Pr. Commissioner Of Income Tax, Jaipur-2, Jaipur v. M/S Skyways Industrial Estate Company (P) Ltd., F

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 82/2020 Pr. Commissioner Of Income Tax, Jaipur-2, Jaipur. ----Appellant Versus M/s Skyways Industrial Estate Company (P) Ltd., F-42, Shri NathTower, Central Spine, Vidhyadhar Nagar, Jaipur. ----Respondent For Appellant(s) : Mr. Nikhil Simlote on behalf ofMr. R.B. Mathur (Senior Advocate)For Respondent(s): HON'BLE THE CHIEF JUSTICE MR. AKIL KURESHI HON'BLE MR. JUSTICE SUDESH BANSAL 14/02/2022 Judgment This appeal is filed by the revenue to challenge the judgmentof the Income Tax Appellate Tribunal. Following question ispresented for our consideration:- (i)Whether on the facts and circumstances of the caseand in law the ITAT was correct in dismissing appeal ofthe department on the issue of the addition ofRs.3,98,00,000/- made u/s 68 of the IT Act, 1961without appreciating the fact that the assessee hasintroduced its unaccounted cash amounting toRs.3,98,00,000/- in the form of share capital throughthe racket of entry provider operating in Kolkata,information of which was provided by the InvestigationWing, Kolkata.” The documents on record would suggest that for theassessment year 2012-13 the assessing officer had made addition of a sum of Rs.3.98 crores in the hands of the assesseein terms of Section 68 of the Income Tax Act, 1961 (‘the Act’ forshort). According to the assessing officer this related to bogus accommodation entries by way of share application money. Theassessee carried the matter in appeal. The CIT (Appeals) allowedthe appeal and deleted the additions, upon which the revenuepreferred further appeal before the Tribunal. Tribunal byimpugned judgment dismissed the revenue’s appeal makingfollowing observations:- “2.4 We have considered the rival submissions as well asthe relevant materials available on record. The AO hasproceeded to make the addition u/s 68 of the Act inrespect of share application money received ITO, Ward-4(2), Jaipur vs M/s. Skyways Industrial Estate CompanyPvt. Ltd., Jaipur by the assessee from M/s. AbhishekAdvisory Pvt. Ltd. by referring to the search and surveyaction carried out by the DGIT (Inv.) Kolkata, in para 3.1as under:- ''3(1). A search and survey action was carried outin the case of Shri Anand Sharma, Kolkata (entryprovider) and his Group by the DGIT(Inv.), Kolkataon 02-07-2013 when various incriminatingdocuments were seized and impounded. The searchaction resulted into collection of evidences andother findings which conclusively proved that ShriAnand Sharma through a web of concerns run andoperated by him, is engaged in providingaccommodation entries of various nature like bogusunsecured loans, bogus share application andbogus sales etc.'' It is clear that the AO has proceeded on the basis of thestatement of Shri Anand Sharma recorded byInvestigation Wing, Kolkata during search and surveyaction carried out on 02-07-2013. There is no disputethat in his statement recorded by the Investigation Wing,Kolkata, Shri Anand Sharma has admitted that he isengaged in providing the accommodation entries inrespect of share application money, unsecure loans etc.However, in the entire statement Shri Anand Sharma hasnot stated that M/s. Abhishek Advisory Pvt. Ltd. is one ofthe concerns / companies controlled or managed by himin providing such accommodation entries. It can thus be seen that CIT (Appeals) and Tribunal haveconcurrently found no evidence of introduction of assessee’s ownmoney through bogus share application entries. The primereliance of the revenue on the statement made by one Shri It can thus be seen that CIT (Appeals) and Tribunal haveconcurrently found no evidence of introduction of assessee’s ownmoney through bogus share application entries. The primereliance of the revenue on the statement made by one Shri Anand Sharma which was recorded by the Investigation Wing,Kolkata did not incriminate the assessee company. As recordedby the Tribunal the said Shri Anand Sharma has nowhere statedthat M/s Abhishek Advisory Pvt. Ltd. is one of the concernedcompanies controlled or managed by him in providingaccommodation entries. The entire question is thus based on appreciation of theevidence. No question of law arises. Income Tax appeal is dismissed. (SUDESH BANSAL),JBrij Mohan Gandhi/27 (AKIL KURESHI),CJ