TaxTMI 
TaxTMI 
2019 (1) TMI 944
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.... 2. The brief facts of the case are that the Assessing Officer observed that information was received from Assistant Director of Income Tax (Investigation), New Delhi that search and seizure/survey operation was carried out upon the entry providers, Shri Pradeep Kumar Jindal, Shri Sajan Kumar Jain, Shri Prem Arora Group and Shri Pawan Arya and his family members. During the course of investigation, it was found that the said persons were entry provider and was providing accommodation entries in the form of bogus share premium, exempt Long Term Capital Gain and advance against property etc from front and non-descript companies and Smt. Reeta Singhal is one of the beneficiary who has received accommodation entry amounting to Rs. 69 lac. 3. ....
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.... Mayank Medilab (P) Ltd. Rs. 25,00,000/- -do- Rs. 19,00,000/- - do- Rs. 69,00,000/- 4.1 He further observed that Rs. 50 lac vide two RTGS of Rs. 25 lac each received on 30.06.2009 was towards sale consideration of 5 lac shares of M/s. Shri Ganga Paper Mills Pvt. Ltd. of face value of Rs. 10/- each, sold at par @ Rs. 10/-. Thus, total sale consideration has been received at Rs. 50 lac. The assessee acquired the shares prior to the Assessment Year 2010-11, i.e., partly in Assessment Year 2006-07 and partly in Assessment Year 2009-10 as under: A.Y. 2006-07 Date of purchase No. of shares purchased Face value per share Per share purchase cost Total purchase cost at par 03.02.2006 92070 10/- 9.86 908000 03.02.2006 ....
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.... the beneficiaries for receipt of Rs. 69 lac from the said group of persons. He observed that the information received was that these parties were involved in providing bogus accopmmodation entry and bogus exempt Long Term Capital Gain in the hands of the assessee. It is not in dispute that there is no case of Long Term Capital Gain. Rs. 50 lac out of Rs. 69 lac was received as sale consideration of 5 lac shares of M/s. Shri Ganga Paper Mill (P) Ltd. which were held since past by the assessee, i.e., partly from Assessment Year 2006-07 and partly from Assessment Year 2009-10. The holding of shares has never been doubted by the Assessing Officer. He observed that in this year 10,27,000 number of shares of the same company and practically at t....
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....similar shares to M/s Mayank Medilab (P) ltd. at the same point of time. He observed that he also did not find any specific cogent evidence on record in support of the contention of the A.O. that this sale transaction of shares for Rs. 50,00,000/- is not the genuine transaction. In respect of Rs. 19,00,000/- received in excess from M/s Mayank Medilab (P) Ltd., which amount was received through RTGS on 13.06.09, he found justification in the explanation of the assessee that under some confusion of sale of more shares, the said Rs. 19,00,000/- were also given by M/s Mayank Medilab (P) Ltd. to the assessee. However, the said amount was returned back immediately by the assessee on the 2nd day i.e. on 15.06.09, therefore, no benefit was received....
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....rded behind the back of the assessee and which have been used adversely. In that case, as per the settled law, in case, the assessee, demands for cross-examination, it is necessary for the A.O. to facilitate for the cross-examination in the absence of which, such alleged adverse material cannot be used. This legal preposition stands laid down by Hon'ble Supreme in the case of M/s. Andaman Timber Industries, 281 CTR 241 (SC). The Hon'ble Supreme Court has held as that "Denial of opportunity to the assessee to cross-examine the witnesses whose statements were made the sole basis of the assessment is a serious flaw rendering the order a nullity inasmuch as it amounted to violation of principles of natural justice". 4.5 Ld. CIT(A) also....
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....umar Jain, Shri Prem Arora and Shri Pawan Arya and his family members who were entry providers. They provided accommodation entries by way of bogus share premium, exempt Long Term Capital Gain and advance against property etc from non-descript companies and the assessee, Smt. Reeta Singhal was one of the beneficiary who has received accommodation entry amounting to Rs. 69 lac. On a show cause notice, it was explained by the assessee that it received Rs. 50 lac towards sale consideration of shares of Shri Ganga Paper Mills Pvt. Ltd. for Assessment Year 2010-11. The said shares were acquired by the assessee in the Assessment Years 2006-07 and 2009-10 and were already appearing in the balance sheet of the assessee. It was also explained that t....