TaxTMI 
TaxTMI 
2016 (8) TMI 1406
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....ightly taken by the AO. b) Holding that addition of Rs. 41,40,000/- has been rightly made by the AO u/s. 68. c) Holding that the amount of Rs. 41,40,000/- is the assessee's own money / fund and liable to be included in the total income and taxed. d) Holding that the assessee has failed to prove the identity, creditworthiness and genuineness of the transactions with the following persons credit in the a/c books. 1. Rashmi Garg 40,000/- 2. Karan Kumar Garg 50,000/- 3. Tejesvie Investment Pvt. Ltd. 7,00,000/- 4. Puri Financial Services Pvt. Ltd. 10,00,000 5. VDM Marketing Pvt. Ltd. 5,00,000/- 6. Dhanuk Securities Pvt. Ltd. 5,00,000/- 7. Dhanuk Commercial Pvt. Ltd. 6,50,....
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.... AO, assessee appealed before the Ld. CIT(A), who vide impugned order dated 1.9.2014 has partly allowed the appeal of the assesseee and affirmed the action of the AO on the legal issue i.e. reopening of the case u/s. 147/148 of the I.T. Act, 1961. 4. Aggrieved with the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. Ld. Counsel of the assessee has filed two Paper Books one containing pages 1 to 199 attaching therewith the assessment and appellate proceedings documents and the second Paper Book is containing pages 1 to 58 having the copies of the various decision of the ITAT and the Hon'ble High Courts and the Written Submission etc. He stated that Ld. CIT(A) has erred in confirming the action of the AO....
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....d the copies of the aforesaid decisions before the Tribunal. In view of the above, he requested that by following the aforesaid precedents the reassessment proceedings of the AO may be quashed by accepting the Appeal filed by the Assessee. 6. On the contrary, Ld. DR relied upon the order passed by the authorities below and stated that the AO has properly recorded the for reopening by due application of mind, hence, the appeal of the Assessee may be dismissed. 7. I have heard both the parties and perused the relevant records available with us, especially the orders of the revenue authorities and the case law cited by the assessee's counsel on the issue in dispute. In my view, it is very much necessary to reproduce the reasons recorded ....
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....pany controlled by Sh. Tarun Goyal as per details hereunder:- Beneficiary Name of entry provider Amount RK Garg Developers P Ltd. Tajasvi Investments P ltd. 7,00,000 In view of the report received from the DITs(Inv.) New Delhi, and in view of the facts narrated above it is clear that the assessee had provided its Own cash to arrange a credit entry from the Company controlled by Sh. Tarun Coya1. The cash provided by the assessee represents its own income from undisclosed Sources. Further, the assessee had paid commission for such arrangement, which in such cases is at 1%. Therefore, the assessee had incurred an expenditure of Rs. 7,OOO/- for such arrangement which is met out of its wwn income from undisclosed sourc....
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..... 10th February 2003, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: "I have also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries." The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken th....