2014 (12) TMI 840

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....rayed for quashing of the reasons to believe dated 12.12.2005 on the basis of which action under Section 158-BC read with Section 158-BD of the Act has been initiated. Since all the writ petitions involve the same issue, for facility, the facts of Writ Petition (Tax) No.80 of 2006, Gyanendra Kumar Jain vs. Assistant Commissioner of Income Tax and another, are being taken into consideration. The petitioner contends that he and his minor children filed declaration under the Voluntary Disclosure of Income Scheme (hereinafter referred to as "VDIS") with regard to silver coins, silver utensils, gold sovereign and cash in his individual capacity and paid various sums of money as tax. The petitioner as well as his minor children also sold silver ....

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....nducted in the case of Sri Manoj Kumar Agarwal and his associate concern M/s Bishan Chand Mukesh Kumar, Delhi, it was found from the seized material and the inquiries done from the bank accounts of M/s Bishan Chand Mukesh Kumar that the said concern had not done any real business and had only provided bogus accommodation entries for purchase of jewellery on commission basis and that one such entry relating to the transaction by the petitioner for a sum of Rs. 21,07,861/- was found when in fact no jewellery was sold by the petitioner and, consequently, the amount of Rs. 21,07,861/- constitute the undisclosed income of the petitioner for the assessment year 1998-99 for which action under Section 158-BC read with Section 158-BD of the Act has ....

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....oner. It was contended that no satisfaction was recorded by the assessing officer to initiate proceedings against the petitioner. In the light of these assertions, the Court has heard Sri Rakesh Ranjan Agarwal, the learned Senior Counsel assisted by Sri Suyash Agarwal and Sri Shambhu Chopra and Sri Govind Krishna for the respondent. The learned senior counsel submitted that a search and seizure operation under Section 132 was only carried out at the business and residential premises of M/s Manoj Agarwal Bishan Chand Agarwal and M/s Bamco Jewellers Private Ltd. and that no search was carried out in the firm of M/s Bishan Chand Mukesh Kumar. It was also contended that based on the assessment order passed under Section 158-BD against M/s Bis....

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....ommodation for purchase of jewellery on commission basis. One such entry related to the transaction conducted by the petitioner by receiving an amount of Rs. 21,07,861/- from the firm M/s Bishan Chand Manoj Kumar towards the sale consideration of jewellery. According to the department, this amount constituted undisclosed income of the petitioner as the firm M/s Bishan Chand Mukesh Kumar was not doing any real business and was only providing bogus accommodation entries for the purchase of jewellery on commission basis. The fact, that the petitioner did not sell the jewellery to M/s Bishan Chand Manoj Kumar has not been disputed. In paragraphs 7, 8 and 9 of the writ petition, the petitioner has admitted that he and his minor children had sold....