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TMI Blog2015 (11) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... f accounts and profit has to be estimated by applying a comparative profit rate in the same trade. Though there can be a little guess work in estimating profit rate but such profit rate cannot be punitive. - ITA No. 1429/Del/2015 - - - Dated:- 30-11-2015 - SHRI P.K. BANSAL: ACCOUNTANT MEMBER For the Appellant: Shri Ved Jain FCA For the Respondent: Shri P. Dam Kanunjna Sr. DR O R D E R This appeal has been preferred by the assessee against the order of the CIT(A) dated 15/12/2014, passed u/s 144 read with section 147 of the income-tax Act, 1961, upholding the reassessment order passed u/s 148 and on merits the CIT(A) reduced the addition to ₹ 94,771/- as against ₹ 47,73,855/-, made by the AO. 2. Brief facts of the case are that the assessee filed the return declaring an income of ₹ 1,24,182/-, which was completed u/s 143(3). Subsequently, the assessment was reopened on the allegation that the assessee had made bogus purchases. The assessment was completed by the AO by making addition of ₹ 4,73,855/-, treating the entire purchases made by the assessee from M/s Shree Bankey Bihari Trading Company, to be the accommodation entries. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided accommodation entry through thirty-seven paper entities. The list of the firms giving accommodation entry is enclosed as annexure-B. The list of accommodation entry recipients, has been obtained from Sh. Naveneet Jain Sh. Vaibhav Jain. It does not give year wise bifurcation. Hard copy of the list is enclosed as annexure-C, duly signed by Sh. Vaibhav Jain. Thus, the firms mention in the list 'B' have provided accommodation entries to the firms mentioned in list 'C'. 5. The soft copy of the information in respect to annexure A, B C is also enclosed. 6. The information of accommodation entry includes A.Y. 2006-07 also, which is a time barring year for taking action u/s 148. 7. This information is forwarded to you for early dissemination to various field offices in Delhi (Soft copy also enclosed). On examining the list of accommodation entries provided by Sh. Rakesh Gupta Sh. Vishesh Gupta and Sh. Navneet Jain Sh. Vaibhav Jain pertaining to A.Y. 2006-07, it is noticed that the following accommodation entries have been taken by the assessee namely M/s Radhay Shyam Co.:- Sl.No. Accommodation e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )-1I/2012-13/3898 dated 19.03.2013 received from the Commissioner of I. Tax, Central-II, New Delhi along with a CD containing the details of accommodation entries provided by Sh. Rakesh Gupta Sh. Vishesh Gupta and Sh. Navneet Jain Vaibhav Jain and directing this office to take necessary action as per section 148 in respect of entries pertaining to A.Y. 2006- 07, which is time barring on 31.03.2013. The information provided by the CIT, Central-II, New Delhi vide his letter dated 19.03.2013 reads as under :- Kindly find enclosed herewith letter dated 13.03.2013 of ACIT, Central Circle-10 duly forwarded by the Addl. CIT, Central Range-IV, along with its enclosures on the subject mentioned above. 2. The assessment of search cases of Sh. Rakesh gupta, Sh. Vishesh Gupta, Sh. Navneet Jain Sh. Vaibhav Jain are under process with the ACIT, Central Circle-10. During the assessment proceedings u/s 153A in the aforesaid cases, details regarding accommodation entries given by the above entry providers has been obtained by the A.O. 3. The list of accommodation entry recipients has been obtained from Sh. Rakesh Gupta and Sh. Vishesh Gupta. Hard copy of the list is enclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whose lists have been provided by them to the ACIT, Central Circle-10, New Delhi, therefore, it is fair to conclude that M/s Radhay Shyam Co., whose name is appearing in the said list, has taken accommodation entries from Sh. Rakesh Gupta Sh. Vishesh Gupta and Sh. Navneet Jain Sh. Vaibhav Jain pertaining to AY. 2006-07. In view of the above, I have reasons to believe that income chargeable to tax of M/s Radhay Shyam Co. amounting to ₹ 4,73,855/- for the F.Y. 2005-06 relevant to AY. 2006-07 has escaped assessment and it is a fit case for initiation of proceedings u/s 147 of the Act. Proposal in the prescribed form for the AY. 2006-07 (F. Y. 2005-06) is submitted herewith for kind consideration and necessary approval u/s 151(2) of the I. Tax Act, 1961 as the same is getting barred by limitation on 31/3/2013. If approved, notice u/s 148 of the act may be issued. Sd/- 28.3.2013 (Pawan Kumar Vashist) Income Tax Officer Ward-39(3), New Delhi. 6. Since in the case of Unique Metal Industries (supra), similar reasons were recorded, as have been recorded in the case of the assessee and the party from which the assessee made th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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