2015 (10) TMI 1495

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....e failed to establish the identity, credit worthiness and genuineness of the transaction despite adequate opportunity." 3. Facts of the case in brief are that the assessee was engaged in the business of finance, share broking and management consultancy services. The assessee filed the return of income on 29.10.2005 declaring an income of Rs. 3,95,03,633/-. Subsequently, the AO received information from Investigation Wing that the assessee had received accommodation entry of Rs. 20,00,000/-. He, therefore, issued notice u/s 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act) on 30.03.2011 after recording the reasons. In response the assessee submitted that the original return furnished u/s 139(1) of the Act may be treated a....

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....page nos. 5 to 8 of the impugned order, for the cost of repetition the same is not reproduced herein. 5. The ld. CIT(A) after considering the submissions of the assessee observed that the AO at page no. 3 of the assessment order mentioned that the assessee in its submission dated 22.11.2011, submitted that M/s D.N. Kansal Securities Pvt. Ltd. was a regular client who executed business in the Stock Market through the assessee and deposited a sum of Rs. 20,00,000/- as margin money through cheque which was repaid to him along with his other payments, the deposit was taken as per the normal trade practice as prescribed by National Stock Exchange of India, the assessee or any Director of the assessee company were not associated with the said cl....

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....d the observations made in the assessment order dated 21.12.2011. It was further submitted that the issue may be sent back to the AO for verification as to whether the amount received by the assessee was on account of share capital or it was related to the business transaction. 7. In his rival submissions the ld. Counsel for the assessee reiterated the submissions made before the ld. CIT(A) and further submitted that all the relevant documents were produced by the assessee before the AO, so there was no need to send the issue back for fresh adjudication. It was further stated that the assessee did not receive any amount on account of share application money from M/s D.N. Kansal Securities Pvt. Ltd. and that the deposit of Rs. 20,00,000/- w....