2025 (2) TMI 1943

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....de by the AO u/s.69A of the Income Tax Act, 1961 ("the Act") on account of transactions alleged to have been entered with Shri Jignesh Shah, an accommodation entry provider. 2. None appeared on behalf of the assessee. Hence, we proceed to dispose of the appeal ex-parte, without the presence of the assessee. 3. We heard the Ld.DR and perused the record. The assessee has filed its original return of income for the year under consideration admitting a total income of Rs. 34.04 lakhs. The AO subsequently, received information that the assessee has entered into certain high value transaction with a person, named, Shri Jignesh Shah, who was alleged to have been providing accommodation entries. Hence, the AO reopened the assessment of the ye....

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....g to the assessment order, it is seen that the A.O reopened the case on the basis of information received that the assessee had entered into share transactions with the concerns controlled by Shri Jignesh Shah. However, during the assessment proceedings, the assessee had from the very outset denied the fact that he had entered into any concerns controlled by Shri Jignesh Shah to the tune of Rs. 95,15,952/-. He stated that he had had no dealings with Choice Equity Broking Pvt Ltd or any other concerns of Jignesh Shah. During the assessment proceedings and the Video Conference, the assessee requested the A.O to provide the names of the concerns and companies controlled by Shri Jignesh Shah, with whom his assessee had made transaction, if any.....

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....eek his explanation regarding the same. The fact that the transactions were not reflected in the financial statements of the assessee, and in the absence of any evidence in this regard being brought on record by the AO that the assessee had infact entered into such transactions, the conclusion drawn by the A.O and the consequent addition made, is without any basis. If the information was gathered on the basis of any statement of Jignesh Shah where the assessee's name was mentioned, the same was required to be provided to the assessee to furnish his explanation. However, the assessment order does not mention any such evidence or statement or any other documentary evidence to corroborate the alleged share transactions of Rs. 95,15,952/-. ....