND SOME CHEQUE BOOKS WERE I MPOUNDED. SHRI S.K. GUPTA FILED APPLICATION BEFORE THE SETTLEMENT COMMISSION AND THE SETTLEMENT COMMISSION, VIDE ORDER DATED 28 TH DECEMBER, 2010, ACCEPTED THAT HE WAS CARRYING ON THE BUSINESS OF PR OVIDING ACCOMMODATION ENTRIES ON WHICH COMMISSION/BROKERAGE WAS BEING RECEIVED BY HIM. THE STATEMENT OF FACTS AS RECORDE D IN PARAGRAPH 4.1 OF THE ORDER OF THE SETTLEMENT COMMISSION READ AS U NDER:- 4.1 THE APPLICANT SUBMITTED THAT HE CONTROLLED A NUMBER OF PROPRIETORSHIP CONCERNS, COMPANIES AND BANK ACCOUNTS AT VARIOUS PLACES. HE HAD OPENED A ITA-3477/D/2013 & 8 OTHERS 5 NUMBER OF PROPRIETORSHIP BANK ACCOUNTS IN BENAMI NAMES. CASH FROM CUSTOMERS/BENEFICIARIES OF ACCOMMODATION ENTRIES USED TO BE RECEIVED AND DEPOSITED IN THESE PROPRIETARY BANK ACCOUNTS. FROM THESE BANK ACCOUNTS, CHEQUES USED TO BE ISSUED TO INTERMEDIATE COMPANIES NUMBERING THIRTY ONE AND TWO INDIVIDUALS. FROM THESE INTERMEDIATES, CHEQUES OF ACCOMMODATION ENTRIES USED TO BE ISSUED TO THE BENEFICIARIES/CUSTOMERS. FOR THESE ACCOMMODATION ENTRIES, THE APPLICANT WAS PAID COMMISSION/BROKERAGE/PREMIUM BY THE BENEFICIARIES OUT OF WHICH HE WOULD PAY/PART WITH SUBSTANTIAL AMOUNTS TO THE MEDIATORS/FACILITATORS I.E. THE PERS ONS WHO WOULD BRING THE BENEFICIARIES/CUSTOMERS TO HIM. 4. HE SUBMITTED THAT THE CONCLUSION OF THE SETTLEME NT COMMISSION IS AT PARAGRAPH 26 & 27 OF ITS ORDER WHICH READ AS UNDER:- 26. THE FACTS ON RECORD ARE CONSIDERED. IT IS OBS ERVED THAT VARIOUS DOCUMENTS IMPOUNDED AND EXTRACTS TAKEN FROM THE IMPOUNDED LAPTOP ARE ENCLOSED BY THE APPLICANT IN PAPER BOOKS OF FIVE VOLUMES WITH ABOUT 1200 PAGES. IT IS FURTHER OBSERVED THAT THE PAPER BOOKS GIVE COMPLETE DETAILS AS TO HOW AND WHEN CASH WAS RECEIVED FROM THE MEDIATORS, THE CASH WAS DEPOSITED IN THE BANK ACCOUNTS OF INTERMEDIATORIES AND CHEQUES WERE ISSUED TO THE BENEFICIARIES OF ALMOST THE SAME AMOUNTS. IT IS SEEN FROM THE REASONS RECORDED BY T HE A.O. FOR ISSUE OF NOTICE UNDER SECTION 148 FOR THE A.Y. 2006-07 (THE FACTS ARE SAME FOR A.Y. 2008-09 WHICH IS UNDER CONSIDERATION) THAT THE A.O. HAS STATED THAT THE APPLICANT HAS PROVIDED ACCOMMODATION ENTRY AND CHARGED PREMIUM VARYING FROM 4% TO 8%. AFTER DISCUSSING VARIOUS FACTS, THE A.O. HAS STATED THAT THE APPLICANT HAS BEEN PROVIDING THE ACCOMMODATION ENTRIES TO DIFFERENT PARTIES BY ISSUING THE CHEQUES AFTER OBTAINING THE CASH AND THE AMOUNT OF PREMIUM CHARGE D ON GIVING SUCH ENTRY HAS NOT BEEN REFLECTED AS INCO ME BY THE APPLICANT. IT IS FURTHER SEEN THAT THE APPL ICANT HAS GIVEN LIST OF MEDIATORS AND BENEFICIARIES WITH ADDRESS AND TELEPHONE NUMBERS. IT IS NOTED THAT TH E CIT IN RULE 9 REPORT OR DURING THE HEARING HAS NOT PRODUCED ANY MATERIAL/EVIDENCE TO REBUT THE ITA-3477/D/2013 & 8 OTHERS 6 PRESUMPTION U/S. 292C IN RESPECT OF CORRECTNESS OF THE MATERIAL IMPOUNDED DURING THE SURVEY. IT IS FURTHE R NOTED THAT THERE ARE OVERWHELMING EVIDENCE IN THE IMPOUNDED MATERIAL AS ENCLOSED BY THE APPLICANT IN THE PAPER BOOK WHICH SHOW THAT THE APPLICANT IS ONLY EN TRY PROVIDER AND HE HAD ISSUED CHEQUES AFTER RECEIVING CASH FROM MEDIATORS AND DEPOSITED THE SAME IN THE BANK ACCOUNT CONTROLLED BY HIM. THUS, WE DO NOT AG REE WITH THE CITS CONTENTIONS THAT THERE ARE NO EVIDENCE/MATERIAL BROUGHT OUT BY THE APPLICANT TO P ROVE THAT HE WAS AN ENTRY PROVIDER AND THAT HE HAD DEPOSITED HIS OWN CASH WHICH WAS USED TO ISSUE CHEQUES TO THE BENEFICIARIES. THE REASONS RECORDED FOR ISSUE OF NOTICE U/S 148 CLEARLY STATE THAT THE APPL ICANT IS AN ENTRY PROVIDER. FURTHER, THE REPORT OF THE A.O. THAT THE BENEFICIARIES DISCLOSED RS.106.33 CRORES AGAINS T THE CHEQUES RECEIVED BY THEM FROM THE APPLICANT, FURTHE R STRENGTHEN APPLICANTS CASE THAT HE WAS ONLY ENTRY PROVIDER AND CASH DEPOSITED IN THE BANK ACCOUNTS FO R ISSUING CHEQUES ARE NOT HIS MONEY BUT MONEYS OF THE BENEFICIARIES TO WHOM CHEQUES WERE ISSUED. 