TaxTMI 
TaxTMI 
2025 (9) TMI 419
X X X X Extracts X X X X
X X X X Extracts X X X X
....tax Act, 1961 (Act) without following the ratio of the jurisdictional High Court wherein it was held that where the Ld. Assessing Officer (AO) has not made any additions based on the recorded reasons hence the reassessment is bad in law. 2. That, on the facts and circumstances of the case and in law the Ld. NFAC has erred in confirming an addition of Rs. 4,89,69,600/- under section 68 of the Act without obtaining the requisite sanction under section 151 of the Act. 3. That, on the facts and circumstances of the case and in law the Ld. NFAC has erred in confirming an addition of Rs. 4,89,69,600/- under section 68 of the Act where the Ld. AO has not disposed of the objections raised by the assessee through a specific separate order. 4. That, on the facts and circumstances of the case and in law the Ld. NFAC has erred in confirming an addition of Rs. 4,89,69,600/- under section 68 of the Act, where The Ld. AO has failed to appreciate that the provisions of sections 147 & 148 of the Act are not applicable when assessment is to be based on a search initiated on a third party. The same is governed by section 153C of the Act which contains a non- obstante clause....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Authorised Representative of the assessee preferred not to press ground no.2 and ground no.9 relating to sanction u/s 151 of the Act and personal hearing through video conference respectively. Accordingly, these two grounds are dismissed. 4. In ground nos.1, 3, and 4, the assessee has agitated the action taken u/s 147/148 of the Act by claiming that the Ld. Assessing Officer has not made any additions based on the recorded reasons and also the objections raised to reasons were not disposed of by the AO. Hence the reassessment is bad in law. 5. It is submitted by the ld.AR that the AO issued recorded reasons alleging transactions with one Yashwi Commodities P. Ltd. However, the addition was made w.r.t. transactions with Jet Air Agencies P.Ltd. In response to the reasons the assessee had pointed out that no transactions were made with Yashwi Commodities Ltd. However, the AO without disposing of the objections issued letter to NMCE which provided information of the sub broker of the assessee and the transactions. 6. We find no merit in the contentions of the assessee in this regard. It is a fact on record that though initially reopening was proposed w.r.t. Yashwi Commodities ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... income of the assessee under Section 153C of the Act. However, the same does not mean that he is bound to exercise the said jurisdiction. In the event, the AO does not assume it's jurisdiction to proceed with making an assessment/ reassessment under Section 153C of the Act, recourse to Section 147/148 is not ousted. In the above judgement, the Hon'ble Delhi High Court has referred to the decisions of Hon'ble Supreme Court in cases of PCIT vs. Abhisar Buildwell (P.) Ltd., 149 taxmann.com 399 (SC), Amar Jewellers vs. ACIT, 137 taxmann.com 249 (Guj.), CIT vs. Kabul Chawla, 380 ITR 573 (Delhi), PCIT vs. Saumya Construction Pvt. Ltd., 387 ITR 529 (Guj.), Shyamsundar Khandelwal vs. ACIT, 161 taxmann.com 255 (Raj.) etc. The Hon'ble Court held that it was unable to concur that provisions of sections 139, 147, 148, 149 and 153 are overridden merely on account of assets, books of account, documents and materials being seized or requisitioned which either belong to or contain information regarding a person other than the one searched. If the Assessing Officer does not exercise the jurisdiction u/s 153C of the Act, recourse to normal assessment or reassessment are not foreclosed. The Hon'ble ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arried out, found that most of the entities who had booked bogus losses were dummy entities who had facilitated bogus loss or profit to other real beneficiaries. On the basis of this investigation, it was informed that the transactions entered into by Jet Air Agencies P.Ltd Limited during the period relevant to AY.2010-11 were bogus fictitious transaction to accommodate accumulate bogus loss/profit. It was also found that the assessee was also one of the beneficiaries of such accommodation entry. Information received revealed that total transaction of the assessee with the said sub-broker was to the tune of Rs. 4,89,69,600/- which was treated as non-genuine transaction and added as Income from Other Sources u/s 68 of the Act. 10. The ld.CIT(A) in further appeal before him observed that the appellant at first has denied of entering any transaction with the Sub broker M/s Jet Air agencies (P) Ltd. But afterwards accepted the said transaction claiming genuine. But even after retracting its first denial, the appellant was unable to establish the transaction with M/s Jet Air Agencies (P) Ltd. being genuine despite availing ample opportunity of hearing. Considering the entire conspect....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o Rs. 4,89,69,600/- in respect of transactions carried out from 22.03.2010 to 26.03.2010. Gross speculation income was Rs. 9,35,600/- and after excluding Rs. 4,055/- being Brokerage, Service tax and other charges, net amount was Rs. 9,31,545/-. 12.1 The Office of Pr. DIT(lnv.) Kolkata on the basis of its investigation has concluded that certain brokers/sub-brokers involved in providing accommodation entries to various parties in the form of profit and or loss as desired by them and the transactions entered into by the assessee company with these entities during the period relevant to A.Y.2010-11 are not genuine business transactions and are merely accommodation entries which has been routed through NMCE by colluding with the Brokers/Members of NMCE to make them appear genuine. The assessee company has reportedly taken accommodation entries to the tune 4,89,69,600/-from one party mentioned above. The modus operandi involved as informed by the operators is:- "The income/profit and loss in the form of commodity are mainly generated through the trading at approved Commodity Exchanges. For this two membership are required in one membership losses are generated and the other ....