2019 (6) TMI 837

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..... himself, that he was engaged in providing accommodation entries through a web of his bogus companies, which were engaged in providing accommodation entries to various assesses. The assessees in appeal are also beneficiaries of such accommodation entries in the form of share application money from the companies of Sh. Praveen K. Jain. The authorities below have discussed the issue threadbare before making and confirming the additions. In the absence of assessees furnishing any further evidence to substantiate the claim of genuineness of the transactions - Decided against assessee. - ITA No.1863/PUN/2018, ITA No.1864/PUN/2018, ITA No.1865/PUN/2018 - - - Dated:- 16-5-2019 - Shri R.S. Syal, Vice President For the A .....

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..... was issued. The AO noted that the assessee allegedly issued its 50,000 shares to M/s. Nakshatra Business Pvt. Ltd. at ₹ 50 per share with face value of ₹ 10/- and premium of ₹ 40/- per share. The AO has extensively reproduced the statement of Shri Praveen K. Jain in the assessment order, in which the latter admitted to be engaged in providing accommodation entries routed through his web of companies. He further admitted that these were only paper transactions in the garb of share application money/share capital etc. He further explained the modus operandi of issuing accommodation entries at a commission of 0.25% of total value of transaction. The AO confronted the statement of Shri Prave .....

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..... 8377; 10/- at a premium of ₹ 40/-. The alleged share applicant in this case is Alka Diamond Industries Pvt. Ltd. which is also one of the companies operated by Shri Praveen K. Jain. The AO made addition of ₹ 25.00 lakh, which came to be affirmed in the first appeal. 6. Aggrieved by the confirmation of addition on this common solitary issue, the three assessees have come up in appeal before the Tribunal. 7. I have heard the ld. DR and gone through the relevant material on record. These three appeals were fixed for hearing for the first time on 18-02-2019 when the assessees were not represented. These appeals were adjourned to 13-03-2019 and 14-03-2019. On the next dates, an adjou .....

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