27. AFTER EXAMINING THE FACTS OF THE CASE, WE ARE O F THE CONSIDERED VIEW THAT THE APPLICANT IS AN ENTRY PROV IDER. THEREFORE, IN HIS CASE, ONLY, THE AMOUNT OF PREMIUM/COMMISSION RECEIVED BY THE APPLICANT AFTER REDUCING EXPENSES INCURRED WILL BE HIS ADDITIONAL INCOME. 5. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER POI NTED OUT THAT IN THE ORDER OF THE SETTLEMENT COMMISSION, THERE IS TH E LIST OF THE CONCERNS WHICH WERE BEING CONTROLLED BY SHRI S.K. G UPTA. AT PARAGRAPH 4.6, THE LIST OF SUCH COMPANIES IS GIVEN WHICH IS R EPRODUCED FOR READY REFERENCE:- 4.6 THERE ARE 32 COMPANIES AND TWO INDIVIDUALS WHIC H WERE USED AS CONDUITS/ROUTES FROM WHERE THE CHEQUES USED TO BE GIVEN TO THE BENEFICIARIES. THESE 32 COMPANIES/TWO INDIVIDUALS WERE MERELY CONDUITS AND WERE USED BY THE APPLICANT IN A BID TO GIVE LEGITIMACY/CREDIBILITY TO THE TRANSACTION. THE NAM ES OF THESE 32 COMPANIES AND TWO INDIVIDUALS ARE AS UNDER : ITA-3477/D/2013 & 8 OTHERS 7 S.NO. NAME OF COMPANIES 1 AGM HOLDING LTD. 2 ADVANTAGE SOFTWARE PVT LTD 3 ANILA INDUSTRIES LTD 4 ANJALI GUPTA 5 BELIEF CHITS PVT.LTD. 6 BERIWAL INVESTMENTS & CHITS FUNDS 7 CENTRAL GUM & CHEMICAL INDUSTRIES 8 CHAMP FINVEST PVT LTD 9 CHANDER PRABHU FINANCIAL SERVICES LTD 10 CUBIC COMMERCIAL RESOURCES 11 DHAMAKA TRADING & CONSTRUCTIONS 12 FALCON FREIGHT (P) LTD 13 GALAXY MINES & STONES PVT.LTD. 14 GIRIAS HO COMPANY PVT LTD 15 IDS INVESTMENT PVT.LTD. 16 KSA CHITS (P) LTD 17 MITSU SECURITIES MANAGEMENT (P) LTD 18 NAMRATA MARKETING PVT LTD 19 NEW STAR INFORMATION SYSTEM (I) LTD 20 OMNI FARMS PVT LTD 21 OPTIMUM CREDITS LTD 22 PASSION CHITS CO PVT LTD 23 RAPID PACKAGING LTD 24 SJ SECURITIES PVT LTD 25 SK GUPTA 26 SAFE N SECURE HYGIENE PRODUCTS PVT LTD 27 SHIKHAR FINCAP PVT LTD 28 SINO CREDITS & LEASING LTD 29 VA FOODS PVT LTD 30 VASUDEVA FARMS PVT LTD 31 VIAGRA TRADING CO.PVT.LTD. 32 VIJAY COND UCTORS PVT LTD 33 VISRUT MARKETING PVT LTD 34 ZENITH ESTATES LTD. ITA-3477/D/2013 & 8 OTHERS 8 6. HE POINTED OUT THAT THE NAMES OF ALL THE NINE CO MPANIES UNDER APPEAL IS IN THE LIST OF 34 ENTITIES WHICH WERE CON TROLLED BY SHRI S.K. GUPTA AND USED AS CONDUIT/ROUTE FOR ISSUE OF CHEQUE TO THE BENEFICIARIES. HE POINTED OUT THAT ALL THE NINE CO MPANIES UNDER CONSIDERATION ARE IN SUCH LIST AS ITEM NOS.6, 8, 10 , 12, 18, 20, 22, 32 & 33. HE STATED THAT THIS ORDER OF THE SETTLEMENT CO MMISSION HAS BEEN ACCEPTED BY THE REVENUE AS IT HAS NOT BEEN CHALLENG ED BY THE REVENUE BEFORE THE HONBLE HIGH COURT. HE REFERRED TO THE ORDER OF THE ASSESSING OFFICER WHEREIN HE HAS GIVEN EFFECT TO TH E ORDER OF THE SETTLEMENT COMMISSION AND POINTED OUT THAT AFTER TH E ORDER OF THE SETTLEMENT COMMISSION, THE ASSESSING OFFICER DETERM INED THE INCOME OF SHRI S.K. GUPTA WITHOUT MAKING ANY ADDITION FOR UNEXPLAINED CASH CREDIT. HE FURTHER POINTED OUT THAT DURING THE COU RSE OF ASSESSMENT PROCEEDINGS OF THE INTERMEDIARY COMPANIES, WHICH IN CLUDED THE ASSESSEE COMPANY, THE ASSESSING OFFICER VIZ., ACIT, CENTRAL CIRCLE-22, NEW DELHI SOUGHT FOR THE DIRECTION OF THE ADDITIONA L COMMISSIONER OF INCOME TAX UNDER SECTION 144A OF THE INCOME-TAX ACT . AT PAGE 1 & 2 OF THE ORDER, THE ADDITIONAL COMMISSIONER GAVE THE LIST OF THE COMPANIES CONTROLLED BY SHRI S.K. GUPTA WHICH INCLU DED ALL THE NINE COMPANIES UNDER CONSIDERATION. THE ADDITIONAL COMM ISSIONER HELD AS UNDER:- 12. IN VIEW OF THESE FACTS, IT IS CLEAR THAT CASH HAS BEEN RECEIVED BY SH. S.K. GUPTA AND ROUTED THROUGH VARIO US ENTITIES TO BE PASSED ON ULTIMATELY TO THE BENEFICI ARIES IN THE FORM OF CHEQUES. IN SUCH A SCENARIO WHEN IT IS CLEAR THAT THESE OTHER ENTITIES ARE MERE CONDUIT FO R CONVERTING CASH TO CHEQUE, IT WOULD BE APPROPRIATE TO TAX THESE TRANSACTIONS IN THE HANDS