TaxTMI 
TaxTMI 
2017 (6) TMI 296
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....ed during the year from two parties. 3. We have heard the rival contentions and perused the records. Facts in brief are that during the course of assessment proceedings, AO observed that an information in respect of acceptance of accommodation entry in the form of bogus share application money, speculation profit/loss, short term capital gain loss, commodities profit loss was received from the Directorate of Income-tax (Inv.)-I, Mumbai. Upon receipt of such information and after properly recording the reasons after obtaining due administrative approval, the case was reopened and notice u/s.148 of the Act was issued on 10.01.2012, which was duly served on the assessee. In response to the notice issued u/s.148, the assessee vide its letter....
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....rse of action u/s.132 conducted in the case of M/s. Mahasagar Securities Pvt. Ltd., the assessee was found to have availed entries for bogus share application money during the F.Y.2007-08 in return for cash from the companies floated by Mahasagar Securities Group. In other words, the assessee had received back cheque/cash and bogus contract notes and bills for the transactions that were not at all taken place. It is found that the assessee had not disclosed about the trading in shares during the course of assessment proceedings u/s. 143(3). Further, from the details received from the Addl. DIT (Inv), Unit,- I, Mumbai, it was found that the assessee has admitted to have received money of Rs. 1.02 crores from the below mentioned companies flo....
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....roceedings, in the case of Mr. Kalpesh Babulal Kothari for A.Y. 2002-03, the statement of Shri Mukesh Choksi was recorded by the ITO 24(2)(1), Mumbai on 16.12.2010 in connection with bogus entries. 8. The AO further observed that since it has been proved that the assessee had purchased these engineered gains, it is also inferable that assessee had paid certain fee (or commission or remuneration or whatever be the name) for obtaining these bogus gains. As per information in possession of the Department, a sum of 5% of the gross amount was payable for these services obtained. This is over and above the additions to be made above on account of bogus share application money. Therefore, a sum of 5% of the aforesaid amount of Rs. 1,02,00,000/-....
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....cements as placed n record, wherein capital receipt from both these concerns were found to be genuine. 12. On the other hand, learned DR relied on lower authorities and contended that during the course of search Shri Mukesh Chokshi has categorically admitted that he was involved in providing accommodation entries and both these concerns were own by Shri Mukesh Chokshi and AO has justifiably reopened the assessment and added the bogus share capital in the assessee‟s income. 13. We have considered the rival contentions and carefully gone through the orders of the authorities below. We have deliberated on the judicial pronouncements referred by the lower authorities in their respective orders as well as cited by the learned DR and ....
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....t. The conclusion of the AO that the assessee has accepted the bogus share application money from both the companies is based only on the oral statement of Mukesh M Choksi which does not stand in the eyes of law. As per materials placed on record both the companies namely Alliance Intermediate and M/s Mihir Agencies Pvt Ltd have confirmed the transaction which is also evident from the books of A/c of the assessee company as well as from bank statement and the books of A/c of both the parties. Thus oral statement of Mr Mukesh M Choksi given before the authorities of Investigation wing at the time of search and seizure operation cannot wipe off these documentary evidences. Further when the transactions were conducted though the banking channe....