ROUND SQURE EXIM PVT. LTD. ,DELHI V. ACIT, CENTRAL CIRCLE 26, DELHI

CO 199/DEL/2022

AI Insights

The case involves an appeal by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals), New Delhi, which had deleted certain additions made by the Assessing Officer in the hands of Round Squre Exim Pvt. Ltd. for the Assessment Year 2017-18. The additions were related to the alleged receipt of accommodation entries. The Tribunal referred to its earlier decisions in the Assessee's own cases for the Assessment Years 2012-13 to 2015-16, where similar issues were adjudicated. The Tribunal found that the substantive additions had been made in the hands of the real beneficiaries of the accommodation entries, and therefore, no further additions were warranted in the hands of the Assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712038 (ITAT-DELHI)
• Appeal Type: Cross Objection
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Other Referred Cases: DCIT Vs. M/s. Shivji Garments Pvt. Ltd., ACIT Vs. M/s. Zed Enterprises (P) Ltd.
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KUMAR YADAV
• Assessee Lawyers: SHILPI JAIN
• Keywords: Accommodation entries

Judgement Text

" 1ITA No. 194/Del/2022& C.O No. 199/Del/2022 ACIT Vs. Round Squre Exim IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [ DELHI BENCH : “A” NEW DELHI] BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER I.T.A. No. 194/DEL/2022 (A.Y 2017-18) ACIT Central Circle-26 Room No. 323, ARA Centre Jhandewalan Extension, Delhi Vs Round Squre Exim Pvt. ltd. B-163, Block-B, Amar Colony, Lajpat Nagar, Delhi PAN: AAECR5167Q Appellant Respondent C. No. No. 199/DEL/2022 (in ITA No. 194/Del/2022) Round Squre Exim Pvt. ltd. B-163, Block-B, Amar Colony, Lajpat Nagar, Delhi PAN: AAECR5167Q Vs ACIT Central Circle-26 Room No. 323, ARA Centre Jhandewalan Extension, Delhi Appellant Respondent Assessee by Sh. Shilpi Jain, CA Revenue by Sh. Sanjeev Kumar Yadav, CIT DR Date of Hearing 16/07/2025 Date of Pronouncement 23/07/2025 ORDER PER YOGESH KUMAR, U.S. JM: The captioned appeal is filed by the Revenue and the Cross Objection is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals(‘Ld. CIT(A)’ for short), New Delhi dated 23/11/2021 for the Assessment Year 2017-18. Printed from counselvise.com 2ITA No. 194/Del/2022& C.O No. 199/Del/2022 ACIT Vs. Round Squre Exim 2. The Ld. Counsel for the Assessee submitted that the issue is squarely covered by the order of the Tribunal in Assessee’s own case for Assessment Year 2012-13 to 2015-16 in ITA No. 8834 to 8837/Del/2019 Assessee’s own case, accordingly, sought for dismissal of the Appeal of the Revenue. 3. Per contra, the Ld. Departmental Representative relying on the assessment order, sought for allowing the present Appeal. 4. We have heard both the parties and perused the material available on record. The Co-ordinate Bench of the Tribunal in Assessee’s own case for Assessment Year 2012-13 to 2015-16 while deciding the identical issue in ITA No. 8834/Del/2019 and connected matters held as under:- “9. We have heard the rival submissions, perused the material available on record, impugned order and case law cited before us. In the present case, while deleting the addition, the Ld. CIT(A) has observed as under:- “6.4. From the above transactions, it is noticed that the appellant company has received funds from various concerns and transferred the same to the above mentioned companies/concerns immediately thereafter, and accordingly, appellant company is not beneficiary company. The above arrangement of funds is nothing but part of modus operandi of the accommodation entry provider to introduce the unaccounted funds of the beneficiaries in their respective bank accounts. Further, the AO also in the assessment order has observed that the appellant company was a conduit company operated by Sh. Naresh Jain and Anand Jain to provide accommodation entries to various beneficiaries and said beneficiaries have already been identified. Accordingly, when the beneficiaries are identified, the addition in such cases can Printed from counselvise.com 3ITA No. 194/Del/2022& C.O No. 199/Del/2022 ACIT Vs. Round Squre Exim at best be that of commission earned on such accommodation entries. The commission income earned on providing accommodation entries through the appellant company have already been assessed by the AO in the hands of Sh. Anand Jain and Naresh Jain which has been confirmed by me in their respective appeals. Therefore, I am of the view that no further addition can be made in the hands of appellant company under the facts as discussed above. Under these circumstances, the protective addition made by the AO of Rs. 14,18,37,75/- is directed to be deleted. 7. In ground nos. 12, the appellant has challenged the addition made by the AO of Rs.3,54,594/-. The AO in the assessment order has made an addition on account of commission income of Rs. 3,54,594/- on account of commission income @0.25% of the total credits of Rs.14,18,37,753/- received from various parties. 7.1. In this regard, it has already been held in para 6.4. of this order that the addition on account of commission income has already been made in the hands of Anand Kumar Jain and Naresh Kumar Jain as these two persons were operating appellant company as conduit for providing accommodation entries. Having held that these two persons were operating these companies including the appellant, l am of the view that no further addition on account of commission is warranted in the hands of appellant company under the facts as discussed above. Therefore, the addition made on account of commission of Rs.3,54,594/- is directed to be deleted.” 10. As could be seen from the aforesaid observations of the Ld. CIT(A), since, the real beneficiaries, who have availed the accommodation entries were identified, the substantive additions have been made at their hands. That being the case, protective additions made at the hands of the assessee cannot survive 11. While considering identical issue on similar facts, the companies, allegedly managed and controlled by Jain Brothers, the Coordinate Bench in the cases of DCIT Vs. M/s. Shivji Garments Pvt. Ltd. (supra) and ACIT Vs. M/s. Zed Enterprises (P) Ltd. (supra) has upheld the decision of the Ld. CIT(A) in deleting the addition. 12. In the present cases, the facts are being identical, we do not find any infirmity in the decision of Ld. CIT(A), in deleting the additions. Accordingly, revenue grounds are dismissed. Printed from counselvise.com 4ITA No. 194/Del/2022& C.O No. 199/Del/2022 ACIT Vs. Round Squre Exim 13. Since, the Department’s appeals are dismissed, the assessee has not pressed the Cross objections, hence, the COs stands rejected as infructuous. 14. The facts and issues raised in the Revenue’s appeal and Cross Objections of the assessee in the Assessment Years 2013- 14, 2014-15, and 2015-16 are exactly identical to the facts and issues raised in the Assessment Year 2012-13. Therefore, our finding given in respect of Assessment year 2012-13 shall be applicable to the Assessment years 2013-14, 2014-15 and 2015- 16 in pari material, decided accordingly. 15. In the result, four appeals of the Revenue and four Cross Objections of the assessee are dismissed.” 5. By respectfully following the order of the Tribunal for Assessment Year 2012-13 to 2015-16 in ITA No. 8834 to 8837/Del/2019, we dismiss the Appeal of the Revenue, consequently also dismiss the Cross Objection filed by the Assessee for having become in-fructuous. Order pronounced in the open court on 23rd July , 2025 Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 23.07.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com 5ITA No. 194/Del/2022& C.O No. 199/Del/2022 ACIT Vs. Round Squre Exim Printed from counselvise.com "