TaxTMI 
TaxTMI 
TaxTMI 
2017 (7) TMI 908
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....nd 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 learned AO has ignored the fact that the owners of First Curacao International Bank and the Transworld IC....
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.... 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 return of income for the assessment years 2003-04 to 2006-07 on 16.07.2008 and also furnished the photocopies of the returns of income which were already filed before the AO for t....
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....tment 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 have been taken in a unauthorized manner from some other source. 8. Annexure-A-08: VAT Return acknowledgement form of M/s United Refrigeration & Industries This is a document taken by the Department from Transworld ICT Solutions Pvt. Ltd. Bang....
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....rt 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 the Department from Transworld ICT Solutions Pvt. Ltd. Bangalore. It does not bear any authentication or signatures. The assessee denies having submitted it. 17. Annexure-A-19: Letter of good standing given by Paul Bailey Vice President, Transworld Payment Solutions Limited This is a document ta....
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.... 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 simultaneous debits of approximately the same amounts in favour of foreign companies such as Golden date SL, Korowai Business Invest SI, Siyah Yaxilim Ltd, Amber Telecom which were based in Spain, Turkey and the UAE. However, the appellant both in the course of assessment proceedings and appeal proceedings has denied the existence of the ....
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....d, 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 which bears the credit and debit entries of the firm for the relevant period. 8. VAT return acknowledgement which bears the signature of Shri Ravender Datta. 9. Sales Tax Return is attested by the Notary, New Delhi. 10. Photocopy of PAM is attested by notary, New Delhi. 11. Photocopy of Income Tax Return is attested by the Notary, New Delhi. 12. Form of benefici....
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....ve 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 & Industries with the First Curacao Bank. The letters informing Shri Ravender Datta of the internet banking password for operating of the internet bank account is clear evidence of Shri Ravender Data's involvement. This is so because due to security reasons, the internet banking used id and password are sent by separate letters by Post, ONLY to the authorized user of the account. It is like the PIN Number of a debit card which is sent specially by post to the owner of the debit card. ....
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....om 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 got the account opened in an unauthorized manner for which first Curacao bank and/or M/s Transworld ICT Solutions Pvt. Ltd. have connived with him. This submissions itself demonstrates the stands of the appellant is contradictory and, establishes that, the entire submission are based on hypothetical grounds and divorced from material en record. The filing of criminal complaints do not shift the burden and hence the submissions made are altogether unreliable and not sustainable. The ap....
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....lia, 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. 3812/2010 filed before MM Tis Hazari Court against M/s Transworld ITC Solutions Pvt. Ltd. iii) Company Details: Certificate of Incorporation of U.K Property Services Ltd. iv) Company Details: Certificate of Incorporation of M/s Michael Kelly Haulage Ltd. v) Letter from Michael Kelly Dated 5/10/2012. vi) Company Details: Certificate of Incorporation of Risedale Ltd. vii) Company Details: Certificate of Incorporation of Wiseberry Service Ltd. viii) Letter written to Mr. Ajaib Singh dated 1/10/2012 with courier receipt. i....