TaxTMI 
TaxTMI 
2015 (12) TMI 382
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.... 68 of the I. T. Act amounting to Rs. 25,10,000/- on account of unexplained cash credit." 2. Briefly stated, the facts of the case are: that on the basis of information received form Investigation Wing of the Department that the assessee was in the business of bogus /accommodation entry detailed as under: S.No. Value of entry taken (Rs.) Date on which entry taken Name of the account holder of entry provider Bank from which entry received Account NO. of the entry provider 1 40,40,000 04.08.2003 Exclusive Garments Ratnakar Bagh, Karol Bagh, New Delhi 403 the case of the assessee was reopened u/s 147 of the Act and subsequently, notice u/s 148 was issued to the assessee on 28.03.2011. Consequ....
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.... report along with the return of income. The assessee company has not allotted any shares to M/s Exclusive Garments and payments were received on account of regular business transactions wrt sales and purchases. As the amounts received were through account payee cheques against business transactions and duly recorded in the books accounts has not escaped assessment in the hands of the assessee." 4. However, the Assessing Officer has not agreed with the explanation furnished by the assessee and observed that from the detailed report relating to the accommodation entries provided by DIT( Investigation) and from the survey conducted on Mukesh Gupta Group of cases, it was found that accommodation entries were also given through the disguised....
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.... cheques for Rs. 5,05,000/- each received by the assessee from Exclusive Garments are in respect of sales made to Exclusive Garments and this is not the amount received on account of share capital or share application money; that the purchase of shares in question have already been shown by the assessee in the balance sheet for the preceding year; that A.O. has not given findings that it was a bogus transaction in the hands of assessee nor pointed out that shares were bogus purchase by the assessee and relied upon the judgements cited as ITO Vs Jatin Investment Pvt. Ltd. I.T.A. No. 4325 and 4326/Del.2009 and in the case of CIT vs Vishal Holding & Capital (P) Ltd. (2011) 200 Taxman 186 (Del.). 8. We have heard Ld. Authorized Representativ....
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....e sale of shares in cash u/s 40A(3) of the Act. v) that when assessee has shown an amount of Rs. 25,10,000/- as sale proceeds of shares as income, there is no ground for making the same as addition in the income which would amount to double addition. vi) that the books of account maintained by assessee have never been disputed by the A.O. nor he has held that the purchase of shares was bogus transaction or the shares sold by the assessee were bogus one. vii) In I.T.O. Vs Jatin Investment Pvt. Ltd. (supra), it is held that when the assessee purchased the shares in earlier year which were shown as investment in the books of account and reflected in the balance sheet then the assessee sold certain investments and accounted for the pro....