OF BENEFICIARIE S AND ALSO IN THE HANDS OF SH. S.K. GUPTA. THE JUSTIFICA TION FOR BRINGING TO TAX THE CASH RECEIVED (AS PER LAPTOP) I N THE HANDS OF SH. S.K. GUPTA (INDIVIDUAL) WOULD BE THAT HE HAS NOT BEEN ABLE TO PRODUCE THESE PERSONS BEFORE T HE DEPARTMENT TO OWN UP THIS CASH AND AS SUCH REMAINS ITA-3477/D/2013 & 8 OTHERS 9 UNEXPLAINED CASH AS HELD IN THE ORDER U/S 143(3) FO R THE ASSESSMENT YEAR 2008-09. IN THE ABSENCE OF OWNING UP OF CASH BY MEDIATORS/BENEFICIARY, IT IS NOT POSSIBL E TO ALLOW ASSESSEE THE BENEFIT OF ARGUMENT THAT THE CAS H BELONGS TO BENEFICIARY AND ONCE THE DEPARTMENT IS TAKING ACTION AGAINST BENEFICIARIES, NO ACTION CAN BE TAKEN IN THE HANDS OF THE SH. S.K. GUPTA. IT IS CL EAR THAT CASH HAS BEEN RECEIVED BY S.K. GUPTA IN DIFFERENT Y EARS UNDER CONSIDERATION AND NONE OF THE MEDIATORS/BENEFICIARY HAVE COME FORWARD TO OWN THIS CASH. AS TO THE CASE LAWS CITED BY ASSESSEE, THEY ARE NOT DIRECTLY APPLICABLE TO THE FACTS OF THE CASE AN D ARE DISTINGUISHABLE. NONE OF THE CASES CITED BY ASSESS EE DEAL WITH A CLEAR EVIDENCE IMPOUNDED DURING THE COU RSE OF SURVEY OPERATION U/S 133A, DETAILING RECEIPT F C ASH ON A DAY TO DAY BASIS. THE RECEIPT OF CASH IS NOT A CONJECTURE OR FIGMENT OF IMAGINATION ON THE PART OF ASSESSING OFFICER. IN VIEW OF THIS, IT SHALL BE MO ST APPROPRIATE THAT CASH IS BROUGHT TO TAX IN THE HAND S OF SH. S.K. GUPTA. ADDITION HAS ALSO BEEN MADE ON ACCOUNT OF PREMIUM INCOME RECEIVED BY ASSESSEE ON ACCOUNT OF THESE TRANSACTIONS FOR AY 2008-09. ASSESSEES CONTENTION THAT HE SHOULD BE ALLOWED CERTAIN EXPENDITURE FROM THE PREMIUM RECEIVED BY IT, ALSO CANNOT BE ENTERTAINED AS ASSESSEE HAS BROUGHT NOTHING ON RECORD TO PROVE THA T EXPENSES WERE PAID TO OTHER PERSONS AND NEITHER THE RE IS ANYTHING ON RECORD TO SHOW THAT THESE OTHER PERS ONS HAVE ACKNOWLEDGED THIS INCOME IN THIS REGARD. CERTAIN ADDITIONS WERE MADE U/S 68 FOR CREDIT ENTRI ES APPEARING IN BANK ACCOUNT OF ASSESSEE IN AY 2008-09 . THE AO MAY DECIDE THE ISSUE ON MERIT AFTER EXAMININ G THE MATERIAL PRODUCED BEFORE HIM. THIS ISSUE DOES NOT SEEM TO ARISE FROM IMPOUNDED DOCUMENTS. 13. THE ASSESSING OFFICER HAS INFORMED THAT INFORMATION PERTAINING TO BENEFICIARIES HAS BEEN PA SSED ON TO THE CONCERNED ASSESSING OFFICER. HE SHOULD ENSURE THAT THERE IS NO DEFICIENCY IN THIS REGARD. ON THE BASIS OF MODUS OPERANDI AND MATERIAL IMPOUNDED, IT IS CLEAR THAT THERE IS A VERY STRONG CASE TO BRING TO TAX THE ACCOMMODATION ENTRIES OBTAINED BY BENEFICIARIES. T HE ITA-3477/D/2013 & 8 OTHERS 10 INFORMATION WITH RELEVANT RECORDS SHOULD BE COMMUNICATED TO THE CONCERNED AOS. 14. TO TAX THE CASH RECEIVED BY S.K. GUPTA IN THE HANDS OF CONDUIT COMPANIES ALSO, WHEREIN THE SAME FINDS REFLECTION AS CREDIT ENTRIES IN BANK ACCOUNTS , WOULD MAKE THE STAND OF THE DEPARTMENT AMBIGUOUS VIS-A-VI S BENEFICIARIES. IT WILL DILUTE THE CASE OF THE DEPA RTMENT AGAINST BENEFICIARIES. ADDITIONS MADE IN THE CASE OF CONDUIT ENTITIES SHALL CONFUSE THE STAND OF THE DEPARTMENT AND SHALL JEOPARDIZE THE EFFORTS OF THE DEPARTMENT TO BRING TO TAX THESE TRANSACTIONS IN TH E HANDS OF BENEFICIARIES AND SH. S.K. GUPTA. THIS SH ALL ALSO LEAD TO FRIVOLOUS LITIGATION, OF NO SIGNIFICAN CE, ONCE WE HAVE BROUGHT THESE TRANSACTIONS TO TAX AS ITS TW O LEGS, FIRSTLY, IN THE CASE OF SH. S.K. GUPTA AND SE CONDLY IN THE CASES OF BENEFICIARIES. 15. IN VIEW OF FOREGOING DISCUSSION, IT WOULD BE IN THE BEST INTEREST OF REVENUE TO TAX THESE TRANSACTIONS IN THE HANDS OF BENEFICIARIES (PARA 13) AND ALSO SH. S.K. GUPTA (INDIVIDUAL- SR.NO.1-4, AS DISCUSSED IN PARA 12), W ITHOUT MAKING ANY ADDITIONS ON THIS ACCOUNT IN THE HANDS O F CONDUIT ENTITIES (SR.NO.5 TO 41 AS DISCUSSED IN P ARA 11 & 14). THESE DIRECTIONS ARE ISSUED ACCORDINGLY U/S 144A OF THE INCOME TAX ACT 1961. THESE ARE COMPOSITE DIRECTIONS U/S 144A OF THE ACT WITH RESPECT TO ALL THE ENTITIES REFERRED TO BY THE ASSESSING OFFICER VIDE HIS OFFICE LETTER NO.261 DATED 7.12.2011. 