TaxTMI 
TaxTMI 
2026 (3) TMI 619
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....ata by and under its letter dated 12.03.2018 that the assessee company has taken bogus entry amounting to Rs. 1,62,40,000/- from m/s Sunrise Dealmark Pvt. Ltd., M/s Shyam Dealtrade Pvt. Ltd., M/s Midpoint Traders Pvt. Ltd., M/s Midway Commercial Pvt. Ltd. and credible information of the Wing in respect of cash/ fund deposit in the account of Union Bank of India maintained at Bhawanipur, Kolkata, reopening of assessment was made by the Ld. AO upon recording of reasons. Relevant to mention that bank statements of those companies were examined and analysed, summons were also issued to the principal officers of those companies through Departmental Inspectors who visited the addresses of the company for physical verification, but, no companies were found thereon. Thus, identity or the genuineness or the credit worthiness of these companies were found to be doubtful by the Investigation Wing and the modus operandi is found to be only providing accommodation entries to the beneficiaries through layering in the guise of bogus share, share premium and unsecured loans, etc. in lieu of commission. Further information was also received that one KCA Allied Services Pvt. Ltd. having suspicious t....
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....nt of Rs. 1,76,00,000/ (1,62,40,000 + 13,60,000) has remained undisclosed/ unexplained by your company in absence of any details explaining the above mentioned unexplained entries of Rs. 1,76,00,000/-, the undersigned is left with no option but to resort to best judgment assessment u/s. 144 of the I.T Act 1961. You are again hereby issued final show cause notice by giving last and final opportunity that as to why said entries of Rs. 1,76,00,000/- may not be added to your income." 2.1 The assessee has submitted as follows:- "Company has received total amount of Rs. 2,43,00,000/- from M/s Sunrise Dealmark Pvt. Ltd., M/s Shyam Dealtrade Pvt. Ltd., M/s Midpoint Traders Pvt etc and M/s Midway Commercial Pvt. Ltd. instead of Rs. 1,62,40,000/- as mentioned by Learned AO in show cause notice... In show cause notice learned assessing office has also mentioned that Rs. 13,60,000/- has been received from one of the beneficiary of accommodation entries through paper and shell companies of Mr. Rajesh Kumar Bhutoria & Mr. Lalit Kumar Periwal but you have not mentioned the details of the transaction such as Name of the company/companies, date of transaction etc." 3. In res....
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....ee dated 23.11.2019, i.e., to the reply to the show cause dated 18.11.2019 wherein the fact of selling the shares held by the company in earlier years which has been shown in investment made in shares in the balance sheet as on 31.03.2011 to all those companies and received sale consideration against the sale of shares. The sale of invoices were also relied upon by the Ld. AR. Surprisingly, the shares purchased by the assessee was of Rs. 400/-, remained Rs. 400/- at the time of sale of those shares to the concerned parties as it is evident from the sale invoices. It is the case of the assessee as also argued before us that the Ld. AO has not verified and only relied upon the Investigation Wing's report and neither considered the reply to the show cause notice filed by the assessee. He simply relied upon the order passed by the Ld. AO and the addition was confirmed. It was therefore argued by the Ld. AR that in the absence of any inquiry made by the Ld. AO the entire order is vitiated and therefore, liable to be quashed. 5. On the other hand, the Ld. DR relied upon the order of the authorities below. Further it has been submitted by him that the inquiry u/s. 133(6) of the Act was....
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....eby treated as bogus and added to the income of the assessee as per the income tax act, 1961. (Addition of Rs. 2, 43,00,000) 5.2 I am satisfied that assessee has concealed particulars of his income. Penalty proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 for concealment of income as aforesaid within the meaning of explanation 1 to the sub section (1) of the section 271(1)(c) of the Income Tax Act, 1961 are initiated. 5.3 As per the reply of the assessee mentioned above, assessee has requested to provide the details of the company from whom accommodation entry of Rs. 13,60,000/- received by the assessee company. Accordingly, letter was issued to the assessee in which the details of the companies were provided i.e. Rs. 3,60,000/- from M/s Beauty Suppliers Pvt. Ltd. and Rs. 10,00,000/- from M/s Deepsikha Suppliers Pvt. Ltd. In order to verify the genuineness/creditworthiness of the transactions, notice u/s. 133(6) of the act was issue to all the concerned companies but no response received till date. This shows that these companies are not in existent and are only paper concerns. The investigation wing as well has made exhaustive enquiry and proved that the....