Income Tax Appellate Tribunal - AhmedabadThe Acit, Circle-1(1)(1), Vadoadara vs Darshanam Life Space Pvt. Ltd, Vadodara on 8 March, 2021आयकर अपील य अ धकरण, अहमदाबाद  यायपीठ 'बी', अहमदाबाद ।\n             IN THE INCOME TAX APPELLATE TRIBUNAL\n                     " B " BENCH, AHMEDABAD\n\n     BEFORE SHRI MAHAVIR PRASAD, JUDICIAL MEMBER &\n        SHRI AMARJIT SINGH, ACCOUNTANT MEMBER1.    आयकर अपील सं./I.T.A.         No.2040/Ahd/2018 - By Revenue2.   आयकर अपील          सं./I.T.A. No.2061/Ahd/2018 - By Assessee\n                  (  नधा रण     वष  / Assessment Year : 2012-13)1. The Asst.CIT                      बनाम/   1. Darshanam Life Space\n     Circfle-1(1)(1)                    Vs.       Pvt.Ltd., 3 r d Floor\n     Vadodara - 390 007                           Platinum Complex\n                                                  Opp. Ganga Jamna Hospital\n                                                  Subhanpur,Vadodra-3900232. Darshanam Life                            2. The Dy.CIT\n     Space Pvt.Ltd.                               Circle-1(1)(1), Vadodara\n     Vadodara-390023\n   थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AADCD 2030 M\n     (अपीलाथ  /Appellants)              ..         (  यथ  / Respondents)\n     Revenue by        :                Shri Vinod Tanwani, CIT-DR\n     Assessee by :                      Shri Mukund Bakshi AR\n\n     सन\n      ु वाई क  तार ख       / Date of Hearing             11/02/2021\n     घोषणा क  तार ख /Date     of Pronouncement           08/03/2021\n\n                                     आदे श / O R D E R\n\nPER SHRI AMARJIT SINGH - AM:The captioned appeals have been filed at the instance of the\nRevenue and Assessee respectively against the appellate order of the\nCommissioner of Income Tax(Appeals)-1, Ahmedabad [CIT(A) in short]\ndated 30/07/2018 arising in the assessment order passed under s.143(3)\nr.w.s.147 of theIncome Tax Act, 1961(hereinafter referred to as "the\nAct") dated 29/12/2016 relevant to Assessment Year (AY) 2012-13.ITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                                 ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1322.     Since the issues are inter-connected, both the appeals were heard\ntogether and are being disposed of by this consolidated order for the sake\nof convenience.3.   First, we take up the Revenue's appeal, i.e. ITA No.2040/Ahd/2018\nfor AY 2012-13.        The Revenue has raised the following grounds of\nappeal:-1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A)\n         erred in deleting the addition of Rs.3,86,04,360/- which was made on\n         account of estimation of accommodation entries at Rs.25,73,62,400/- and\n         thereafter restricting the addition to 15% of such estimate amounting to\n         Rs.3,86,04,360/-, without appreciating the findings that the assessee has\n         accepted to have make payment of Rs.6,43,406/- to Mr. Rami and Mr.Rami\n         has also accepted payment for accommodation entries from various parties.2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A)\n         failed to appreciate that the decision of the AO is based on binding decision\n         of Hon'ble Gujarat High Court in the case of M/s.Vijay Protien Ltd. vs. CIT\n         58 Taxmann.com 344 [2015] as well as the decisions of Hon'ble\n         jurisdictional ITAT in the cases ofPavankumar M.Sanghvi v. ITO Ward-5(1), Baroda and in the case ofACIT, Circle-4, Surat vs. Sunday Exports\n         Ltd.3.   The facts in brief are that the assessee-company has filed its return of\nincome on 30/09/2012 declaring total income at Rs.3,96,91,870/-.\nAssessmentu/s.143(3)of the Act was finalized on 24/03/2015 and total\nincome was determined on Rs.55,61,49,800/- which was reduced to\nRs.4,54,35,860/- after giving appeal effect. Subsequently, the Assessing\nOfficer has received information from ACIT, Central Circle-2(4),\nAhmedabad who has assessed the case of Shri Jaymesh Rami, Director of\nAayurshi Infraprojects Pvt.Ltd. u/s.153A regarding providing ofITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                            ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-133accommodation entries.     