TaxTMI 
TaxTMI 
2025 (4) TMI 842
X X X X Extracts X X X X
X X X X Extracts X X X X
....st arising from the assessment order dated 26.12.2018 passed u/s 144/147 of the Act, concerning Assessment Year 2011-12. 2. The grounds of appeal raised by the assessee read as under :- 1. "On facts and in the circumstances of the case, the Ld CIT(A) has erred in law in upholding the impugned reassessment proceedings ignoring the fact that the jurisdictional notice u/s 148 was never served upon the appellant in compliance of sec 282A rwr 127 of IT rules 1962 and therefore, such proceedings without service of notice u/s 148 is valid in law and void-ab-initio. 2. On facts and circumstances of the case, the authorities below have erred in upholding the reassessment proceedings ignoring the fact that impugned assessment is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sing Officer ("AO") of the assessee was accordingly, intimated that the assessee is one of the beneficiaries who has taken accommodation entries of an amount of INR 98,20,055/- from the entities of the above searched persons. Based on the information, proceedings u/s 147/148 of the Act was initiated by issuance of notice dated 26.03.2018 u/s 148 of the Act. The assessment was completed ex-parte u/s 144/147 of the Act wherein income was assessed at INR 1,41,50,800/- by making following additions :- * Addition of INR 98,20,000/- u/s 68 of I.T Act on the basis of the reason recorded on reopening of assessment. * Addition of INR 43,30,800/- estimating the business income @8% on the basis of credit submissions in the bank accou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e peculiar facts of the case which have not been correctly appreciated by the Ld AO while passing the impugned order of assessment. The reason recorded clearly shows that the searched persons have been found in the business of providing accommodation entries to various beneficiaries through cheques/DD/RTGS/NEFT In lieu of cash through various dummy and paper companies controlled by them. Kindly refer to para B(1) of reason recorded (PB 17) and in sub-para 3(vii) there is mention of seizure of documents and electronic data where material pertaining to shell companies were found and those companies were used as conduit to provide accommodation entries to various beneficiaries and those companies actually belonging to Jain Brothers and their a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her entities is reproduced hereunder: Chart of inflow of funds in the bank account and corresponding out flow to other entities Inflow of funds Outflow of funds Names of parties with amounts Addition made u/ s 68 98,20,000/- Purushotam Invtofin Ltd. A R Overseas Links P.Ltd. NRS Investment Consultants P.Ltd. Expert Projects Consultants P.Ltd. Energic Advisory P.Ltd. PD Fabrication P.Ltd. 4,60,50,000/- 50,00,000/- 38,00,000/- 25,00,000/- 31,00,000/- 35,00,000/- Additions on estimated profit on the other credits 5,41,35,000/- Total 6,39,55,000/ Total 6,39,50,000/ Amounts received from Director Shri Rajan Mehra not considered for addition 25,045/- Amounts spent for other ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the assessment of appellant in succeeding assessment year i.e. AY 2012-13. Copy of assessment order is placed in paper book at page 3-4." 7. The Ld. Counsel for the assessee thus, submitted that it is fact on record that the assessee is merely a pass through entity and engaged in assistance of providing accommodation entries. The only option available with the Department is to estimate income of such transactions by taking nominal income by way of facilitation commission which in Assessment Year 2012-13 has been taken on 0.3% by the AO himself. Therefore, the Department, at best, can adopt 0.3% on entire credits amount of INR 6,39,55,000/ -. 8. Ld. Counsel for the assessee also pointed out that the assessment order is also marred fr....