TaxTMI 
TaxTMI 
2019 (1) TMI 944
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....as 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. The AR of the assessee has filed written submission and stated that Smt. Reeta Singhal has sold share of Shri Ganga Paper Mills Pvt. Ltd. for a consideration of Rs. 50 lac which is received through RTGS and balance amount of Rs. 19 lac was returned back. It was submitted that shares of Shri Ganga Paper Mills Pvt. ltd. were acquired by the assessee during the Assessment Year 2009-10 and these shares were sold to M/s. Mayank Medilab Pvt. Ltd. in the Assessment Year 2010-11. There was no profit and gains in this transaction. The Assessing Officer observed that submission of the assessee was examined and found devoid of merit and not convincing. During the course of hearing, the AR of the assessee was specifically asked why M/s. Mayank Medilab Pvt. Ltd. has paid Rs. 19 lac in excess of sale consideration without receipt of shares of this value. He....
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....ilab Total 1527000 15270000 4.3 He further observed that the Assessing Officer has not doubted genuineness of sale of 10,27,000 shares to parties other than M/s. Mayank Medilab (P) Ltd. and added only sale consideration of Rs. 50 lac received on sale of 5 lac shares to M/s. Mayank Medilab (P) Ltd. This was done only on the ground that information was received from Investigation Wing that Shri Pradeep Kumar Jindal, Shri Prem Arora Group, Shri Sajjan Kumar Jain and Shri Pawan Arya and his family members were found to have indulged in the activity of providing accommodation entry and assessee was one of 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 Asse....
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....06.09, therefore, no benefit was received on account of receipt of said sum of Rs. 19,00,000/-. He further observed that under these facts when the money stood returned on the 2nd day, totally unutilized and without taking any benefit of any nature out of the said receipt, such receipts cannot be understood or taken as receipt of accommodation in nature. In case of any accommodation entry, the recipients will surely enjoy the benefits of the said receipt, which is not a case here. Regarding the observation of report from the Inv. Wing, he observed that he found substance in the contention of the assessee that when specifically requested, the cross examination of the person was to be required, since the statements of such persons have been relied upon and acted upon by the A.O., specially when these statements were recorded at the back of the assessee and that too, not by the A.O. but by the Inv. Wing. Ld. CIT(A) has observed that he has seen that in the assessment order, the A.O. has specifically rejected the request of cross-examination of the assessee on the ground that it was only a secondary and subordinate material, therefore, the cross-examination was not necessary. Ld. CIT(A....
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....ndisputed facts are that the Assessing Officer received information from Investigation Wing, New Delhi that search and seizure operation was carried out on Shri Pradeep Kumar Jindal, Shri Sajan Kumar 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 the said purchaser M/s. Mayank Medilab Pvt. Ltd. under a mistake that it was acquiring further shares from the assessee paid Rs. 19 lac on 13.06.2009 and the same was returned back by the assessee on 15.06.2005 and that assessee did not derive benefit of R....