The Affidavit of Shri Jayesh Rami was also\nreceived by the Assessing Officer, wherein he had admitted that he was\nengaged in the business of entry providing on charging of commission at\nRs.0.25 to 0.35 per 100 rupees. The Assessing Officer observed that the\nassessee has paid a sum of Rs.6,43,406/- to Shri Jaymesh Rami during the\nyear under consideration. Therefore, the Assessing Officer has reopened\nthe case after recording reasonu/s.148of the Act on 18/06/2015. A noticeu/s.143(2)of the Act was issued on 13/06/2006. During the course of\nassessment proceedings, the Assessing Officer has issued show-cause\nnotice dated 26/09/2016 to the assessee briefly stating that Shri Jaymesh\nRami has received commission of Rs.6,43,406/- from the assessee-\ncompany. It was further pointed out that the assessee had shown this\namount in the name of M/s.Rami Brothers in whose bank account this\namount was credited, while PAN of Shri Jaymesh Rami was mentioned\nalong with the name of M/s.Rami Brothers. In the show-cause notice, the\nAssessing Officer has computed an amount of Rs.25,73,62,400/-\n(6,43,406*100/0.25) being inflated expenditure and asked the assessee by\nthe same should not be added to its total income. In response to the show-\ncause notice, the assessee has explained vide letter dated 04/10/2016 that it\nhas not entered into any transaction with M/s.Aayurshi Infraprojects\nPvt.Ltd as per its books of accounts which were produced for verification.\nIt was also submitted that assessee-company has actually availed the\nservices of site leveling/soil filling from M/s.Rami Brothers during the\nFinancial Year 2010-11 and also enclosed the copy of invoice.              The\nassessee has also explained that for availing these services, it has madeITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                           ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-134payment of Rs.6,43,406/- during the year under consideration. It is further\nexplained that assessee-company was not aware of any business of\nproviding accommodation entries by Shri Rami.4.1. The assessee has also requested the Assessing Officer to furnish the\n     following particulars.1) The details of entries alleged to have been provided.2) The copy of statement recorded by the authorities concerning the\n        assessee.3) Copy of Affidavit.4) Any other communication made in this regard.However, vide letter dated 14/10/2016, the Assessing Officer has\nsupplied only the following documents.1) The copy of statement of Shri.Jaymesh R.Rami2) The copy of Affidavit of Shri Jaymesh R.Rami.However, the assessee was allowed to make inspection of the record\nreceived from ACIT, Central Circle-2(4), Ahmedabad. Thereafter, the\nassessee has made submission of 28/10/2016 stating that it has not entered\nany transaction of obtaining accommodation entries as alleged on the basis\nof the statement of Shri Jaymesh Rami furnished to the assessee vide letter\ndated 14/10/2016. It was also explained that in the Affidavit Shri Jaymesh\nRami has stated of providing accommodation entries to several parties but\nin the list of parties name of the assessee was not reflected. Even in theITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                           ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-135Affidavit also, nothing was mentioned about transaction with the assessee-\ncompany. However, the assessee-company had transaction amounting to\nRs.6,43,406/- with M/s.Rami Brothers in the FY 2010-11 and that\ntransaction had nothing to do with Shri Jaymesh Rami. However, the\nAssessing Officer has not agreed with the explanation and objection made\nby the assessee-company. The Assessing Officer stated that assessee has\naccepted the fact that it has paid an amount of Rs.6,43,406/- to Shri\nJaymesh Rami and Shri Rami has accepted that he has received some\namounts from various parties for providing of accommodation entries and\ndetails provided by Shri Jaymesh Rami included the details in respect of\nthe assessee. Therefore, Assessing Officer was of the view that Shri\nJaymesh Rami has provided accommodation entries to the assessee.\nConsequently, the Assessing Officer has held that 15% of the total amount\nof accommodation entries computed by the Assessing Officer to be\ndisallowed. Therefore, Assessing Officer has computed at 15% of the total\naccommodation     entries   of   Rs.25,73,62,400/-   to   the     amount    of\nRs.3,86,04,360/- and added to the total income of the assessee.5.   Aggrieved assessee has filed appeal before the Ld.CIT(A) against the\norder of the Assessing Officer in making addition of Rs.3,86,04,360/-.6.      