TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 549
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....h the risk management strategy formulated by CBDT under the head CRIUV/VRI and by the Investigation Wing that the assessee has taken accommodation entries in the form bogus sales/purchase amounting to Rs.2,37,43,753/- during the Financial Year 2017-18 from one Shri Ashok Kumar, proprietor of M/s KB Enterprises, reassessment proceeding was initiated by issuing notice under Section 148A(b) of the Act dated 12.03.2022. It was further alleged that the assessee claimed purchases of Rs.18,84,05,346/- out of which purchases of Rs.2,37,43,753/- from Shri Ashok Kumar are bogus. The assessee thereafter submitted the bank statement, ledger account of M/s KB Enterprises in the books of assessee, purchase invoices along with written submission. The subject matter of reassessment proceeding relating to purchase was the subject matter of scrutiny. However, such purchase made by the assessee from M/s KB Enterprises was found to be bogus and added to the total income of the assessee under Section 69C of the Act. The Ld. CIT(A) restricted the addition @ Rs.6% of the entire addition of Rs.2,37,43,753/-. Hence, the instant appeal by the Revenue. 3. However, the assessee has challenged the maintaina....
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....t further speaks of information of conducting search proceeding in the case of M/s KK Spun India Ltd. by the DDIT, Investigation Unit (1) New Delhi wherein various incriminating documents were gathered and examined. One Shri Aditya Jain being an accommodation entry operator had been found to provide accommodation entries to M/s KK Spun India Ltd. Summons were duly issued to Shri Aditya Jain and his statement was recorded on oath and in the post search proceeding Shri Aditya Jain admitted on oath that he has provided accommodation entries to various beneficiary in reverse of cash and received commission on the same. It further found many dummy proprietary concerns were used for the purpose of accommodation entries. Shri Ashok Kumar, proprietary of M/s KB Enterprises is one of such dummy entries who had provided accommodation entries to the assessee before us. The 5th paragraph of the said order specifically speaks of formation of opinion of escapement of assessment by the Ld. Assessing Officer solely on the basis of the above information and not independent application of mind by the Ld. Assessing Officer is evident from the same. Further that, it is the case of the assessee that th....
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....of the Petitioner in the arrangement of providing accommodation entry by contriving bogus short term capital loss. From the aforementioned information, it cannot be concluded that all the transactions with respect to the shares of IISL and SRK were sham in nature. Further, there is nothing to show that the information produced above was applicable to the Petitioner. 28. In the reasons provided for issuance of the impugned notice, the AO stated that the Petitioner had purchased the shares of SRK on 21.08.2013 at the average price of Rs. 167.63 per share and sold off at the average price of Rs. 35.05 per share on 24.03.2014, whereas the shares of IISL were purchased on 21.08.2013 at the average price of Rs. 41.10 per share and sold off at the average price of Rs. 8.26 per share on 06.03.2014. The AO concluded that through investments in the said shares, the Petitioner created bogus short term capital loss in order to evade tax liability. 29. Mere purchasing and selling of the shares by the Petitioner would not in itself lead to the conclusion that the transactions were fraudulently contrived to secure accommodation entries for evading tax liability. The conclusion a....
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....e. Apart from that the order under Section 148A(d) was based on the incorrect assumption of fact of assessee never undergone any assessment under Section 143(3) of the Act whereas the assessment was duly framed in the case of the assessee under Section 143(3) of the Act by and under the order dated 24.04.2021 by NFAC wherein the purchases made by the assessee during the year under consideration was duly accepted. Had there been any proper investigation conducted by the AO, this particular fact would have certainly been discovered by him and he would have not come to the formation of belief of escaping assessment by the assessee on this ground. Under this facts and circumstances of the matter having regard to the order passed by the Hon'ble jurisdictional High Court in the case of Sanjay Kaul Vs. ITO (supra) and taking into consideration of this particular fact of nonapplication of mind by the Ld. AO and further no enquiry having been conducted by him, we find the reason to believe drawn solely on the basis of the DDIT Investigation Wing report is nothing but a borrowed satisfaction which renders the proceeding under Section 147/148 of the Act vitiated and the proceeding is, therefo....
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....nancial implication is Rs. 23743753/ -. From the available information the estimated income of the assessee during the financial year should have been at least to the tune of Rs 23743753/- . 3. As the information was self-sufficient, it was considered that further enquiries u/s 148A(a) of the I.T. Act were not required. Therefore, in accordance with section 148A(b) of the I.T. Act, an opportunity of being heard was provided to the assessee, with prior approval of Principal Commissioner of Income Tax-20, Delhi, vide notice u/s 148A(b) of the I.T. Act with DIN No. ITBA/AST/F/148A(SCN)/2021- 22/1040643357(1)dated 12.03.2022.The said notice was duly served upon the assessee through declared e-mail and also through speed post with tracking ID No. ED875007415IN requiring it to furnish the relevant details along with supporting documentary evidence with respect to the transactions as cited above, to this office within seven days of receipt of the notice. Vide the above said notice the assessee was also asked as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in this case for the A.Y. ....