TaxTMI 
TaxTMI 
2020 (2) TMI 1343
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....he ld.CIT(A) to the extent of upholding of reopening of the assessment, is confirmed. On merit, the grievance of the assessee is that the ld.CIT(A) has erred in confirming the addition of Rs. 28,03,000/-. 3. Brief facts of the case are that the assessee has filed its return of income on 21.9.2009 declaring total income at NIL. The AO has observed that an information vide letter dated 4.3.2016 was received from DCIT, Cent.Cir.4(3), Mumbai exhibiting the fact that during the investigation in the case of Satish Saraf group statements of key persons of the group, Shri Vishal Bhubani, Shri Rahul Jhunjhunwala and Shri Satish Saraf were recorded. In these statements, they have admitted that they were engaged directly or indirectly in providing ac....
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....ency Pvt. Ltd. 2.4. The appellant company has claimed commission of Rs. 28,03,000/-paid to M/s. Sunlight Agency Pvt. Ltd. for the sale made to M/s. Sajjan India Limited, Mumbai. The AO in the assessment order has noted that M/s.Sunlight Agency Pvt. Ltd. is a paper company of Shri Rahui Jhunjunwla which has been used to provide entry. The Honourable ITAT, Ahmedabad in the case of Pavankumar M. Sanghvi Vs. ITO, Wd. 3(1 )(2), Baroda [2017] 81 Taxmann.com 308 has observed on such type of transaction as under:- "8. As I proceed to deal with genuineness aspect, it is important to bear in mind the fact that what is genuine and what is not genuine is a matter of perception based on facts of the case visa-vis the ground realities. The facts of t....
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....ch a part of the underbelly of the financial world, as many other evils. Even a layman, much less a Member of this specialized Tribunal, cannot be oblivious of these ground realities." 2.5. It is noticed that M/s. Sunlight Agency Pvt. Ltd. has been engaged in providing accommodation entry and has been used to launder unaccounted money. The above company is shell company and its name have recently been struck off from Registrar of Companies in the cracking down the shell companies by government. Recently, Honourable Mumbai High Court in the case of Sanjay Vimalchand Jain (L/H) Shantidevi Vimalchand Jain Vs. Pr. CIT - 1, Nagpur in the Income Tax Appeal No. 18/2017 dated 10/04/2017, after examining the transaction of Shri Rahul Jhunjunwala c....
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....wance in the case of the assessee. 5. On the other hand, the assessee put reliance upon the judgment Hon'ble Supreme Court in the case of Andaman Timber Industries Vs. Comm. Of Central Excise, Kolkata (2015) 62 taxmann.com 3 (SC) and contended that unless incriminating material put to verification of the assessee, and the statement and the material used against the assessee is put-forth for cross-examination, such material as well as statement cannot be used against the assessee. Hon'ble Supreme Court in this judgment has observed as under: According to us, not allowing the assessee to cross-examine the witnesses by the Adjudicating Authority though the statements of those witnesses were made the basis of the impugned order is a serious f....