7. THUS, THE ADDITIONAL CIT UNDER SECTION 144A ISSU ED DIRECTION FOR NOT MAKING OF ANY ADDITION IN THE CASE OF CONDUIT E NTITIES I.E. COMPANIES WHICH WERE BEING CONTROLLED BY SHRI S.K. GUPTA AND WERE UTILIZED FOR ISSUING CHEQUES TO THE BENEFICIARIES A FTER DEPOSITING THE CASH RECEIVED FROM THE BENEFICIARIES. HE STATED TH AT THE DIRECTION OF ADDITIONAL CIT UNDER SECTION 144A IS BINDING UPON T HE ASSESSING OFFICER. HE ALSO REFERRED TO THE ASSESSMENT ORDER PASSED IN THE CASE OF ONE OF THE BENEFICIARIES I.E. M/S BERIWAL INVESTMEN TS & CHIT FUNDS LTD. AND POINTED OUT THAT THE ASSESSING OFFICER AS PER T HE DIRECTION OF THE ADDITIONAL CIT DID NOT MAKE ANY ADDITION UNDER SECT ION 68. HE ITA-3477/D/2013 & 8 OTHERS 11 SUBMITTED THAT THE ORDER OF THE ADDITIONAL CIT UNDE R SECTION 144A IS DATED 23 RD DECEMBER, 2011 WHILE THE ASSESSMENT UNDER CONSIDER ATION HAS BEEN COMPLETED ON 27 TH DECEMBER, 2010 WHICH WAS BEFORE THE DIRECTION OF THE ADDITIONAL CIT UNDER SECTION 144A. EVEN THE ORDER OF THE SETTLEMENT COMMISSION WAS PASSED ON 28 TH DECEMBER, 2010. THUS, THE ASSESSING OFFICER, WHILE PASSING THE ASSE SSMENT ORDER FOR THE YEAR UNDER CONSIDERATION, DID NOT HAVE THE BENEFIT OF EITHER THE ORDER OF THE SETTLEMENT COMMISSION OR THE ORDER OF THE AD DITIONAL CIT PASSED UNDER SECTION 144A. HE, THEREFORE, SUBMITTED THAT WHEN THE REVENUE HAS ACCEPTED THE ORDER OF THE SETTLEMENT COMMISSION AS WELL AS THE ORDER OF THE ADDITIONAL CIT UNDER SECTION 144A THAT SHRI S.K. GUPTA WAS ONLY ENTRY PROVIDER, WHO, AFTER THE RECEIPT OF CASH FROM THE BENEFICIARIES, DEPOSITED THE CASH IN VARIOUS GROUP ENTITIES AND ISSUED THE CHEQUE, THERE IS NO JUSTIFICATION FOR TREATING THE CASH DEPOSIT IN THE BANK ACCOUNT OF THE INTERMEDIARY COMPANIES AS UNEXP LAINED CASH CREDIT UNDER SECTION 68. 8. THE LEARNED COUNSEL FURTHER SUBMITTED THAT THE C IT(A) DID NOT ACCEPT THE ASSESSEES CONTENTION ON THE GROUND THAT ALL THE FACTS MAY NOT BE AVAILABLE WITH THE SETTLEMENT COMMISSION. T HE RELEVANT FINDING OF LEARNED CIT(A) IN THIS REGARD, WHICH IS SIMILAR IN ALL THE CASES BEFORE US, AT PAGE 24 OF HIS ORDER IN THE CASE OF OMNI FAR MS PVT.LTD. READS AS UNDER:- SECOND MAIN ARGUMENT OF LD. AR IN SUPPORT OF PROVI NG ITSELF AS CONDUIT, THE LD. AR IS RELYING ON THE ORD ER OF THE SETTLEMENT COMMISSION. I HAVE PERUSED THE ORDER OF HONBLE SETTLEMENT COMMISSION. THE HONBLE SETTLEMENT COMMISSION HAS QUANTIFIED THE INCOME OF SH. S.K. GUPTA AS SOME PERCENTAGE OF TOTAL TURNOVERS. OF COURSE, IN ITS ORDER, HONBLE COMMISSION HAS MENTIO NED THAT VARIOUS COMPANIES INCLUDING APPELLANT COMPANY IS USED AS CONDUIT FOR ROUTING THE ENTRIES. HOWEVER, ITA-3477/D/2013 & 8 OTHERS 12 BEFORE SETTLEMENT COMMISSION, ENTIRE FACTS THAT THE APPELLANT COMPANY IS MAINTAINING ITS BOOKS OF ACCOU NT ON THE BASIS OF SUCH ENTRIES MIGHT NOT BE AVAILABLE . HONBLE SETTLEMENT COMMISSION HAS NOT GIVEN ANY COMMENTS FOR CREDIT IN THE BOOKS OF ACCOUNTS OF THE APPELLANT COMPANY WHICH IS NOT CHANGED AFTER ADMISSION THAT IT AS A CONDUIT COMPANY. THEREFORE, IN NO WAY, THE ORDER OF SETTLEMENT COMMISSION SUPPORT THE IN APPLICABILITY OF SECTION 68 IN APPELLANTS CASE, AS THE ORDER OF HONBLE SETTLEMENT COMMISSION HAS ONLY QUANTIFIED SAME COMMISSION INCOME IN THE HANDS OF S H. S.K. GUPTA. 