PASCHIM FINANCE & CHIT FUND PRIVATE LIMITED,NEW DELHI V. ITO,WARD-19(3), NEW DELHI

ITA 1073/DEL/2023

AI Insights

The case involves Paschim Finance & Chit Fund P. Ltd., the appellant, contesting the order of the Commissioner of Income Tax (Appeals) regarding the assessment year 2012-13. The primary issues in the appeal were the reopening of the assessment and the addition of Rs.27,40,950 as commission income from providing accommodation entries. The Assessing Officer had estimated this commission at 2% of the accommodation entries provided. The Tribunal noted the repeated non-appearance of the appellant's representatives and decided the case based on the Department's submissions and the existing record.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298830 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 12-09-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 13-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHIVANI BANSAL
• Keywords: Accommodation entries
• Section: 148

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.1073/िदʟी/2023 (िन.व. 2012-13) ITA No.1073/DEL/2023 (A.Y.2012-13) Paschim Finance & Chit Fund P. Ltd., 209, Bhanot Plaza-II, 3 DB Gupta Road, Paharganj, New Delhi 110055 PAN: AACCP-7246-E ...... अपीलाथᱮ/Appellant बनाम Vs. Income Tax Officer, Ward-19(3) CR Building, New Delhi 110002 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Ms. Shivani Bansal , Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 12/09/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 28/11/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 15.02.2023, for assessment year 2012-13. 2. In ground no. 1 to 5 of appeal, the assessee has assailed reopening of assessment. In ground no. 6 of appeal, the assessee has assailed addition of Rs.27,40,950/- made by Assessing Officer (AO) on account of commission earned by the assessee in providing accommodation entry. The AO estimated commission at the rate of 2% of the accommodation entries provided to the beneficiary. 2 ITA No. 1073/DEL/2023 (A.Y.2012-13) 3. A perusal of file reveals that appeal has been adjourned 11 times either due to non appearance of any representative of the assessee/appellant or at the request of assessee. Today again no one is present to represent the assessee, nor any request for adjournment has been received from the assessee. It seems that the assessee is not interested in pursuing the appeal. Therefore, this appeal is taken up for adjudication with the assistance of ld. Departmental Representative and on the basis of material already on record. 4. Ms. Shivani Bansal, representing the department submits that information was received from investigation wing of the department that the assessee has received huge cash deposits during the year under consideration. The Assessing Officer after examining entire gamut of transactions came to the conclusion that the assessee is providing accommodation entries against commission. The assessee is part of Surendra Kumar Jain and Virendra Jain of ‘Jain Hawala Scam’. The assessee has earned commission by providing accommodation entry to the tune of Rs.13,70,47,500/-. Thus, the AO estimated commission at the rate of 2% of entries provided to its beneficiaries by rotation of funds. In appeal by the assessee before CIT(A), no one appeared on behalf of the assessee despite repeated notices, hence, the CIT(A) upheld the addition. A factual report was called from the AO which was placed on record on 23.11.2023. 5. Submissions made by ld. DR heard and orders of the authorities below examined. The assessee in ground no. 1 to 5 of appeal has assailed reopening of assessment and has also challenged validity of notice issued u/s. 148 of the Act. However, no material is furnished by the assessee in support of the grounds 3 ITA No. 1073/DEL/2023 (A.Y.2012-13) raised. Hence, ground no. 1 to 5 of appeal are dismissed being devoid of any merit. 6. In ground no. 6 of appeal, the assessee has assailed addition of Rs.27,40,950/- on merits. The assessee in appeal before the CIT(A), failed to respond to any of the notices. Before the Tribunal as well, the assessee/AR of the assessee except for seeking repeated adjournments has not made submissions either in writing or otherwise. In absence of any controverting material, I find no reason to interfere with the findings of the authorities below. Hence, ground no. 6 of appeal is dismissed. 7. In ground no. 8 of appeal, the assessee has assailed charging of interest u/s. 234A, 234B, 234C and 234D of the Act. Charging of interest under aforesaid sections is mandatory and consequential; hence, in absence of any controverting material ground no. 8 of appeal is also dismissed. 8. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on Thursday the 28th day of November, 2024. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 28/11/2024 NV/- 4 ITA No. 1073/DEL/2023 (A.Y.2012-13) ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "