TaxTMI 
TaxTMI 
2026 (1) TMI 187
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..... 2. The assessee is a company primarily engaged in specialised offshore and infrastructure-related business activities, including fabrication, assembly and maintenance of offshore structures in the hydrocarbon sector, both onshore and offshore, as well as execution of civil infrastructure projects such as water distribution pipelines, water treatment plants and allied works. For the year under consideration, the assessee filed its return of income on 30.10.2019 declaring a total income of Rs.66,80,30,300/-. Subsequently, the case was reopened under section 147 of the Act and an order under section 148A(d) was passed on 31.03.2023, culminating in the impugned assessment order. 3. During the relevant previous year, the assessee had secured a substantial offshore contract from M/s. L&T Hydrocarbon Engineering Limited on behalf of M/s. ONGC Ltd. for execution of work at offshore platforms. The said project was of considerable technical complexity and duration. In order to execute the project efficiently and in conformity with technical and operational requirements, the assessee entered into a consultancy arrangement with M/s. AGV Consultants for providing marine spread along wit....
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.... 5.6 I have gone through the facts of the case and have considered the submissions filed by the appellant as well as material on record including the case laws relied upon by the appellant. 5.7 The Assessing Officer has effectively relied upon certain inconsistences in documentary evidence as well as survey findings as stated above for arriving at the conclusion that "no genuine business activity / transaction was occurred between the assessee (DOL) and M/s. AGV Consultants but it was created through well planned and executed scheme by the assessee in order to achieve the predetermined objectives". 5.8 In the impugned assessment order, the Assessing Officer has stated as under: "On perusal of assessee's reply and copy of agreement(s) furnished by the assessee and M/s. AGV Consultants (supra), it can be observed that not only the contents of both the agreements are differ from each other but the execution dates mentioned on both the agreements are also differ. Even, one of the agreement furnished by the assessee is duly signed and stamped however, on the other hand the agreement furnished by M/s. AGV Consultants is without any signature and stamp on each ....
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....ee received the aforementioned proceeds out of sale of shares of the scrip, in reality it was his own cash which he received back through some clandestine deals. The detailed analysis and the modus operandi discussed above firmly establish the events in the instant case. Now the question is whether to prove some transaction as sham, does the assessing authority needs to expose all the four corners of the scheme and establish its findings through fool proof documentary evidences only at par as required in a criminal proceeding and further, whether the surrounding circumstances, human conduct and preponderance of probabilities along with related documentary evidences are not sufficient to establish a transaction as such."[Page 28] "As mentioned above that the shares of this penny stock is controlled by a group of people viz promoter/operator/brokers. All purchases of shares were arranged by them on assurance of booking bogus LTCG/loss in favour of the beneficiaries. It is fact and evidenced from the detailed enquiry conducted by the Investigation Wing that they have not only arranged the sale of shares but also arranged for sales of shares through their entities and by payin....
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....re contracts of the nature undertaken by the assessee necessarily requires deployment of specialised marine spread, technical expertise and experienced marine crew. The engagement of a technical consultant or service provider for such purposes is not only commercially prudent but is often indispensable for timely and efficient execution of such projects. 11. The material on record demonstrates that pursuant to the award of the offshore contract, the assessee entered into a consultancy arrangement with M/s. AGV Consultants on 13.08.2018 for providing marine spread along with requisite marine crew and associated services. It is not in dispute that the services were rendered during the relevant period and that four invoices aggregating to Rs.3,75,00,000/- plus applicable taxes were raised. The assessee has placed on record copies of the consultancy agreement, invoices, ledger extracts, bank statements evidencing payments through regular banking channels and Form 16A evidencing deduction and deposit of tax at source. These documents collectively establish that the transaction was carried out through recognised commercial channels and duly recorded in the regular books of account. ....