The Ld.CIT(A) has restricted the addition to the extent of\nRs.7,91,406/- only and the relevant portion of the order of the Ld.CIT(A)\nis reproduced hereunder:ITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                               ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-136"4.2. Ground No.1 and 2 originally raised in the appeal memo are pertaining\nto estimation of value of accommodation entries at Rs.25,73,62,400/- and then\n15% disallowance thereof resulting into addition of Rs.3,86,04,360/-. As is\nevident from the statement of Shri Jaymeshbhai R Rami recorded by the ACIT,\nCentral Circle-2(4), Ahmedabad on 20.03.2015 during the course of the\nassessment proceedings in the case of M/s. Aayurshi Infraprojects Pvt. Ltd., he\nwas director in 5 companies for monthly income of Rs.5,000/- to Rs.6,000/- as\nmentioned below:Sr       Name of the Company                            Address\nNo.\n1        M/s. Krutarth Projects Pvt.Ltd.                35-252, Vandan\n                                                        Apartment\n                                                        Ankur Road, Naranpura,\n                                                        Ahmedabad\n2        M/s.Alton Infrastructure Pvt.Ltd.              2515, Sadumata ni Pole,\n                                                        Shahpur, Ahmedabad\n                                                        380 001\n3        M/s.Disharth Infraprojects Pvt.Ltd.            2646-3, Gamala ni Pole,\n                                                        Nr. Hakim ni Khadki,\n                                                        Shahpur\n                                                        Ahmedabad 380 001\n4        M/s Aayurshi Infraprojects Pvt.Ltd.            35-252, Vandan\n                                                        Apartment, Ankur road,\n                                                        Naranpura, Ahmedabad\n5        M/s.Kalgi Marketing Pvt.Ltd.                   D-5, Kiran Nagar,\n                                                        Govt.Quarters,\n                                                        O/s. Shahpur,\n                                                        Ahmedabad 380 001Further, Shri Jaymesh R Rami in response to question No.9, had given the list\nof entities to whom accommodation entries were provided which are as under:I.     M/s. Kesar Buildcon Pvt. Ltd.\n            II.     M/s. Infinity Comptrade Pvt. Ltd.\n            III.   M/s. Entire Ceramics\n            IV.    M/s. Sampati Securities\n            V.     M/s. Prime Commodities\n            VI.    Jolly Anureet Kaur\n            VII.   M/s. Profile Biochemical Pvt. Ltd.ITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                             ACIT vs. Darshanam Life Space P.Ltd.\n                                                               Asst.Year: 2012-137VIII.M/s. B.B. Tradelink Pvt. Ltd.\n            IX. M/s. Rishabh Probuild Pvt. Ltd.\n            X. M/s. Sanskruti Megastructure Pvt. Ltd.       :He has also submitted affidavit dated 11.03.2015, contents of which are\nreproduced as under:"I the undersigned JAYMESH R RAMI, Hindu, adult, present\n      communication address at 35/252, Vandan Apartment Nr. Ankur Cross\n      Road, Haranpura, Ahmedabad-380013 do hereby solemnly affirm on\n      oath that I was involved in the business as well as engaged in providing\n      accommodative entries during FY 2010-11, FY 2011-12 and FY 2012-\n      13 relevant to AY 2011-12, AY2012-13 and AY 2013-14. Separate\n      submission with regard to papers/documents/accounts was given on 09-\n      03-2015 along with the submission.In this business of entry provider, rate of commission is ranging from\n      0.25 paisa to 0.35 paisa per 100 rupees and out of that minimum\n      expenses incurred is about 0.05 paisa to 0.10 paisa and net income\n      received from this business was about 0.30 paisa.Further it is stated that I was a party in the document block No.222 TP.