TaxTMI 
TaxTMI 
2023 (1) TMI 1276
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....ommon order dated 28/09/2018 passed by Ld.Commissioner of Income-tax (Appeals)-47, Mumbai [hereinafter referred to as 'Ld.CIT(A)] by raising identically worded grounds except the difference in amount of addition (for A.Y. 2008-09 to 2014-15 (for the sake of brevity Grounds of ITA No.7191/Mum/2018 for A.Y. 2008-09 are taken) on the grounds inter alia that - "The appellant has preferred an appeal against the order dated 28.09.2018 passed by Id. CIT (A) u/s. 250 of The Income Tax Act, in pursuance of appeal filed against assessment order dated 17.03.2016 passed u/s. 153A r.w.s. 143 (3) of the Income Tax Act, Following are the grounds of appeal without prejudice to one another - I. The learned Commissioner of income Tax (Appeal) has erred in not allowing the assessee's appeal for disapproving the learned Assessing officer's view of rejecting the Books of Accounts and Income of appellant by invoking the provision of section 145 (3) of the income tax Act, 1961. II. The learned Commissioner of Income Tax (Appeal) has again erred in upholding the action of learned assessing officer of treating all the business activities as accommodation entry without app....
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.... have derived income from business, capital gain and other sources. During the assessment proceedings, Assessing Officer noticed that assessees were directors, partners and proprietors of various group concerns, 15 in number, which are actually dummy or namesake. During investigation it has come out that various group concerns are run and operated by the assessees. Confessional statement of assessee, Shri Pravin Kumar Jain was recorded which was duly corroborated with facts collected during investigation. It has also come on record that assessee has provided accommodation entries for long term capital gain, share application, accommodation entries for bogus sales and purchases and accommodation entries facilitated from bogus long term capital gain scheme in penny stock. Assessing Officer on the basis of assessment proceedings reached the conclusion that it is proved on record that credit appearing in the hands of the dummy companies being run by the assessee are nothing but accommodation entry in the guise of unsecured loans which are run, operated and controlled by the assessees for conducting the business of providing accommodation entries. These loans have been added in the case....
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....rder passed by Ld.CIT(A). 7. We have heard the Ld.DR for the Revenue, perused the order passed by learned lower authorities and material available on record in the light of law applicable thereto. 7. Undisputedly, Assessing Officer has rejected the books of account filed by the assessees under section 145 of the Act, which are under challenge before the Tribunal. It is also not in dispute that Assessing Officer has estimated the addition @0.20% p.m. for loans and advances on account of the commission income, @2% for share application money, 20 ps. for purchase and sales (trading activity) and 0.25% of other transactions alleged to have been executed through other brokers. It is also not in dispute that the Assessing Officer reached the conclusion that entire unsecured loan transactions amounting to Rs.47.39 crores entered by different entities / companies with Spanco group as unexplained income of the assessee. It is also not in dispute that the Assessing Officer also disallowed deduction claimed under section 80C amounting to Rs.1,00,000/-. 8. We have also perused the impugned order passed by Ld.CIT(A). From the search and seizure operation conducted by the Investigation ....
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....h Manish Jain, Sh Abhinandan Jain, Sh Rishabh Babel,Sh Sanath, Sh Nilesh, Sh Sushil Jain, Sh Jitendra Tater, Sh Virendra Abani and Sh Pankaj Jain are directors in some of my companies. Q.114. I am showing you statement of Sh. Pankaj Kumar Jain, Director in Sumukh Commercials Pvt Ltd, recorded on oath u/s 132(4) of the Income Tax Act, 1961 during search proceedings u/s 132 at C/512, Ostwal Onyx, JwaL pek, Bhayander, Thane on 03.10.2013. Please go through it. Ans. Sir, I have gone through the statement of Sh. Pankaj Kumar Jain recorded on oath u/s 132(4) on 03.10.2013. Q.115 In his statement, Sh. Pankaj Jain has clearly stated that he is just a namesake director in various companies run by you. He has not performed any function in those in the capacity of director and his function is restricted to RTGS and cash transfers. Further he has pointed out that there is no genuine business Activity being carried out in those companies. Please comment on the same. Ans. Sir, I fully agree with the statement of Sh. Pankaj Jain. He was namesake director and all companies in which Pankaj is Director are controlled by me. Q.116 I am ....
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....td 6. Duke Business Pvt Ltd 7. Flak Trading Co Pvt Ltd 8. Jahanavi Gems Pvt Ltd 9. Javde India Impex Ltd 10. Josh Trading Pvt Ltd 11. Kush Hindustan Entertainment Ltd 12. Pragati Gems Pvt Ltd 13. Spurti Computech Pvt Ltd 14. Tanika Commodities Pvt Ltd 15. Trangular Infocom Pvt Ltd 16. Vanguard Jewels Ltd 17. Viraj Mercantile Pvt Ltd 18. Yaswh V Jewels Ltd 19. Anan Diamonds 20. Arihant Corporation 21. Ganesh Trading Co 22. Jasoda Exports 23. Kailash International 24. KLI Diamond 25. Kunal Gems 26. Kush International 27. Mahalxmi Corporation 28. Mahalxmi Trading Co 29. Minal Corporation 30. Mohit International 31. Natasha Enterprises 32. Paras Gems 33. Pratik Impex 34. R S Enterprises 35. Raj Export 36. Ryan International 37. Seven Star Gems 38. Suraj Gems 39. Taj Impex 11. From the aforesaid statement of the assessee recorded during search and seizure operation duly corroborated have come on record that the assessee has employed Shri Manish Sanat Upa....
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....activity. > These persons receive meagre salary, which is mostly paid in cash. > Living Standard-of these dummy directors, partners and proprietors is quite ordinary and is not commensurate with the financial activity carried on by the concern in which they are directors / partners / proprietors. > All of them file individual returns, which reflect meagre total income. > PAN and other identification proof of the dummy or name sake directors, partners and proprietors have been found at one place. > Blank cheque books signed by the dummy directors/ partners/ proprietors have been found at one of the premises. This dearly indicates that these persons don't have any control over the bank accounts of the dummy concerns. > Blank old stamp papers in the names of the concerns in which these employees, brokers and cash handlers have been shown as directors, partners and proprietors were also found. The books of accounts of these concerns in which these employees, brokers and cash handlers have been shown as directors, partners and proprietors were maintained in the same register and on one computer. Confessional Sta....