TaxTMI 
TaxTMI 
2025 (7) TMI 870
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.... case of Jignesh Shah and Sanjay Shah and therefore, the AO ought to have initiated the proceedings u/s. 153C of the Act. 2. The learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in confirming the order passed by the Assessing Officer u/s. 143(3) r.w.s.147 r.w.s.144B of the Act which is illegal and bad in law. 3. The Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in confirming the action of the Assessing Officer in treating the return of income filed by the assessee on 03.08.2021 in response to notice u/s. 148 of the Act as non-est without serving upon the assessee any show cause notice in that regard and without pointing out any defect whatsoever within the meaning and scope of section 139(9) of the Act. 4. The Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in confirming the assessment order passed by the Assessing officer u/s. 143(3) r.w.s. 147 r.w.s. 144B of the Act without serving upon the appellant assessee, a notice u/s. 143(2) of the Act even though the appellant assessee has furnished a r....
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....he Assessing Officer without providing the assessee an opportunity of personal hearing through video conference which is in clear violation of the provisions of 144B of the I.T. Act. 10. The learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in confirming action of the Assessing Officer in determining the total income of the assessee in adopting the returned income at Rs. Nil whereas as per return of income filed on 03.08.2021, the assessee has disclosed loss of Rs. 1,122/-, 11. The learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi has erred in not adjudicating the legal issue raised challenging the validity of the assessment proceedings while deciding the appeal. 12. The appellant craves leave to add, alter, amend or modify any of the grounds of appeal on or before the date of hearing of appeal. 3. Heard the arguments of both the parties and perused the material available on record. 4. The entire reasons recorded for re-opening the case of the assessee, as per the letter of the Assessing Officer dated 08.02.2022, read as under: "... on perusal of i....
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....ued with the assessment proceedings culminating with the addition of Rs. 2,02,15,000/- u/s 69 of the Act. 6. The relevant part of the Assessment Order on this issue reads as under: "4. Based on the information from reliable sources; "search u/s 132 was launched on 11.09.2018 in the case of Jignesh Shah and Sanjay Shah of Ahmedabad. The search resulted into seizure of unaccounted cash of 19.37 Crores (related to accommodation entries and commission earned thereon) along with incriminating digital as well as documentary evidences. Clandestine record of unaccounted cash, synchronized trading, proving bogus LTCG in various BSE listed scrips and transport of such cash through angadiyas was found to be maintained in secret Tally Data file with company name "123", which was impounded during survey proceedings u/s 133A from business premises of Sanjay Shah. In this secret and coded file, delivery (recd) and movement (through angadiya etc.) of cash was recorded against transactions of shares on BSE platform Furthermore, the receipt of commission in form of cash is also recorded under the head "LTCG COMMISSION". The evidences manifest that this was the record of accommodation ent....
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....ciaries. The duo also admitted being involved in providing accommodation entries including bogus LTCG and contrived losses. 5. The assessee is s sub broker of Vijeta Broking Limited, and during the year under consideration, the assessee has received brokerage Income. The assessee is also engaged in the business of medicines. It is a known fact that sub-brokers help their clients to buy and sell securities in the stock market. They offer information to them on various securities. They also pass on the clients trading orders to the trading member or brokerage firm, with which they are associated. Every sub-broker has to maintain books and documents specified in regulation 17 as per SEBI guideline However, the assessee has not furnished any of the books/ documents to prove that no business transaction were dealt with the Jignesh shah and Sanjay Shah or their concern. The assessee, in reply dated: 24.02.2020, had stated that "In regards of your information of Rs. 2,02,15,000/- we have made payment to group concern..." The details of the payment made to the group concerns have not been furnished by the assessee. 6. During the year, the assessee has availed/obtained acc....
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....ocuments during the assessment as well as appellate proceedings in order to prove that no business transactions were dealt with the Jignesh Shah and Sanjay Shah or their concern. Thus the appellant is only concocting the made up story in order to cover up the unexplained money deposited during the demonetization period. Therefore there is no need to take a divergent view from the view taken by the AO during the assessment proceedings..." 9. Thus, on going through the reasons recorded, the Assessment Order and the Ld. CIT(A) order, we find no nowhere as to, i. What are the accommodation entries received by the assessee? ii. What is the information available with the Assessing Officer? iii. Whether it is payment or receipt by the assessee? iv. What are the entities through which the assessee received the amount or the accommodation entries? v. What is the bank statement from which the amounts/entries have been issued to the assessee? vi. What is the bank statement to which the amounts/entries have been received/deposited by the assessee? vii. Did the Revenue prove primarily the custody of the amount in the accounted or....