9. THE LEARNED COUNSEL POINTED OUT THAT BEFORE THE SETTLEMENT COMMISSION, ALL THE FACTS WERE PLACED. THE SETTLEM ENT COMMISSION HAS RECORDED ALL THE FACTS AND ALSO GIVEN THE LIST OF COMPANIES WHICH WERE USED BY SHRI S.K. GUPTA AS CONDUITS. THE SETT LEMENT COMMISSION HAS ALSO DISCUSSED THE MODUS-OPERANDI HOW SHRI S.K. GUPTA WAS PROVIDING ACCOMMODATION ENTRIES BY UTILIZING THE CO NDUIT COMPANIES. HE FURTHER SUBMITTED THAT THE ORDER OF THE SETTLEME NT COMMISSION IS BINDING UPON THE REVENUE AUTHORITIES. IN SUPPORT O F THIS CONTENTION, HE RELIED UPON THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF OMAXE LTD. & ANR. VS. DCIT & ANR. [2014] 105 D TR 1 (DEL). HE, THEREFORE, SUBMITTED THAT THE ADDITION UNDER SECTIO N 68 MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE LEARNED CIT( A) IN THE CASE OF ALL THE COMPANIES MAY BE DELETED. 10. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE ORDERS OF AUTHORITIES BELOW AND STATED THAT ALL THE ARGUMENTS OF THE LEARNED COUNSEL FOR THE ASSESSEE HAVE ALREADY BEEN CONSIDER ED BY THE LEARNED CIT(A). HE HAS ALSO CONSIDERED THE DECISION OF THE SETTLEMENT COMMISSION WHICH IS IN THE CASE OF SHRI S.K. GUPTA AND NOT IN THE CASE OF THE ASSESSEE. HE, THEREFORE, SUBMITTED THAT THE ORDER OF THE LEARNED CIT(A) IN ALL THESE APPEALS SHOULD BE SUSTAINED. ITA-3477/D/2013 & 8 OTHERS 13 11. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF B OTH THE SIDES AND PERUSED RELEVANT MATERIAL PLACED BEFORE US. TH E FACTS IN THE CASE OF ALL THE COMPANIES ARE SIMILAR. THEREFORE, THEY ARE BEING TAKEN UP TOGETHER FOR ADJUDICATION. FOR THE SAKE OF BREVITY , WE SHALL DISCUSS THE FACTS IN THE CASE OF M/S OMNI FARMS PVT.LTD. INSTEA D OF ALL THE NINE COMPANIES. 12. IN THE CASE OF M/S OMNI FARMS PVT.LTD., THE ASS ESSING OFFICER, AT PARAGRAPH 2, HAS RECORDED THE FOLLOWING FINDING:- 2. A SURVEY OPERATION WAS CONDUCTED IN THE S K GUP TA GROUP OF CASES ON 20/11/2007 AT 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, NEW DELHI 110001 AND 1007-1008, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, NEW DELHI 110001. THE ASSESSEE COMPANY IS ONE OF THE GROUP CONCERNS OF S K GUPTA GROUP. DURI NG THE COURSE OF SURVEY PROCEEDINGS AND ASSESSMENT PROCEEDINGS, SH SK GUPTA ADMITTED THAT HE HAD BEEN PROVIDING ACCOMMODATION ENTRIES TO VARIOUS PERSONS THROUGH A LARGE NO. OF CONCERNS EFFECTIVELY CONTROL LED BY HIM. FURTHER, IT WAS SEEN THAT SH. S.K. GUPTA OPER ATES A NUMBER OF ACCOUNTS IN THE SAME BANK/BRANCH OR IN DIFFERENT BRANCHES IN THE NAMES OF COMPANIES/FIRMS/PROPRIETARY CONCERNS AND INDIVIDUAL S. FOR THE OPERATION OF THESE BANK ACCOUNTS, PERSONS W HO ARE FILING INCOME TAX RETURNS ARE ROPED IN. LIKE A NY OTHER BUSINESS IT DOES REQUIRE MAN POWER ACCORDING TO THE SCALE OF OPERATIONS. EXCEPT FOR TWO OR THREE P ERSONS WHO ARE REQUIRED REGULARLY TO VISIT BANKS AND DO OT HER WORK LIKE COLLECTION OF CASH ETC. MOST OF THE OTHER PERSONS INVOLVED ARE ON PART TIME BASIS. THE PART TIME EMPLOYEES ARE CALLED AS AND WHEN REQUIRED TO SIGN DOCUMENTS, CHEQUE BOOKS ETC. SH. S.K. GUPTA HAS AL SO ROPED IN HIS OWN RELATIVES FOR OPERATION OF VARIOUS BANK ACCOUNTS AND FOR FILING THE INCOME TAX RETURNS. IT WAS SEEN THAT SH. S.K. GUPTA WAS CONTROLLING MORE THAN 35 COMPANIES FROM A SMALL OFFICE PREMISES WITHOUT SUFFICIENT INFRASTRUCTURE OR EMPLOYEES TO CARRY OUT MEANINGFUL BUSINESS ACTIVITY IN SO MANY COMPANIES. ITA-3477/D/2013 & 8 OTHERS 14 FURTHER, FROM THE PERUSAL OF LEDGER ACCOUNTS MAINTA INED IN ONE OF THE LAPTOPS IMPOUNDED DURING SURVEY, IT I S NOTICED THAT A LARGE AMOUNT OF CASH IS DEPOSITED AN D CHEQUES ARE ISSUED ON THE SAME DAY/WITHIN FEW DAYS TO VARIOUS PARTIES FROM THE ACCOUNTS OF THE COMPANY CONTROLLED BY HIM. AS PER ENQUIRIES CARRIED OUT BY THE INVESTIGATION WING THE ASSESSEE WAS FOUND TO HAVE B EEN USING THE BANK ACCOUNTS OPENED IN DIFFERENT BANKS T O ROUTE THE ENTRIES THROUGH TWO TO FOUR ACCOUNTS TO V IE THE COLOR OF GENUINENESS TO THESE TRANSACTIONS. 13. THUS, THE ASSESSING OFFICER HIMSELF HAS RECORDE D THE FINDING THAT THE ASSESSEE COMPANY IS ONE OF THE GROUP CONCERNS O F S.K. GUPTA GROUP AND SHRI S.K. GUPTA ADMITTED THAT HE HAD BEEN PROVIDING ACCOMMODATION ENTRIES TO VARIOUS PERSONS THROUGH A LARGE NUMBER OF CONCERNS EFFECTIVELY CONTROLLED BY HIM. THE SETTLE MENT COMMISSION ALSO HAS RECORDED THE SIMILAR FINDING THAT SHRI S.K . GUPTA WAS PROVIDING ENTRIES TO VARIOUS BENEFICIARIES BY USING VARIOUS F IRMS/COMPANIES. ADMITTEDLY, THE COMPANIES UNDER APPEAL BEFORE US AR E THE PART OF COMPANIES WHICH WERE UTILIZED BY SHRI S.K. GUPTA FO R PROVIDING ACCOMMODATION ENTRIES. IN PARAGRAPH 26, THE SETTLE MENT COMMISSION HAS RECORDED THE FINDING IT IS FURTHER OBSERVED THAT THE PAPER BOOKS GIVE COMPLETE DETAILS AS TO HOW AND WHEN CASH WAS R ECEIVED FROM THE MEDIATORS, THE CASH WAS DEPOSITED IN THE BANK ACCOU NTS OF INTERMEDIATORIES AND CHEQUES WERE ISSUED TO THE BEN EFICIARIES OF ALMOST THE SAME AMOUNTS . THUS, AFTER EXAMINING THE FACTS, THE SETTLEMENT COMMISSION HAS RECORDED THE FINDING THAT THE CASH DEPOSITED IN THE BANK ACCOUNT OF THE INTERMEDIARY C OMPANIES WAS THE CASH RECEIVED FROM MEDIATORS ON BEHALF OF THE BENEF ICIARIES WHO WANTED TO AVAIL THE ACCOMMODATION ENTRIES. IT IS F URTHER OBSERVED BY THE SETTLEMENT COMMISSION IT IS FURTHER NOTED THAT THERE ARE OVERWHELMING EVIDENCE IN THE IMPOUNDED MATERIAL AS ENCLOSED BY THE APPLICANT IN THE PAPER BOOK WHICH SHOW THAT THE APP LICANT IS ONLY ENTRY ITA-3477/D/2013 & 8 OTHERS 15 PROVIDER AND HE HAD ISSUED CHEQUES AFTER RECEIVING CASH FROM MEDIATORS HE HAD ISSUED CHEQUES AFTER RECEIVING CASH FROM MED IATORS HE HAD ISSUED CHEQUES AFTER RECEIVING CASH FROM MED IATORS HE HAD ISSUED CHEQUES AFTER RECEIVING CASH FROM MED IATORS AND DEPOSITED THE SAME IN THE BANK ACCOUNT CONTROLL ED BY HIM AND DEPOSITED THE SAME IN THE BANK ACCOUNT CONTROLL ED BY HIM AND DEPOSITED THE SAME IN THE BANK ACCOUNT CONTROLL ED BY HIM AND DEPOSITED THE SAME IN THE BANK ACCOUNT CONTROLL ED BY HIM . THEREAFTER, THE SETTLEMENT COMMISSION NOTED FURTHER, THE REPORT OF THE A.O. THAT THE BENEFICIARIES DISCLOSED RS.106.33 CRORES AGAINST THE CHEQUES RECEIVED BY THEM FROM THE APPLICANT, FURTHE R STRENGTHEN APPLICANTS CASE THAT HE WAS ONLY ENTRY PROVIDER AN D CASH DEPOSITED IN THE BANK ACCOUNTS FOR ISSUING CHEQUES ARE NOT HIS M ONEY BUT MONEYS OF THE BENEFICIARIES TO WHOM CHEQUES WERE ISSUED . THUS, THE SETTLEMENT COMMISSION HAS RECORDED THE CLEAR CUT FI NDING THAT SHRI S.K. GUPTA WAS ONLY ENTRY PROVIDER AND FOR THE PURP OSE OF PROVIDING ENTRIES, HE UTILIZED THE VARIOUS GROUP COMPANIES WH ICH INCLUDED THE COMPANIES UNDER APPEAL BEFORE US. HE USED TO RECEI VE THE CASH FROM THE BENEFICIARIES WHO WANTED TO AVAIL THE ACCOMMODA TION ENTRIES AND AFTER DEPOSITING THE SAME IN THE BANK ACCOUNT OF VA RIOUS COMPANIES, HE ISSUED THE CHEQUES TO THE BENEFICIARIES. IN VIE W OF THIS FINDING, THE CASH DEPOSITED IN THE BANK ACCOUNT OF VARIOUS COMPA NIES WHICH WERE THE CONDUIT COMPANIES CANNOT BE SAID TO BE UNEXPLAI NED CASH CREDIT BECAUSE THE SOURCE OF CASH IS FROM THE BENEFICIARY WHO WANTED TO AVAIL THE ACCOMMODATION ENTRY AND TO WHOM CHEQUES FOR ACC OMMODATION ENTRIES WERE ISSUED ALMOST OF THE SIMILAR AMOUNT. THE ORDER OF THE SETTLEMENT COMMISSION HAS BECOME FINAL BECAUSE THE REVENUE HAS NOT CHALLENGED THE ORDER OF THE SETTLEMENT COMMISSI ON BEFORE THE HON'BLE JURISDICTIONAL HIGH COURT. 14. THAT HON'BLE JURISDICTIONAL HIGH COURT HAS CONS IDERED THE BINDING NATURE OF THE DECISION OF THE SETTLEMENT COMMISSION IN THE CASE OF OMAXE LTD. & ANR. (SUPRA) AND HELD AS UNDER:- ORDERS OF SETTLEMENT COMMISSION ARE FINAL AND CONCLUSIVE AS TO MATTERS STATED THEREIN. THE MATT ERS NECESSARILY COULD COMPREHEND DISPUTED QUESTIONS, ITA-3477/D/2013 & 8 OTHERS 16 ITEMS OR HEADS OF INCOME, DISALLOWANCE, ETC. OR VAR IANTS OF IT, BUT ALWAYS WITH REFERENCE TO A PARTICULAR ASSESSMENT YEAR. IN THIS CASE, THE SETTLEMENT COMMISSION WAS SEIZED OF ASST. YR. 2006-07. WHILST EXERCISING ITS AUTHORITY OVER