BINDAL AGENCIES PVT LTD.,CHENNAI vs. ITO, CORPORATE WARD-1(2), CHENNAI
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRIMANOJ KUMAR AGGARWAL & SHRI MANOMOHAN DAS
आदेश / O R D E R PER MANOMOHAN DAS, JM: This appeal by the assessee is directed against the order of the
learned Commissioner of Income-Tax, National Faceless Appeal Centre.
Delhi [CIT(A)] dated 16-08-2023 in respect of the Assessment framed by
the learned Assessing Officer [AO] for the Assessment Year [AY] 2012-13.
The brief facts of the case are that the assessee company filed its
return of income for the Assessment Year 2012-13 on 07-09-2012
admitting a total income of Rs. 19,26,630/- and the same was selected
for scrutiny and assessment was completed under section 143(3) on 02-
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02-2015 raising a demand of Rs. 58,860/-. Subsequently, the case was
reopened under section 148 after obtaining necessary approval and notice
u/s 148 dated 01-02-2017 and other statutory notices were issued and
served upon the assessee. The assessee, in compliance to such statutory
notices submitted a copy of the return of income on 27-05-2017. Actually,
a search and seizure operation u/s 132 of the Act was carried out in the
case of Mr. VipulVidur Bhatt and other entities related to him. During the
search action a statement of Mr. VipulVidur Bhatt was recorded u/s
132(4) of the Act wherein, Mr. VipulVidur Bhatt accepted that he is an
entry operator and all the searched entities / companies are bogus
entities / companies which are used by him for providing various bogus
accommodation entries to the various beneficiaries for commission.
During that search and seizure action, the entire books of accounts,
income tax related documents, company law matter related documents
etc. of bogus entities / companies were found at undisclosed premises in
Mumbai. The PAN cards of bogus entities which are managed and
controlled by Shri VipulVidur Bhatt were also seized by the Department.
On perusal of the ledger accounts of the bogus entities / companies, it is
seen that the assessee, Bindal Agencies Pvt. Ltd. has taken the following
bogus entries.
Sl. Name of the Name of the PAN FY Debit Credit No. bogus entity assessee / beneficiary 1. M/s M/s Bindal AACCB3892N 2011-12 10,00,000 0 Santoshima Agencies P Trade Links Ltd. Limited
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However, the assessee vide his reply denied that he has taken any bogus
accommodation entries from anybody during the financial year 2011-12.
The ld. AO after consideration of the reply of the assessee observed that
the assessee has not explained properly the genuineness of the
transaction and financial capability and credit worthiness of the lender.
The ld. AO observed that the assessee simply stated that there was no
transaction with M/s Santoshima Lease Fin Investment Ltd during the FY
2011-12 and did not give answer about the transaction with M/s
SantoshimaTradelinks Limited. The ld. AO from the copy of the ledger
account in the books of M/s SantoshimaTradelinks Limited observed that
the assessee received RS. 5,00,000/- during the year under consideration
and therefore, rejected the claim of the assesse and accordingly, vide his
order dated 27-12-2017 added that amount of Rs. 5,00,000/- to the total
income of the assessee.
Being aggrieved, the assessee filed 1st appeal before the ld. CIT(A)
unsuccessfully.
Being aggrieved, the assessee filed the present appeal before the
Tribunal.
Heard the representatives of both the parties and perused the
materials on record.
The Ld. AR submitted that the assessee did not raise any loan from
M/s SantoshimaTradelinks Limited and accordingly prayed for sending the
ITA No.1172 /Chny/2023 :: 4 ::
matter to the ld. AO for fresh examination. The Ld. DR however,
submitted that the assessee did not give any reply regarding the
transaction with M/s SantoshimaTradelinks Limited before the ld. AO.
We carefully considered the submissions of the parties and perused
the materials submitted by the parties. The Ld. AR submitted copies of
the balance sheets as on 31-03-2011 and 31-03-2012 the perusal of
which we found force on the submission of the assessee that he did not
raise any loan from M/s Santoshima Trade Links Limited. Therefore, it is
our considered opinion that the matter should be re-examined by the ld.
AO. Accordingly, we set aside the order of the ld. CIT(A) dated 16-08-
2023 as well as order of the ld. AO dated 27-12-2017 to the extent
relating to the addition of Rs.5,00,000/- and direct the ld. AO to re-
examine the issue of the said addition of Rs. 5,00,000/-. At the same
time, we direct the assessee to substantiate his claims before the ld. AO.
In the result, the appeal of the assessee is allowed for statistical
purposes only.
Order pronounced on the 27TH day of February, 2024, in Chennai.
Sd/- Sd/- (मनोज कुमार अ�वाल) (मनोमोहनदास) (MANOMOHAN DAS) (MANOJ KUMAR AGGARWAL) �याियक सद�य/JUDICIAL MEMBER लेखा सद�य/ACCOUNTANT MEMBER चे�ई/Chennai, �दनांक/Dated: 27th February, 2024. TLN
ITA No.1172 /Chny/2023 :: 5 :: आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 4. आयकरआयु�/CIT 2. ��यथ�/Respondent 5. िवभागीय�ितिनिध/DR 3. आयकरआयु� (अपील)/CIT(A) 6. गाड�फाईल/GF
