TaxTMI 
TaxTMI 
2017 (7) TMI 908
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....as recovered the documents and then gave him an adequate and reasonable opportunity to rebut them. 2.2 The assessment is based on photocopies found from a third party [Transworld ICT Solutions Pvt. Ltd., in Bangalore.] which are neither authenticated nor has found the original documents and such that unauthenticated photocopies are not admissible evidences. 2.3 The documents relied by the authorities below either do not bear the signatures of the assessee or bear forged signatures. 2.4 That the Department has not found /located the said bank but has extracted information about the alleged bank account from the data bank of Transworld ICT Solutions Pvt. Ltd., in Bangalore. 2.5 The Department has not been able to get any data nor able to locate the said First Curacao International Bank. 2.6 The assessment is made on the basis of dumb documents which have no relation to the assessee and no funds from the alleged huge income has flown to it. 2.7 The learned AO has ignored the fact that Authorities outside India have found that the said First Curacao International Bank is involved in cyber crime and VAT frauds. 2.8 The learn....
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.... 7. The interest charged u/s 234A and 234B are wrong. 8. That the above grounds are independent and without prejudice to each other. 9. That the appellant seeks leave to add, amend, alter or abandon any of the above grounds at the time of hearing of the appeal." 4. The facts of the case in brief are that a search and seizure operation u/s 132 of the Income Tax Act, 1961 (hereinafter referred to as the Act) was carried on 24.01.2007 at the registered office of the assessee as well as the residences of its partner. The assessee firm was ostensibly engaged in the business of electrical and electronic products, refrigeration and air conditioning plants. It was found that the assessee was carrying e-trading activities with business entities located in United Kingdom, Spain, Turkey, UAE and other countries. The assessee company was found to be a 100% wholly owned subsidiary of Transworld ICT British Virgin Islands that was a group company of First Curacao International Bermuda. The AO issued the notice u/s 153A of the Act on 05.03.2008 requiring the assessee to file the returns for 6 assessment years starting from assessment year 2001-02. The assessee filed the....
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....ions Pvt. Ltd. Bangalore. It does not bear any authentication or signatures. The assesses denies having submitted it. 5. Annexure-A-05: Sample Form of Certification of Legal Compliance This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. It does not bear any authentication or signatures. The assesses denies having submitted it. 6. Annexure-A-06: Partnership Deed of the Firm. This is a document taken by the Deapartment from Transworld ICT Solutions Pvt. Ltd. Bangalore. This is a copy of the partnership deed of the assessee but the assessee denies having submitted it to Transworld ICT Solutions Pvt. Ltd. Bangalore and /or First Curacao Bank. It may have been taken in a unauthorized manner from some other source. 7. Annexure-A-07: Copy of Bank Statement (Account Number - 20172) of M/s United Refrigeration & Industries in Bank of India Paharganj. This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. This is a copy of the Bank statement of the assessee but the assessee denies having submitted it to Transworld ICT Solutions Pvt. Ltd. Bangslore and /or First Curacao Bank. It may hav....
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....not bear any authentication or signatures. The assessee denies having operated an e-mail with such a name. No such e-mail or email address were found from the computer found at the premises of the appellant which was seized by the department. 14. Annexure- A-14: Copy of passport and PAN copy of Mr. Ravender Datta attested on 9.11.2005 This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore, These are copies of passport etc but the assessee denies having submitted it to Transworld ICT Solutions Pvt. Ltd. Bangalore and/or First Curacao Bank. It-may have been taken in a unauthorized manner from some other source 15. Annexure-A-16: Letter of trust and reliability issued by U.K. Properties (Services), Ltd., 89, Whitehorn Road, Yiewlsey, West Drayton Middlesex, UB78LA This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. It does not bear any authentication or signatures. The assessee denies having submitted it. 16. Annexure-A-17: Letter of trust and reliability issued by U.K. Frozen Food, 20th Floor Wembley point, 1 Harrow Road, Wembley, Middlesex, HA96DE This is a document taken by th....