\n      Scheme no.4 final plot no. 40 at Village Kudasan, Gandhinagar, which\n      was executed on 22-07-2010 vide registration deed no. 13990 dated 22-\n      07-2010. As per the document there is mention of receipt of Rs.10 Lacs\n      but in fact it was part of providing accommodative arrangement for this\n      document for which I received on only 10,000/- (Rupees Ten Thousand\n      only). Thus, I am stating on oath which may be considered at the time\n      of working out of my income as entry provider.This affidavit I given to assess me on the principal of real income\n      earned.What ever stated above is to true the best of my knowledge and belief."From the above facts, it is clear that Shri Jaymeshbhai R Rami has not\nmentioned the name" of the appellant anywhere for providing accommodation\nentries. The appellant has provided a list of major purchases to the tune of\nRs.21,62,78,302/- to the AO during the course of the assessment proceedings,ITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                              ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-138but, none of the parties therein was same as mentioned by Shri Jaymeshbhai R\nRami. All the purchases as per this list placed at Pages 22 to 24 of the paper\nbook are from the parties stationed in Vadodara. The AO in his assessment\norder has also not identified or pointed out even a single item of purchase\nmade from the 5 companies through which Shri Jaymesh R Rami claimed to\nhave been providing accommodation entries. In view of the above facts, the Ld.\nAR has objected to the additions made.4.2.1. As regards the payment of Rs.6,43,406/- by the appellant, the appellant\nhas filed a copy of bill issued by M/s. Rami Brothers (Labour Contractors) for\nRs.7,91,406/- being the labour charges for soil filling at site with JCB and\nclaimed that the payment was made by account payee cheque for this work. The\nAO has not established by any cross verification that the bill raised for soil\nfilling at the construction site of the appellant was bogus. Nowhere in the\nstatement or affidavit, Shri Jaymeshbhai R Rami has stated that the amount\nof Rs.6,43,406/- received from the appellant was for commission. Under these\ncircumstances, the action of the AO in extrapolating the amount of\naccommodation entries by considering Rs.6,43,406/- as commission @ 0.25%\nis without any basis and unsustainable in law. At the cost of repetition, it is\nworthwhile to mention here again that the AO could not find even a single\ninstance of purchase from the entities run by Shri Jaymesh R Rami except for\nan entry of Rs.7,91,406/-. The Ld. AR has heavily argued that even a surveyu/s\n133Awas carried out in the case of the appellant on 10.12.2014 and no\nevidence of bogus purchase/accommodation entries was found. On the basis of\nsurvey action, assessmentu/s 143(3)in the year under consideration was\ncompleted on 24.03.2015/27.03.2015. A perusal of the assessment order reveals\nthat there was no iota of evidence regarding accommodation entries and bogus\npurchases.4.2.2. The Ld. AR has also pointed out that the AO had allowed him inspection\nof documents received from ACIT, Central Circle-2(4), Ahmedabad, on\n21.10.2016 and there is no adverse material against the appellant except for an\nentry of Rs.6,43,406/- at sr. No. 39 of the chart containing names of 69\npersons. In order to verify the contentions of the Ld. AR, I have obtained\ncomplete report of ACIT, Central Circle-2(4), Ahmedabad dated 08.06.2015\nwhich was the basis for re-opening and additions made. As a matter of fact, on\nthe basis of entries found credited in the bank accounts of Shri Jaymesh R Rami,\nwith Axis Bank, Dhanlaxmi Bank & Yes Bank, a list of accommodation entries\nhad been prepared.This list contains name and address of parties to whomITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                               ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-139accommodation entries have been provided and name of the appellant is\nappearing only once at Sr.No.39 for Rs.6,43,406/- on 30.07.2011. Further, on\nthe basis of these accommodation entries, the ACIT, central Circle-2(4),\nAhmedabad has completed assessmentu/s 143(3)/153Ain the case of Shri\nJaymeshkumar R Rami for AY 2012-13 & AY 2013-14 vide orders dated\n30.03.2015. In those orders, the summary of accommodation entries has been\nmentioned as under:AY            Credit Entries (Rs.) Debit Entries (Rs.)