9911796707
TMI Blog2019 (9) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... and notice under section 148 was issued after recording reasons and getting approval of the competent authority. The reasons are reproduced in the assessment order as under : "A search & seizure action was conducted by unit-VI(2) at the residence and offices of Sh. Surender Kumar Jain and. Sh. Virender Jain on 14.09.2010 various incriminating documents/material was seized during the course of search. During the post search investigation and perusal of seized documents it was observed that Sh. Surender1 Kumar Jain and Sh. Virender Jain were engaged in the business of providing accommodation entries by providing cheques/PO/DD in lieu of cash to a large number of beneficiary companies thorough various paper and dummy companies floated and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital gains or loans as per the specific requirement of the recipient clients were provided them in lieu of the cash received from them. In this way, the chain for providing an accommodation, entry gets completed. As per seized annexure, the assessee M/s RKG Housing P. Ltd. has taken the following accommodation entries from the following person (beneficiary) as per details hereunder: - Bank Book Date From To (Beneficiary) Bank Cheque/RTGS Cheque Date Amount Through Annx. no. pg. no. 01-02-07 Hillridge Investment s ltd. RKG Housing P. Ltd. HDFC 01-02-07 20,00,000 Kukreja A-65 4 08-02-07 Hillridge Investment s ltd RKG Housing P. Ltd. UTI Ch. No. 068153 08-02-07 20,00,000 Kukreja A- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of the Investor clearly defies the claim of genuineness and creditworthiness of the person who have allegedly made the investment as they never had sufficient balances and the cheque issued to the beneficiaries are cleared by way of transfer of funds from associate concerns involved in the business of providing bogus accommodation entries. As per explanation offered by the assessee about the nature and source of the sums found credited in the books was not satisfactorily explained and there was a prima facie evidence against the assessee of receipt of bogus accommodation entry. The assessee has failed to discharge its onus to produce legally acceptable evidence of creditworthiness of the subscribed. This is conscious and willful attempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount involved and made the addition under section 69C of the I.T. Act on account of expenditure from undisclosed sources. The A.O, therefore, computed the total income at Rs. 40,19,460/-. The assessee challenged the reopening of the assessment as well as addition on merit before the Ld. CIT(A). However, the appeal of assessee has been dismissed. 3. The assessee in the present appeal has challenged the reopening of the assessment under section 148 of the I.T. Act, addition of Rs. 40 lakhs under section 68 of the I.T. Act and addition of Rs. 20,000/- under section 69C of the I.T. Act. 4. I have heard the Learned Representative of both the parties and perused the material on record. 5. Learned Counsel for the Assessee did not argue wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of the Investor Company to ignore the other questions. He has submitted that totality of all the answers should have been considered by the authorities below. He has submitted that since Investor Company has confirmed making investment in assessee company, therefore, addition should have been deleted. 7. On the other hand, Ld. D.R. relied upon the following decisions : 1. PCIT vs. NRA Iron & Steel (P.) Ltd., [2019] 103 taxmann.com 48 (SC). 2. PCIT vs. NDR Promoters Pvt. Ltd., 2019-TIOL- 172-HC-DEL-IT. 3. CIT vs. Nipun Builders & Developers (P.) Ltd., 350 ITR 407 (Del.). 4. CIT vs. Nova Promoters & Finlease (P) Ltd., 342 ITR 169 (Del.). 5. CIT vs. N.R. Portfolio Pvt. Ltd., 29 taxmann.com 291 (Del.) 6. CIT vs. MAF Academy (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Investment Ltd., (Investor) was produced before A.O. and his statement was recorded on oath. Copy of his statement is filed on record in which he has stated that he joined this company as an Accountant in October, 2013 and become Director in January, 2014. He was not conversant with the financial affairs of the assessee company in assessment year under appeal. He was also not in a position to give any reasons for investing in assessee company without any return and acting in an improbable manner against the wisdom of a normal prudent person. Most of the questions he did not answer. In answer to Question No.24, he has admitted that M/s. Hillridge Investment Ltd., has given accommodation entry of Rs. 40 lakhs to the assessee company in asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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