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.... the appellant and, M/s Transworld ICT Solutions Pvt. Ltd. In the instant case, the Assessing Officer had made the addition of Rs. 15,41,40,768/- by holding that appellant firm has income for e-trading activities. The basis adopted by the learned Assessing Officer to make the addition is that, there is evidence found in the course of search of M/s Transworld ICT Solutions Pvt. Ltd. and, the appellant that it was having a bank account with the First Curacao bank an internet bank registered in the Netherland Antilles. In the said internet account, it was seen that during the period 5.1.2006 to 7.07.2006 that total value of credit entries appearing during the said period in the account in British Pounds 959120658. The total debit entries appearing in the account are British Pounds 959112966 which includes wire transfer to the tune of British Pounds 411456746. It was further seen that Money was being credited into the account of United Refrigeration, India from companies such as M/s Ultimate Security Agency Ltd., M/s Worldwide U.K. Import and Export Ltd., the Satellite House Ltd., Globalex Ltd. which were all based in the United Kingdom. Against these credits there were almost simultan....
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.... of evidence found as a result of search is not tenable. At this juncture, it is appropriate to again list out the evidence which clearly demonstrate appellant had a bank account and income therefrom is the income of the appellant: 1. Photocopy of Bank Statements of M/s United Refrigeration and Industries in First Curacao Bank Limited, show both credit and debit entries to the tune $1.2 billion with from the period between 5.1.2006 and 7.7.2006. 2. Corporate Banking Account Application Form which bears the signature of Sh. Ravender Datta. 3. Company History Questionnaire which bears the details relating to the business activities of the firm. 4. Form regarding expected Wire Transfer activity which bears the name of the important countries under both the heads namely incoming wire transfer and outgoing wire transfer. 5. Sample Form of Certification of Legal Compliance is an undertaking signed by Sh. Ravender Datta stating that the firm shall comply with the laws of United Kingdom and India. 6. Partnership Deed of the Firm is the copy of the partnership deed signed by all the three partners. 7. Photocopy of Bank Statement....
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.... 23. Loan Agreement between Mr.: Ajaib Singh owner of Wiseberry Services Limited, UK and Sh. Ravender Datta owner of M/s United Refrigeration and Industries, India which is a corresponding wire transfer entry in the bank account of M/s United Refrigeration and Industries in FICB on 27th March 2006 for the above amount." 5.2 All what the appellant has placed on record is an affidavit and copy of the handwriting expert. These documents do not rebut the substantive evidence gathered by the revenue both from the premises of the appellant and the premises of M/s Transworld ICT Solutions Pvt. Ltd. In fact, the learned officer has rightly highlighted that denial of Shri Ravender Datta cannot be accepted in light of seizure of letter dated 30.12.2005 from the First Curacao International Bank addressed to Ravender Datta from the residence of Shri Datta during the course of search informing him about the acceptance of application for the opening of the account of United Refrigeration & Industries with the Bank. The letters give the special test key numbers and the internet banking password for the operation of the internet banking account of United Refrigeration & Industrie....
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.... one of the partner of the appellant firm recorded on 24.01.2007 supports the conclusion the appellant firm had a bank account which was involved in e-trading activities. The judgments relied upon are totally inapplicable as the papers found from the residence of the assessee are no sheaf of papers but documents having independent evidentiary value by themselves taken from an authenticated source. The fact which reinforces the above finding is the recovery of test key and password from the residence of the authorized representative of the firm Sh. Ravender Datta. Moreover, the loan agreement which was found from the registered office of the assessee is backed by a wire transfer entry in the hank account of the assessee in First Curacao International Bank N.V. Infact, few of the documents do not bear signature of all the partners is of no consideration as it is not a requirement of law that all partners must sign all the documents including loan agreement. On the contrary, element of partnership is an extension of principle of agency. It appears that, the appellant firm has attempted to shift the burden on one of the partners namely Shri Ajay Lamba when it submits that he may have g....
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....application dated 14.06.2014 under Rule 29 of the ITAT Rules, 1963 stating therein as under: "Sub- Request for Admission of Additional Evidence under Rule 29 of ITAT Rules 1963 With reference to the above, the assessee most humbly prays as under- 1. The assessment in the abovementioned case was completed at an income of Rs. 15,41,86,913/- against returned NIL income u/s 153A r.w.s 143(3) of the Income Tax Act 1961 by the Astt. Commissioner of Income Tax, Central Circle - 7, New Delhi. 2. Inter alia, addition was made in the hands of the assessee, to the tune of Rs. 15,41,40,768/-by treating undisclosed investment U/s 69. The basis of the bank account alleged in the name of the assessee firm in First Curacao Bank, NV. 3. The appellant could not the following documents as evidences because the same were not in its possession. This document has been obtained after persistent follow ups and request by the assessee with the help of his brother Sh. Rajesh Dutta, who is a British National. The list of documents is as follows: i) Letter relating to First Curacoa International Bank N.V. dated 24 January, 2006. ii) Criminal Complaint No. ....