\n\n             2010-11       27,50,000/-          27,45,000/-\n\n             2011-12       46,77,329/-          46,77,400/-\n\n             2012-13       4,99,89,448/-        4,99,91,893/-\n\n             2013-14       1,38,58,608/-        1,38,70,064/-On the .basis of above, the AO in the case of Mr. Rami has assessed net income\nat 1% of accommodation entries as commission earned and accordingly, made\nadditions of Rs.4,99,919/- in AY 2012-13 (i.e. 1% of Rs.4,99,91,893/-) and "Rs.1,38,701/- in AY 2013-14 (i.e. 1% of Rs.1,38,70,064/-). The AO had\nconsidered the debit entries instead of credit entries because of one being\nhigher of two. Therefore, from the above, it is crystal clear that the AO in the\ncase of entry provider had considered that amount credited in his bank accounts\nas value of accommodation entries including one pertaining to the appellant\nand not as commission. Accordingly, entry of Rs.6,43,406/- pertaining to\nappellant being part of total entries of ₹4,99,89,448/- has to be also treated as\naccommodation entry only instead of commission payment.4.2.3. Undisputedly, the AO has neither made any independent enquiry from the\nsuppliers nor allowed cross examination of the third party though specifically\ndemanded and accordingly, the appellant submitted that the additions based on\nhypothesis, conjectures and suspicion are liable to be deleted. It is also said\nthat addition based on the statement of third party without affording\nopportunity of cross examination are also liable to be deleted. In support of\nthese contentions, the Ld. AR has relied upon various decisions as mentioned in\nthe written submission. In the case of Dhakeshwari Cotton Mills Ltd. (1954) 26ITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                               ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1310ITR 775 (SC), it has been held that though ITO is not fettered by technical rules\nof evidence and pleadings and he is entitled to act on material which may not be\naccepted as evidence on account of law, but in making assessment, he is not\nentitled to make a pure guess and pass assessment order without reference to\nany evidence or any material at all. This decision has been followed in various\ncases and hence still holds good. The ratio laid by the Hon'ble Supreme Court,\nthus favourably supports the case of the appellant. ;4.2.4. In view of the above factual and legal position, thus, it emerges that the\nAO has estimated value of accommodation entries devoid of any documentary\nevidences or material and hence, the same cannot be sustained. Consequently,\nthe addition made on this account by disallowing 15% of such estimated\naccommodation entries again on adhoc basis also deserves to be deleted.\nAccordingly, the addition made by the AO having no legs to stand is directed to\nbe deleted. However, undoubtedly, the appellant has made a payment of\nRs.6,43,406/- in respect of purchase of services of soil filling from Shri Jaymesh\nR Rami amounting to Rs.7,91,406/- which certainly should be treated as\naccommodation entry. Accordingly, the AO is directed to make the disallowance\nof Rs.7,91,406/- only. Thus, appellant succeeds partly in respect of both the\ngrounds of appeal.5. In result, the appeal is partly allowed."7.     During the course of hearing before us, the Ld.DR has supported the\norder of the Assessing Officer. On the other hand, the ld.counsel for the\nassessee has filed paper-book comprising details of document filed before\nthe Assessing Officer and CIT(A). During the course of assessment\nproceedings and appellate proceedings, the ld.counsel for the assessee has\ncontended that as per the copy of invoice of Rs.7,91,406/- placed in the\npaper-book pertaining to labour charges of Rs.7,91,406/- issued in favour\nof M/s.Rami Brothers as labour contractors, it is clear that assessee has not\navailed any accommodation entry from Shri Jaymesh Rami.                       The\nld.counsel for the assessee has also referred the other documents placed inITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                           ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1311the paper-book, i.e. confirmation of account and details of purchases made\nduring the year by the assessee-company. The ld.counsel for the assessee\nhas also supported the order of the Ld.CIT(A).8.    Heard both the sides and perused the material available on record.\nDuring the year under consideration, the Assessing Officer has reopened\nthe assessment in the case of the assessee on the basis of information\nreceived from ACIT, Central Cir-2(4), Ahmedabad who assessed the case\nof Shri Jaymesh Rami, Director of Aayurshi Infraprojects Pvt.Ltd.\nu/s.153A of the Actin providing of accommodation entries.                The\nAssessing Officer, during the course of assessment proceedings, has\npointed out that assessee has paid a sum of Rs.6,43,406/- to M/s.Rami\nBrothers while PAN of Shri Jaymesh Rami was mentioned along with the\nname of M/s.Rami Brothers.        