AJAY KUMAR AGGARWAL, NEW DELHI V. ACIT, CC- 1, NEW DELHI

ITA 4003/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 7988 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 19-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Income from undisclosed sources; Search and seizure; Accommodation entries
• Section: 143(3); 153A; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SH. H. S. SIDHU, JUDICIAL MEMBER AND, SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NOS. 4002, 4003 & 4004/DEL/2017 (FOR ASSESSMENT YEARS : 2007-08, 2008-09 & 2009-10) AJAY KUMAR AGGARWAL FLAT NO.116, MAITRI APARTMENT, 28, I. P. EXTN. NEW DELHI PAN : AAJPA 2819 A VS. ACIT, CC-1, NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY -- NONE -- RE VENUE BY SHRI PRAKASH DUBEY, SR. D.R. DATE OF HEARING: 17 .1 2 .2020 DATE OF PRONOUNCEMENT: 19 . 01 .202 1 ORDER PER ANIL CHATURVEDI, AM: THESE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-25, DELHI PASSED UNDER SECTION 143(3) R.W.S 153A OF THE ACT, 1961 ORDER DATED 20.03.2017 FOR ASSESSMENT YEARS 2007-08, 2008-09 & 2008-09 RESPECTIVELY. ITA NOS. 4002, 4003 & 4004/DEL/2017 A.YS. 2007-08, 2008-09 & 2009-10 PAGE | 2 2. THE RELEVANT FACTS AS CULLED FROM THE MATERIAL ON RECORDS ARE AS UNDER: 3. THE ASSESSEE IS AN INDIVIDUAL WHO IS STATED TO BE ENGAGED IN THE BUSINESS OF SALE OF WHOLESALE MEDICINES AND IN THE ACCOMMODATING ENTRIES. SEARCH AND SEIZURE OPERATION U/S 132(1) OF THE ACT WAS CARRIED OUT AT THE BUSINESS AND RESIDENTIAL PREMISES OF THE ASSESSEE ON 24.05.2012. CONSEQUENTLY, NOTICE U/S 153A OF THE ACT WAS ISSUED ON 19.09.2013 ASKING ASSESSEE TO FURNISH THE RETURN OF INCOME WITHIN 16 DAYS OF THE SERVICE OF NOTICE. ASSESSEE FILED RETURN OF INCOME DECLARING RS.2,15,054/-. THEREAFTER, THE CASE WAS TAKEN UP FOR SCRUTINY AND ASSESSMENT WAS FRAMED U/S 143(3) R.W.S 153A VIDE ORDER DATED 27.03.2015 AND THE TOTAL INCOME WAS DETERMINED AT RS.4,92,11,500/-. 4. WITH RESPECT TO A.Y. 2008-09: ASSESSEE FILED RETURN OF INCOME DECLARING RS. 2,55,511/- AND THE ASSESSMENT WAS FRAMED U/S 153A R.W.S 143(3) VIDE ORDER DATED 30.03.2016 AND THE TOTAL INCOME WAS DETERMINED AT RS.18,75,910/-. 5. WITH RESPECT TO A.Y. 2009-10: ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 5,24,038/- AND THE ASSESSMENT WAS FRAMED U/S 153A R.W.S 143(3) OF THE ACT VIDE ITA NOS. 4002, 4003 & 4004/DEL/2017 A.YS. 2007-08, 2008-09 & 2009-10 PAGE | 3 ORDER DATED 30.03.2016 AND THE TOTAL INCOME WAS DETERMINED AT RS. 22,58,170/-. 6. AGGRIEVED BY THE ORDERS OF THE AO, ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) WHO VIDE SEPARATE ORDER DATED 20.03.2017 DISMISSED THE APPEAL OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF CIT(A), ASSESSEE IS NOW BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: ASSESSMENT YEARS 2007-08 & 2008-09: THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) ERRED IN CONFIRMING THE FOLLOWING ACTIONS OF THE ASSESSING OFFICER: 1. IN PASSING ORDER U/S 143(3) R.W.S. 153A OF THE INCOME-TAX ACT, 1961, AT AN INCOME OF RS.4,92,11,500/- AGAINST THE RETURNED INCOME IN A SUM OF RS.2,15,054/-; 2. IN MAKING FOLLOWING ADDITIONS OF THE RETURNED INCOME: A) R S .4,78,01 ,414/- ON ACCOUNT OF UNEXPLAINED CREDITS; B) RS.11,95,035/-ON ACCOUNT OF COMMISSION INCOME @ 2.5%;. BOTH THE ABOVE ACTIONS BEING ARBITRARY, ERRONEOUS AND UNLAWFUL MUST BE QUASHED WITH DIRECTIONS FOR APPROPRIATE RELIEF. ASSESSMENT YEAR 2009-10 THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) ERRED IN CONFIRMING THE FOLLOWING ACTIONS OF THE ASSESSING OFFICER. 1. WRONGLY ASSUMING JURISDICTION U/S 153A OF THE ACT; ITA NOS. 4002, 4003 & 4004/DEL/2017 A.YS. 2007-08, 2008-09 & 2009-10 PAGE | 4 2. IN PASSING ORDER 153A R.W.S 143(3) OF THE INCOME-TAX ACT, 1961 AT AN INCOME OF RS.22,58,170/- AGAINST THE RETURNED INCOME IN A SUM OF RS.5,24,038/-; 3. IN MAKING FOLLOWING ADDITIONS TO THE RETURNED INCOME; (A) RS. 14,49,132/- ON ACCOUNT OF COMMISSION ESTIMATING THE TOTAL COMMISSION AT RS.20,70,188/- (0.5% ON RS.41,40,37,688/-) AGAINST RS.6,21,056/- RETURNED; (B) RS.2,85,000/-ON ACCOUNT OF SERVICE CHARGES; 4. CHARGING INTEREST U/S 234A, 234B AND 234C OF THE ACT. ALL THE ABOVE ACTIONS BEING ARBITRARY, ERRONEOUS AND UNLAWFUL MUST BE QUASHED WITH DIRECTIONS FOR APPROPRIATE RELIEF. 