TaxTMI 
TaxTMI 
2018 (7) TMI 361
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.... declaring total income at Rs. Nil. The assessment was completed, u/s. 143(3) (ii) r. w. s. 147 of the Act, on 18th March, 2015, determining the income of the assessee at Rs. 50 lakhs. ITA/5973/Mum/2016 2. First effective ground of appeal, raised by the AO, is about deleting the addition made by him u/s. 68 of the Act . During the assessment proceedings, he observed that there were reasons to believe that the assessee had availed of accommodation entries for unsecured loans. He had received informa -tion in that regard from the office of the Director-General of Income Tax (Inv. ). He issued a show cause notice to the assessee asking it as to why an amount of Rs. 50 lakhs, shown as loans, should not be added to its income. The asses....
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....ver accepted that he was providing accommodation entries for unsecured loans, that he had admitted of issuing some paper entries for purchases, that all the entries for purchases were not accommodation entries, that he had not admitted anywhere that accommodation entries for secured loans were given by him, that RS had also not admitted that he was in the business of providing accommo -dation entries for unsecured loans, that the name of the assessee was not figuring anywhere. He further observed that both the lenders were regular income tax assessees, that the loans were received through account payee cheques, that loan confirmation and affidavits from RS and GV were submitted during the assessment proceedings, that the assessee had filed ....
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....opy of the statement of GV was not supplied even to the FAA, that the lenders had nowhere implicated the assessee, that no incriminating evidence was brought on record. He relied upon the cases of Veedhata Tower Pvt. Ltd. (ITA No. 819 of 2015 dated 17/ 04/2018);Alcon Biosciences Pvt. Ltd. (ITA No. 1946/Mum/2016 AY 2010-11 dtd. 28/02/ 2018;Indumati M. Bansal (ITA No. 3842/Mum/2017 AY 2007-08 dtd. 15/11/ 2017);Vikram Muktilal Vora (ITA No. 842/Mum/2017, AY2007-08 dtd. 23/05/2017; Anil Chagganlal Jain (ITA No. 369-70/Mum/2017, AY 2013-14 dtd. 13/04/2017) . 5. We have heard the rival submissions and perused the material before us. We find that the reassessment proceedings were initiated after the AO received certain information from the inve....
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....s willing to produce the lenders before him for cross examination. But, surprisingly he did not ask the assessee to produce them. In these circumstances, we are of the opinion that order of the FAA does not suffer from any factual or legal infirmity. 5.1. We would like to refer to the case of Suresh L. Satyani (supra). In that matter notices under section 133 (6) of the Act were issued to four benami concerns from whom the assessee had obtained bogus bills of purchase, that those parties had given part replies, that the assessee had failed to produce the parties before the AO despite being called upon to prove the genuineness of the transaction. In the case under consideration the assessee had filed all the necessary details like affidav....
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....retion of the Bench. We have gone through the application filed by the assessee for condoning the delay along with the affidavit. After considering the available material, we are of the opinion that delay was because of by a reasonable cause. Hence, we condon the delay. 8. In its CO, the assessee has challenged the validity of reassessment proceedings. Before us, the AR argued that the FAA had erred in upholding the reassessment proceedings, that there was no failure on part of the assessee to disclose true and full facts about the transaction. He relied upon the cases of Arceli Reality Ltd. (ITA No. 6492/Mum/2016, AY 2007-08 dtd. 21/04/2017); Shri Sunil Prakash (ITA No. 6494/Mum/2014, AY 2005-06 dated 08/03/2017; Metro Decorative Pvt....
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....gus loans and advances, the Investigation Wing has exercised due diligence which revealed that the above assessee , is involved in bogus loans and advances from the following party: Name of the Firm PAN Amount involved A2JEWELS AAMFA 7751 J Rs. 25, 00, 000/- Jewel Diam ABUPV 3494 J Rs. 25, 00, 000/- 2. Shri Bhanwarlal Jain have admitted under oath in the statements recorded by the Income Tax Department that they have not carried out actual trading activity and have only issued bogus loans and advances. 3. In view of the above, I have no reason to believe that income exceeding rs. One lakh has escaped assessment for AY 2007-08. " 8. 1. A perusal of the reasons reveal that the AO has....