The Assessing Officer has received\ninformation that Shri Jaymesh Rami, Director of Aayurshi Infraprojects\nPvt.Ltd. was engaged in providing of accommodation entries.               The\nAssessing Officer has also received Affidavit of Shri Jaymesh Rami,\nwherein he admitted that he was engaged in the business of entry\nproviding on charging of commission @ 0.25 to 0.35 per 100 rupees. On\nthe basis of these information, the Assessing Officer has treated the\namount of Rs.6,43,406/- as commission paid by the assessee-company to\nShri Jaymesh Rami for obtaining accommodation entries. The Assessing\nOfficer has treated the commission rate @ 0.25 per 100 rupees and worked\nout accommodation entries to the amount of Rs.25,73,62,400/-\n(6,43,406*100/0.25).   The assessee-company has submitted that it hasITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                                  ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1312never had any business with the companies named by Shri Rami As in his\nstatement Shri Jaymesh Rami has stated that he was Director of the five\ncompanies which were engaged in the business of providing entry and the\nassessee has not any transaction with those companies. The list of those\nfive companies discussed in the order of the CIT(A) are as under:-"Sr      Name of the Company                              Address\nNo.\n1        M/s. Krutarth Projects Pvt.Ltd.                  35-252, Vandan Apartment\n                                                          Ankur Road, Naranpura,\n                                                          Ahmedabad\n2        M/s.Alton Infrastructure Pvt.Ltd.                2515, Sadumata ni Pole,\n                                                          Shahpur, Ahmedabad 3800013        M/s.Disharth Infraprojects Pvt.Ltd.              2646-3, Gamala ni Pole,\n                                                          Nr. Hakim ni Khadki,\n                                                          Shahpur\n                                                          Ahmedabad 380 001\n4        M/s Aayurshi Infraprojects Pvt.Ltd.              35-252, Vandan\n                                                          Apartment, Ankur road,\n                                                          Naranpura, Ahmedabad\n5        M/s.Kalgi Marketing Pvt.Ltd.                     D-5, Kiran Nagar,\n                                                          Govt.Quarters,\n                                                          O/s. Shahpur, Ahmedabad\n                                                          380 001"8.1. Further, we have noticed in the detailed finding given by the\nLd.CIT(A) that Shri Jaymesh R.Rami had also given the list of entities to\nwhom he has provided accommodation entries and noticed that he has not\nmentioned the name of the assessee-company anywhere for providing\naccommodation entries. During the course of assessment proceedings,\nassessee has also provided the list of parties from whom it has made major\npurchases to the amount of Rs.21,62,78,302/- during the year underITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                            ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1313consideration and none of the party contained in the list which was\nmentioned by Shri Jaymesh Rami as accommodation provided entities.\nIn respect of payment of Rs.6,43,406/-, the assessee has filed a copy of\nbill issued by M/s.Rami Brothers (Labour Contractors) of Rs.7,91,406/-\nbeing the labour charges from soil filling at site and the payment was made\nby "A/c. Payee Cheque" for this work. It is noticed that the ld.CIT(A) has\ncorrectly mentioned in his finding that Assessing Officer has not\nestablished by any cross-verification that the aforesaid bill was bogus.\nThe Assessing Officer has computed the accommodation entries amount at\nthe rate of 0.25% on hypothetical manner without any basis and relevant\nevidences. In his finding, the Ld.CIT(A) has held that ACIT Central\nCircle-2(4) Ahmedabad in the case of Shri Jaymeshkumar R.Rami has\nassessed net income at 1% of accommodation entries as commission\nearned and made addition of Rs.4,99,919/- (1% of Rs.4,99,91,893). The\nLd.CIT(A) has further held that Assessing Officer in the case of entry\nprovider had considered that amount credited in his bank account as value\nof accommodation entries including one pertaining to the assessee of\nRs.6,43,406/-. The Ld.CIT(A) is also justified in stating that Assessing\nOfficer has neither made any independent enquiry from the suppliers nor\nallowed any cross-examination of the third party though specifically\ndemanded by the assessee-company and made the additions based on\nhypothesis, conjectures and suspicion.8.2. In the light of the above facts and considering the detailed finding of\nthe Ld.CIT(A), we do not find any infirmity in the decision of theITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                           ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1314ld.CIT(A), therefore both the grounds of appeal of the Revenue stand\ndismissed.9.    