7. THE CASE FILE REVEALS THAT THE NOTICE OF HEARING SENT TO THE ASSESSEE AT THE ADDRESS STATED BY THE ASSESSEE IN FORM NO.36 WAS RETURNED BACK NOT DELIVERED BY THE POSTAL AUTHORITIES WITH THE REMARK LEFT. ASSESSEE HAS NOT INTIMATED THE CHANGED ADDRESS TO THE TRIBUNAL. ON THE DATE OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT APPLICATION WAS FILED. WE THEREFORE, PROCEED ON THE BASIS OF THE MATERIAL ON RECORD AND AFTER HEARING THE LEARNED DR. 8. BEFORE US, LEARNED DR POINTED THAT THE ASSESSEE WAS ENGAGED IN PROVIDING ACCOMMODATION ENTRIES AND THEY WERE USING VARIOUS FIRMS TO ISSUE BOGUS BILLS TO THE BENEFICIARIES. DURING THE COURSE OF SEARCH PROCEEDINGS A LARGE NUMBER OF INCRIMINATING DOCUMENTS WERE FOUND AND SEIZED AND CONFRONTED WITH THE ASSESSEE. HE POINTED TO THE FACT NOTED BY THE AO IN THE ASSESSMENT ORDER THAT ASSESSEE HAD ACCEPTED IN ITS STATEMENT ITA NOS. 4002, 4003 & 4004/DEL/2017 A.YS. 2007-08, 2008-09 & 2009-10 PAGE | 5 RECORDED U/S 132(4) OF THE IT ACT THAT HE WAS ENGAGED IN PROVIDING ACCOMMODATION ENTRY FROM LAST FOUR YEARS AND TILL DATE HE HAS PROVIDED ENTRY OF APPROXIMATELY RS. 200 CRORES. THE AO ALSO POINTED TO THE FACT THAT DURING THE COURSE OF SEARCH PROCEEDINGS AT THE OFFICE PREMISES OF THE ASSESSEE BILL BOOKS AND CHEQUE BOOKS PERTAINING TO VARIOUS FIRMS NOTED BY THE AO IN PARA 3.3 OF THE ORDER WERE FOUND AND SEIZED. DURING THE COURSE OF SEARCH PROCEEDINGS, THE STATEMENT OF VARIOUS PROPRIETORS/DIRECTORS OF THE VARIOUS ENTITIES CONTROLLED AND MANAGED BY THE ASSESSEE WAS RECORDED BY ADIT IN WHICH THEY HAD ACCEPTED THE FACT OF BOGUS BILLING AND THAT ASSESSEE DID NOT MAINTAIN PROPER RECORD OF BOGUS BILLING DONE OR HE DESTROYS THE DUPLICATE BILLING ISSUED TO VARIOUS BENEFICIARIES. THEREFORE, AO COLLECTED INFORMATION FROM THE BANKS TO ASCERTAIN THE EXACT AMOUNT OF TRANSACTIONS TO VARIOUS CONCERNS MANAGED BY THE ASSESSEE AND FROM THE DETAILS SUBMITTED BY THE BANKS IT WAS OBSERVED THAT DURING THE FINANCIAL YEAR THERE WERE TRANSACTION WORTH RS.4.78 CRORES, (THE DETAILS OF WHICH ARE LISTED IN THE ASSESSMENT ORDER). HE THEREFORE, SUBMITTED THAT CONSIDERING THE TOTALITY OF THOSE FACTS, THE AO HAD RIGHTLY MADE THE ADDITION. LEARNED DR SUBMITTED THAT AGGRIEVED BY THE ORDER OF AO, ASSESSEE HAD CARRIED THE MATTER BEFORE THE CIT(A) WHO WHILE CONFIRMING THE ACTION OF AO HAS GIVEN A FINDING THAT ASSESSEE WAS GIVING FALSE AND SELF SEEKING STATEMENTS TO AVOID THE TAX ON HIS UNACCOUNTED INCOME AND WAS CHANGING HIS VERSION BY MAKING BASELESS CLAIMS. HE THEREFORE SUBMITTED THAT THE ORDER OF CIT(A) BE UPHELD. ITA NOS. 4002, 4003 & 4004/DEL/2017 A.YS. 2007-08, 2008-09 & 2009-10 PAGE | 6 9. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MATERIALS ON RECORD. WE FIND THAT AO IN HIS ORDER HAS NOTED THE FACT OF ASSESSEE PROVIDING ACCOMMODATION ENTRIES AND USING VARIOUS FIRMS TO ISSUE THE BOGUS BILLS TO THE BENEFICIARIES. HE HAS ALSO NOTED THAT BILL BOOKS AND CHEQUE BOOKS OF VARIOUS FIRMS WERE FOUND FROM THE PREMISES OF THE ASSESSEE WHICH POINTED TO THE FACT OF ISSUANCE OF THE BOGUS BILLS TO VARIOUS CONCERNS TO DIFFERENT BENEFICIARIES. BEFORE US, NO MATERIAL HAS BEEN PLACED BY THE ASSESSEE TO CONTROVERT THE FINDING OF LOWER AUTHORITIES. CONSIDERING THE TOTALITY OF THE FACT, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF CIT(A) AND THUS THE GROUNDS OF ASSESSEE IN ALL THE YEARS ARE DISMISSED. 10. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.01.2021 SD/- SD/- (H. S. SIDHU) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE- 19 .01.2021 PY * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI