IN THE INCOME TAX APPELLATE TRIBUNAL ‘F’ BENCH, MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER &

SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER (Assessment Year: 2012-13 DCIT – Circle – 1(3)(1) Vs. Vikasdeep Sales Room No. 540, 5^th Floor Private Limited Aaykar Bhawan, M.K.Road 301, 3rd Floor Mumbai – 400020 Green House Maharashtra. Opp. Old custom House Fort, Mumbai – 400001 Maharashtra.

PAN/GIR No.AACPR2437C (Appellant) .. (Respondent Assessee Represented by Shri Vimal Punmiya Revenue Represented by Smt. Kavita P. Kaushik Date of Conclusion of Hearing 30.04.2025 Date of Pronouncement 19.05.2025 / O R D E R आदेश PER AMIT SHUKLA (JM):

The aforesaid appeal has been filed by the revenue against order dated 07.08.2024 passed by National Faceless Appeal Centre, Delhi (hereinafter in short “ld. CIT(A)”) for the quantum of assessment passed u/s. 143(3)/147 of the Income Tax Act, 1961 (in short “Act”) for the A.Y.2012-13

2. The revenue taken following ground of appeal: -

“(i) "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 1,00,00,000/- made by the Assessing Officer u/s 68 of the IT. Act, without appreciating the statement of Mr. Praveen Agarwal, Kolkata based entry provider has admitted in his statement that he used to provide accommodation entries to the beneficiaries by rotating the funds through intermediary companies and earned commission for the same ?"

(ii) This case falls under the exception clause 3.1(h) of circular no. 5/2024 dated 15.03.2024 and hence monetary limit is not applicable although the Tax Effect involved is Rs. 32,44,500/-“

3. Brief facts of the case are that, assessee company has filed its return of income on 28.09.2012 declaring total income of Rs. 24,32,710/-. Later on, the case was reopened on the basis of information received from DDIT (Inv.) Kolkata that assessee has taken loan from three parties for sum aggregating to Rs. 1,00,00,000/- which was beneficiary of accommodation entry. Ld. AO has incorporated report of investigation and issued show- cause notice to the assessee. In response, assessee had submitted that these are all genuine parties and assessee has not taken any accommodation entries and had furnished the details of all the parties in the following manner:-

Sl.No. Particulars (i) Makesworth Projects & Developers Pvt. Ltd.

- Copy of ledger confirmation for FY 2011-12. - Copy of relevant portion of bank statements - Copy of ITR for AY 2012-13.

- Copy of Audited Financial Statements for FY 2011-12 (ii) Mangalmayee Hirise Pvt. Ltd.

- Copy of relevant portion of bank statements. - Copy of ledger confirmation for FY 2011-12.

- Copy of ITR for AY 2012-13.

- Copy of Audited Financial Statements for FY 2011-12

4. Ld. AO without examining these details or creditworthiness has simply relied upon the report of the investigation wing. The relevant observations of the ld. AO reproduced as under: -

“7.2 In its submission dated 20.12.2019, the assessee furnished the copy of Company Master Data of the above companies. In this regard, it is submitted that the Company Master Data does not proves the genuineness of the unsecured loan transactions obtained by the assessee.

7.4 Further, in its submission, the assessee also furnished the copy of income tax return, copy of financial statements, bank statement and confirmation of the above entities. In this regard, it is submitted that on perusal of the Return of Income of A.Y 2012-13 of above companies, it is seen that the above companies have offered meager income for tax.

The details of income of the above companies are tabulated below-

7.5 On perusal of the financial statement of the above companies, it is seen that these compaines are not involved in any genuine business activities. These companies are being used for routing accounted funds. In the balance sheet of all these companies, it is seen that there are huge share premium / loans and advances and these share premium / loans and advances have been f