Now we take up the assessee's appeal in ITA No.2061/Ahd/2012 for\nAY 2012-13.10.   In this appeal, the assessee has listed the solitary ground of appeal\nin disallowing the expenditure of Rs.7,91,406/- stating that the\ndisallowance was erroneous in facts and law as no such expenditure was\nclaimed during the year under consideration.11.   Without reiterating the facts as elaborated while adjudicating the\nappeal of the Revenue, i.e. ITA No.2040/Ahd/2018 for AY 2012-13\n(supra), it is noticed that Ld.CIT(A) has restricted the addition to the\nextent of Rs.7,91,406/- on the basis of invoice placed on record in respect\nof labour charges for soil filling from M/s.Rami Brothers. However, on\nperusal of the bill, it is noticed that this bill was raised on 07/03/2011\npertaining to FY 2010-11 which clearly demonstrates that this expenditure\nwas not claimed during the year under consideration. However, it is\nnoticed that in his finding the Ld.CIT(A) has concluded that AO of the\nCentral Circle-2(4), Ahmedabad has considered the amount credited in the\nbank account of Shri Rami as value of accommodation entries. Since in\nthe case of the assessee the payment of Rs.6,43,406/- was considered as\naccommodation entries and it is noticed that assessee has not reconciled\nthis payment with outstanding amount of Rs.7,91,406/- as per invoice\nraised for labour charges, therefore we restrict the disallowance to theITA No.2040/Ahd/2018 (By Revenue)and ITA No.2061/Ahd/2018 (By Assessee)\n                                                                 ACIT vs. Darshanam Life Space P.Ltd.Asst.Year: 2012-1315extent of Rs.6,43,406/-.                   Thus, this ground of appeal of the assessee is\npartly allowed.12.         In the combined result, appeal of the Revenue is dismissed, whereas\nthe appeal of the assessee is partly allowed.This Order pronounced in Open Court on                                       08 / 03/2021\n\n\n               Sd/-                                                                     Sd/-\n( MAHAVIR PRASAD )                                                        (AMARJIT SINGH )\n JUDICIAL MEMBER                                                       ACCOUNTANT MEMBER\n\nAhmedabad;                Dated           08/ 03 /2021\n\nट .सी.नायर, व.&न.स./T.C. NAIR, Sr. PS\nआदे श क    त!ल"प अ#े"षत/Copy of the Order forwarded to :\n\n1.        अपीलाथ  / The Appellant\n2.          यथ  / The Respondent.\n3.        संबं(धत आयकर आयु*त / Concerned CIT4.        आयकर आयु*त(अपील) / The CIT(A)-1, Ahmedabad5.        -वभागीय  &त&न(ध, आयकर अपील य अ(धकरण, अहमदाबाद / DR, ITAT, Ahmedabad6.        गाड3 फाईल / Guard file.ु ार/ BY ORDER,\n                                                                                             आदे शानस\n\n                      स या-पत  &त //True Copy//\n\n                                                                        उप/सहायक पंजीकार (Dy./Asstt.Registrar)\n                                                               आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad1.  Date of dictation .. 4.3.21 (dictation-pad 27 - pages attached at the end of this appeal-file)2.  Date on which the typed draft is placed before the Dictating Member ...4.3.21/5.3.213.  Other Member...4.  Date on which the approved draft comes to the Sr.P.S./P.S.................5.  Date on which the fair order is placed before the Dictating Member for\n         pronouncement......6. Date on which the fair order comes back to the Sr.P.S./P.S....... 8.3.217. Date on which the file goes to the Bench Clerk..................... 8.3.218. Date on which the file goes to the Head Clerk..........................................9. The date on which the file goes to the Assistant Registrar for signature\n         on the order..........................10. Date of Despatch of the Order..................