2019 (3) TMI 1291

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nted money in their regular books of accounts by routing the same through the accounts of Accommodation entry providers. ... 2. The modus operandi of these entry providers and beneficiaries of their services, was detected to be as under: 2.1 Entries were being broadly taken for two purposes: 1. To plough back unaccounted black money for the purpose of business or for personal needs such as purchase of assets etc., in the form of gifts, share application money, loans etc. 2. To inflate expenses in the trading and profit and loss account so as to reduce the real profits and thereby pay less taxes. 2.2 The assessees who had unaccounted money (called as entry takers or beneficiaries) and wanted to introduce the same in the books of accounts without paying tax, approached another person (called as entry operator) and handed over the cash (plus commission) and had taken cheques/DDs/POs. The cash was being deposited by the entry operator in a bank account either in his own name or in the name of relative/friends or other person hired by him, for the purpose of opening bank account. In most of these bank accounts the introducer was the main entry operator and the cash deposi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has been received that the assessee has taken accommodation entries as noted below:- Bank of the Assessee Branch of the Bank Amount Instrume nt No. Date Credit entry coming from the account of SYNDICATE BANK Punjabi Bagh 400000 51778 15-Jan-03 ETHNIC CREATIONA P. LTD.     500000 245888 18-Jan-03 PARAS FINCAP P. LTD.     500000 245884 18-Jan-03 PARAS FINCAP P. LTD.     500000 245885 18-Jan-03 PARAS FINCAP P. LTD.     500000 245886 18-Jan-03 PARAS FINCAP P. LTD.     500000 246656 29-Jan-03 K.V.F. SECURITIES P. LTD.     500000 246655 29-Jan-03 K.V.F. SECURITIES P. LTD.     200000 245534 06-Feb-03 GANPATI SERVICES LTD     200000 245609 06-Feb-03 GANAPATI CRYSTAL LTD     200000 246113 06-Feb-03 GANAPATI TELECOMS LTD     300000 245633 06-Feb-03 GANAPATI AMUSEMENTS PARKS LTD     650000 304801 06-Feb-03 SANT BHOG FOODS P. LTD.     5....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....00000 246739 15-Feb-03 BHARAT NYLONS LTD. SYNDICATE BANK PUNJABI BAGH 100000 245694 26-Feb-03 GANPATI COTSPIN LIMITED SYNDICATE BANK PUNJABI BAGH 500000   24-Mar-03 K.V.F. SECURITIES P. LTD. SYNDICATE BANK PUNJABI BAGH 500000   24-Mar-03 K.V.F. SECURITIES P. LTD. SYNDICATE BANK PUNJABI BAGH 500000   24-Mar-03 K.V.F. SECURITIES P. LTD. SYNDICATE BANK PUNJABI BAGH 500000   24-Mar-03 K.V.F. SECURITIES P. LTD.   Total 19196148       6. As per the findings of the investigation report, the creditworthiness of the lenders has not been established and these transactions seem to be non genuine. I therefore have reasons to believe that this amount of Rs. 1,91,96,148/- represents income of the assessee chargeable to tax which has escaped assessment for A.Y. 2003-04." 3. The Ld. CIT(A) held that the notice as issued u/s 148 is void ab-initio based on the judgements ITA vs. Dwarka Das Shah 95 ITR 527, Quality Dyeing Works vs. ITO 15 CTR 286, United Electrical Co. Pvt. Ltd. Vs. CIT 258 ITR 317 (Del). 4. Before us the Ld. DR argued t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ch shows that the AO has not even gone through the balance sheet or the return of income before issue of the notice. Further, we also find that the amounts which the assessee paid were also considered to be receipts. The payments made by the assessee cannot be treated as accommodation entries. The AO has misled himself while treating the payments made by the assessee as the receipts which shows absolute non-application of mind by the AO while issuing the notice u/s 148. The AO has added the receipts and payments without verifying the facts on record thus increasing the amount from Rs. 1.21 crores to 1.91 crores. Out of the 44 transactions shown in the reasons, 18 transactions are payments made by the assessee company and not the receipts. 14 transactions are received in the bank account maintained with Punjab National Bank while it is shown as receipt in Syndicate Bank. Out of the total receipts of 1,91,96,148 a sum of Rs. 66,148 is the opening balance of 01.04.2002. Thus, it can be gauzed that the AO has issued the notice in a casual manner without application of mind. Under the circumstances the reliance of the Ld. DR in the case of Sohail Financial Ltd. ITA no. 4867/Del/2011 is ....