THE APPLICATION, THE COMMISSION CONCEDEDLY EXERCISED THE VAST PLENITUDE OF ITS POWER OR JURISDICTION. THE PETITIONER HAD MADE A DISCLOSURE IN ITS APPLICATION AS IT WAS DUTY-BOUN D TO. WHAT IS IN CONTROVERSY TODAY IS THAT THE SUBSEQUENT EVENT OF SEARCH AND SEIZURE OPERATION CONDUCTED IN THE PREMISES OF M AND THE CONTENTION OF THE REVENUE HAVE THROWN LIGHT ON MATERIAL THAT HAD BEEN SUPPRES SED FROM THE COMMISSION. IF SUCH IS THE CASE, IT WOULD BE ONLY LOGICAL THAT THE COMMISSION ITSELF SHOULD BE APPROACHED FOR A DECLARATION THAT ITS ORDER OF 17 TH MARCH, 2008 IS A NULLITY. ALLOWING ANY OTHER AUTHO RITY, EVEN BY WAY OF A NOTICE UNDER S. 153C, WOULD BE TO PERMIT MULTIPLE JURISDICTIONS WHICH CAN RESULT IN C HAOS. AFTER ALL NON-DISCLOSURE OR SUPPRESSION OF INFORMAT ION IN RESPECT OF WHAT IS REQUIRED TO BE REVEALED TO THE CONCERNED AUTHORITIES IS AKIN TO FRAUD AND IF IT HA S A MATERIAL BEARING ON THE OUTCOME OF THE ASSESSMENT, IT WOULD MOST CERTAINLY BE MISREPRESENTATION. 15. THUS, HON'BLE JURISDICTIONAL HIGH COURT HAS HEL D THAT THE ORDER OF THE SETTLEMENT COMMISSION IS FINAL AND CONCLUSIVE A S TO THE MATTER STATED THEREIN FOR THE ASSESSMENT YEAR DECIDED BY T HE SETTLEMENT COMMISSION. ADMITTEDLY, THE ORDER OF THE SETTLEMEN T COMMISSION IN THE CASE OF SHRI S.K. GUPTA IS FOR AY 2008-09 AND A LL THE APPEALS UNDER CONSIDERATION BEFORE US ARE FOR AY 2008-09. THE CI T(A) DENIED TO FOLLOW THE ORDER OF THE SETTLEMENT COMMISSION REMAR KING THAT ALL THE RELEVANT FACTS MIGHT NOT HAVE BEEN PRODUCED BEFORE THE SETTLEMENT COMMISSION. HOWEVER, LEARNED CIT(A) HAS NOT POINTE D OUT ANY SPECIFIC FACTS WHICH WERE NOT PLACED BEFORE THE SETTLEMENT C OMMISSION. ON THE OTHER HAND, READING OF THE ORDER OF THE SETTLEM ENT COMMISSION SHOWS THAT ALL THE RELEVANT MATERIAL INCLUDING THE SEIZED MATERIAL WERE DULY CONSIDERED BY THE SETTLEMENT COMMISSION. MORE OVER, HON'BLE JURISDICTIONAL HIGH COURT HAS HELD THAT EVEN IF SOM E MATERIAL HAS BEEN ITA-3477/D/2013 & 8 OTHERS 17 SUPPRESSED FROM THE SETTLEMENT COMMISSION, THE ONLY COURSE AVAILABLE TO THE REVENUE IS TO APPROACH THE SETTLEMENT COMMIS SION FOR DECLARING ITS ORDER AS NULLITY. IN THE CASE UNDER APPEAL BEFORE US, THE ORDER OF THE SETTLEMENT COMMISSION IS OF 2010. IT HAS NOT BEEN POINTED OUT BY THE REVENUE THAT IT HAS APPROACHED T HE SETTLEMENT COMMISSION FOR DECLARING ITS ORDER AS NULLITY. THE REFORE, RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE JURISDICTIONAL HI GH COURT, IN OUR OPINION, THE ORDER OF THE SETTLEMENT COMMISSION IS BINDING ON THE INCOME TAX DEPARTMENT AND ALL THE LOGICAL CONSEQUEN CES OF THE SAID ORDER ARE TO BE GIVEN EFFECT TO. 16. WE ALSO FIND THAT THE ADDITIONAL CIT HAS ISSUED DIRECTION UNDER SECTION 144A IN THIS REGARD. THE ASSESSING OFFICER HAD ASKED FOR THE SPECIFIC DIRECTION OF THE ADDITIONAL CIT IN RESPECT OF THE GROUP COMPANIES WHICH HAS BEEN MENTIONED BY THE ADDITIONA L CIT IN PARAGRAPH 2 OF HIS ORDER UNDER SECTION 144A. AFTER CONSIDERING ALL THE FACTS, THE ADDITIONAL COMMISSIONER HELD IT WOULD B E IN THE BEST INTEREST OF REVENUE TO TAX THESE TRANSACTIONS IN TH E HANDS OF BENEFICIARIES AND ALSO SH. S.K. GUPTA, INDIVIDUAL W ITHOUT MAKING ANY ADDITIONS ON THIS ACCOUNT IN THE HANDS OF CONDUIT E NTITIES. WE MAY POINT OUT THAT THE DIRECTION OF THE ADDITIONAL CIT IS FOR VARIOUS YEARS RUNNING FROM AY 2004-05 TO 2007-08. HOWEVER, THE R ATIO OF THE SAID DIRECTION WOULD CONTINUE TO BE APPLICABLE FOR AY 20 08-09 ALSO BECAUSE THE FACTS REMAIN THE SAME. THE ADDITIONAL CIT HAS DISCUSSED IN DETAIL THAT WHEN THE REVENUE IS TAKING ACTION IN THE HANDS OF THE BENEFICIARIES, IF THE ADDITION IS MADE IN THE CASE OF CONDUIT ENTITIES, IT WILL DILUTE THE CASE OF THE DEPARTMENT AGAINST THE BENEFICIARIES. THE ORDER OF THE ADDITIONAL CIT UNDER SECTION 144A IS B INDING