9911796707
TMI Blog2017 (5) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... money in the books of accounts with the help of accommodation entry providers which has been exposed by deep and detailed investigation carried out by the investigation wing of the Department. Moreover, the facts in the present case are distinguishable from the above cited case in so far as that the assessee could not produce any of the principal officers/directors of companies for examination whereas in the case cited above the A.O. never asked the assessee company to produce any of the share applicants for cross examination." The brief facts of the case are that the respondent filed its return of income on 27.11.2003 declaring income of only Rs. 4380/- which was processed u/s. 143(1) on 12.12.2003. Subsequently, on the basis of information received from DIT (Inv.), based on vital investigations by them, the AO noticed that the respondent during the year under consideration received a sum of Rs. 35,00,000/- as credited to its bank accounts from following seven parties as accommodation entries : (i). M/s. Pragati Finsec Ltd., (ii). M/s. RGV Finvest P. Ltd., (iii). M/s. Centenary Software P. Ltd., (iv). M/s. Performance Trading & Investment, (v). M/s. Shivam Softech Ltd., ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and submitted that the AO made enquiries in the matter and obtained bank accounts of the alleged share applicants. On perusal of bank accounts, he found that there is a uniform pattern to the deposits/withdrawals of the amounts. The assessee failed to rebut the contention of the AO that invariably the payments out of the bank accounts are immediately preceded by the deposits of equivalent amounts in the said accounts either in cash or through cheque/transfer entries. The ld. CIT(A) has also not recorded any finding in the impugned order against the conclusion of AO that unless the identity and creditworthiness of the entity and the transactions represented by the entries in the bank are correlated with the business activity and the books of account of the said entity, the above pattern and the frequency of deposits and withdrawals at short intervals lends further credence to the fact of the account being used only for the purpose of providing accommodation entries. The alleged share applicants were not found in existence as per report of the postal authorities and the assessee failed to produce any of the principal officer or director of the said creditors. Therefore, the ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s found existing at the address given. No other address was pointed out by assessee otherwise than that on which the summons were issued. As far as the documentary evidence filed by the assessee before the authorities below, we find that in the present scenario, such documentary evidence cannot be relied upon which did not render any help to cross verify the impugned transactions and are against the result of ground level enquiry. In our opinion the peripheral documents in the shape of PAN, so called acknowledgement of returns do not go to prove the identity and creditworthiness of the investors companies, particularly when the entities in question were not found to be existing on the given addresses and that none of the parties were produced nor was there any material on record to rebut the objections of the AO regarding capacity of the alleged investors to make the investment. Similarly, Mere payment by account payee cheque is not sacrosanct nor can it make a non-genuine transaction genuine. The bank accounts of various entities show uniform pattern of transactions and that invariably, the issue of cheques is immediately preceded by the deposits of equivalent amounts in the acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh as the said application is not an unimpeachable document and does not on its own prove the genuineness or authenticity of the transaction. It can at best be treated as a corroborative document. Since the share application form is not an unimpeachable document, it cannot on its own be treated as sufficient for cross-verification of the transaction. We have already held that that mere production of PAN Number or assessment particulars does not establish the identity of a person. The identification of a person includes the place of work, the staff and the fact that it was actually carrying on business and further recognition of the said company/individual in the eyes of public. 29. The bank statements of the investors furnished by the Assessee during the original assessment proceedings were fabricated and misleading. They omitted to show that there was deposit of cash immediately prior to issuance of cheques for preparation of pay orders or DDs in favour of the Assessee regarding subscription of its share capital. False evidence had been adduced by the Assessee during the original proceedings to get undue advantage of giving colour of genuineness to bogus entries through the ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
