TaxTMI 
TaxTMI 
TaxTMI 
2023 (1) TMI 1276
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....ommissioner 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 appreciating the submission / documentary evidence provided to pr....
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....nt 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 of respective companies on protective basis. However, these credits are hereby added i....
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....ed 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 Wing of the Revenue Department and assessment proceedings carried out by the Assessing Officer it i....
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....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 showing you statement of Shri Nilesh Parmar, your employee, recorded on oath u/s 131 of the Income Tax Act, 1961 during enquiry at 343, 4th Floor, Scindia House, Ballard Pier, Mumbai on 02.10.2013. Please go through it....
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....j 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 Upadhyaya and others. To look after the tax matters, employed Avijit Ranka and Sushil Jain to look after banking transactions whereas Shri Dinesh Choudhary was a dummy director in various concerns operated by him. Assessee Shri Panka jain is also a namesake director in various companies. There are 52 concerns, which are operated by the assessees out of which assessee, Shri Pravin Kumar Jain is a director in 13 of them and the remaining concerns are shown in ....
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....rs 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 Statement of the Appellant 28.0 The factual position narrated above had been duly corroborated by the confessional statement of the Appellant recorded during the course of the search operation. The relevant extracts of the statement of the Appellant recorded u/s 13.2(4) of the Act, on 01/10/2013 is reproduced, as under:- 'Q.66 Please give, the list of the complete gamut of activities carried out by you in association with your family members and other close associates, Ans. Sir I am basically in the business of g....