ON THE ASSESSING OFFICER WHICH IS EVIDENT FROM SECTION 144 A WHICH READS AS UNDER:- ITA-3477/D/2013 & 8 OTHERS 18 144A. A JOINT COMMISSIONER MAY, ON HIS OWN MOTION OR ON A REFERENCE BEING MADE TO HIM BY THE ASSESSING OFFICER OR ON THE APPLICATION OF AN ASSES SEE, CALL FOR AND EXAMINE THE RECORD OF ANY PROCEEDING I N WHICH AN ASSESSMENT IS PENDING AND, IF HE CONSIDERS THAT, HAVING REGARD TO THE NATURE OF THE CASE OR TH E AMOUNT INVOLVED OR FOR ANY OTHER REASON, IT IS NECE SSARY OR EXPEDIENT SO TO DO, HE MAY ISSUE SUCH DIRECTIONS AS HE THINKS FIT FOR THE GUIDANCE OF THE ASSESSING OFF ICER TO ENABLE HIM TO COMPLETE THE ASSESSMENT AND SUCH DIRECTIONS SHALL BE BINDING ON THE ASSESSING OFFICE R : PROVIDED THAT NO DIRECTIONS WHICH ARE PREJUDICIAL T O THE ASSESSEE SHALL BE ISSUED BEFORE AN OPPORTUNITY IS G IVEN TO THE ASSESSEE TO BE HEARD. EXPLANATION. FOR THE PURPOSES OF THIS SECTION NO DIRECTION AS TO THE LINES ON WHICH AN INVESTIGATION CONNECTED WITH THE ASSESSMENT SHOULD BE MADE, SHALL BE DEEMED TO BE A DIRECTION PREJUDICIAL TO THE ASSESSEE. (EMPHASIS BY UNDERLINING SUPPLIED BY US) 17. THUS, THERE IS AN ORDER OF THE SETTLEMENT COMMI SSION AS WELL AS THE ADDITIONAL COMMISSIONER OF INCOME TAX UNDER SEC TION 144A HOLDING THAT SHRI S.K. GUPTA WAS PROVIDING ACCOMMOD ATION ENTRIES, HE USED VARIOUS COMPANIES AS CONDUIT FOR PROVIDING THE ACCOMMODATION ENTRIES, CASH WAS RECEIVED THROUGH MEDIATORS FROM T HE PERSONS WHO WANTED TO AVAIL THE ACCOMMODATION ENTRIES, SUCH CAS H WAS DEPOSITED IN THE BANK ACCOUNT OF THE CONDUIT COMPANIES AND TH EREAFTER, CHEQUE OF THE SIMILAR AMOUNT WAS BEING ISSUED TO THE BENEF ICIARIES (I.E. THE PERSON WHO WANTED TO AVAIL THE ACCOMMODATION ENTRY) WITHIN A DAY OR SO. THE ASSESSING OFFICER HIMSELF IN THE ASSESSMEN T ORDER HAS ACCEPTED THESE FACTS. CONSIDERING THE TOTALITY OF THESE FACTS AND THE LOGICAL CONSEQUENCES OF THE ORDER OF THE SETTLEMENT COMMISSION AS WELL AS OF ADDITIONAL CIT UNDER SECTION 144A, WE HA VE NO HESITATION TO ITA-3477/D/2013 & 8 OTHERS 19 HOLD THAT THE ADDITION UNDER SECTION 68 CANNOT BE M ADE IN THE CASE OF THE CONDUIT COMPANIES. THEREFORE, WE DELETE THE AD DITION MADE UNDER SECTION 68 IN THE CASE OF ALL THE NINE COMPANIES, W HICH ARE ADMITTEDLY CONDUIT COMPANIES OF SHRI S.K. GUPTA. 18. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 28 TH JANUARY, 2015. SD/- SD/- ( (( (CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG) )) ) (G.D. AGRA (G.D. AGRA (G.D. AGRA (G.D. AGRAWAL WAL WAL WAL) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 28.01.2015 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S OMNI FARMS PVT.LTD. & 8 OTHE RS, M/S OMNI FARMS PVT.LTD. & 8 OTHERS, M/S OMNI FARMS PVT.LTD. & 8 OTHERS, M/S OMNI FARMS PVT.LTD. & 8 OTHERS, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 308, ARUNACHAL BUILDING, 19, BARAKHAMBA ROAD, NEW DELHI 19, BARAKHAMBA ROAD, NEW DELHI 19, BARAKHAMBA ROAD, NEW DELHI 19, BARAKHAMBA ROAD, NEW DELHI 110 001. 110 001. 110 001. 110 001. 2. RESPONDENT : DEPUTY COMMISSIONER OF IN DEPUTY COMMISSIONER OF IN DEPUTY COMMISSIONER OF IN DEPUTY COMMISSIONER OF INCOME TAX (HQ), COME TAX (HQ), COME TAX (HQ), COME TAX (HQ), CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -III, NEW DELHI. III, NEW DELHI. III, NEW DELHI. III, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR
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CRM Implementation Plan
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Affidavit - Application for condonation of delay in filing the appeal before ITAT - Type 2
Mehul₹0
Why Meesho got ₹1,500 Crore Tax Demand ?
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Finance Bill, 2026: Key Direct Tax Amendments on Assessments and Appeals
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