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TMI Blog2017 (8) TMI 1659X X X X Extracts X X X X X X X X Extracts X X X X ..... ng meagre income and therefore, the creditworthiness of the companies has not been proved. Further, most of the companies claimed to have received share application money at a huge premium to its face value. In others the sources of funds have been shown as sale of bogus investments of unquoted equity shares. As per Website information, the directors of above named companies are also directors in other companies - apparent strength of documentary proof of returns of income filed with RoC, Income Tax Department and opening of bogus bank accounts from bogus addresses and subsequent transactions through banking channels are emboldened the entry operators and the beneficiary entities to embark upon such a complex, fraudulent and fictitious process involving a huge number of companies and other entities. With regard to retraction by Shri Praveen Jain and his associates on the statement recorded on oath under section 132(4) of the Act, the subsequent observations made by the Assessing Officer and reproduced hereinabove, clearly indicates that the said retraction is nothing but an afterthought and more so, the entire process is fictitious and fraudulent process for evading taxation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012. Subsequently, notices under section 153C of the Act were issued on 06.02.2015 and the assessments were completed under section 143(3) r.w.s. 153A 153C of the Act on 31.03.2015 by making addition under section 68 of the Act. 3. Aggrieved, the assessee is in appeal for both the assessment years before the ld. CIT(A). After considering the submissions of the assessee and by observing that no incriminating materials were found during the course of search proceedings and post search proceedings, the ld. CIT(A) deleted the addition made under section 68 of the Act for both the assessment years. 4. On being aggrieved, the Revenue is in appeal before the Tribunal for both the assessment years. With regard to assumption of jurisdiction, the ld. DR has submitted that service of notice under section 153A of the Act followed by the search conducted under section 132 of the Act, the Assessing Officer has validly assumed jurisdiction to complete the assessment under section 143(3) r.w.s. 153A 153C of the Act. Moreover, the Assessing Officer has brought on record the documentary evidences showing that the alleged share holders were only paper companies whose credit worthiness and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation, in his statement recorded on oath under section 132(4) of the Act, Shri Pravin Jain has admitted that he has indulged in providing accommodation entries and also explained the complete modus operandi of providing such entries. The detailed admission of Shri Pravin Jain made in his statement was reproduced in the assessment order under para 6.5. Subsequently, Shri Pravin Jain and his associates retracted the statement made under section 132(4) of the Act, which were not found acceptable by the Assessing Officer and his observations are reproduced as under: When all the affidavits are read together, several contradictions emerge, which go to establish that it is a planned move made by the assessee to thwart the process of investigation in the case of beneficiaries of his accommodation entries: a) All the stamp papers which have been used to file the affidavits are brought from the same vendor and on a specific date i.e., 25.04.2014. b) All affidavits have been notarized by one common notory i.e., Shri N.R. Gupta bearing registration No. 724. c) All the persons filing affidavits have been identified by one common advocate Shri Narayankumar P. Rana. d) All the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. With the above observations and by referring to various decisions, the unproved receipt of share application money was brought to tax. On appeal, by accepting the statement of the assessee that no incriminating material has been found leading to assessment under section 143(3) r.w.s. 153A 153C of the Act, and by following various decisions, the ld. CIT(A) has deleted the addition made under section 68 of the Act for both the assessment years. 6.2 In this case, admittedly, a search and seizure operation was conducted on 18.12.2012. Further, a search and seizure action was also carried in the case of Shri Praven Kumar Jain group on 01.10.2013, who was stated to be one of the leading entry providers operating in Mumbai, indulging in providing accommodation entries like bogus purchases, sales, unsecured loans, share capital, etc. In his statement recorded on oath under section 132(4) of the Act, Shri Praveen Kumar Jain has admitted that he was indulged in providing accommodation entries and also explained the complete modus operandi of providing such entries. Before the ld. CIT(A), the assessee has submitted that consequential findings in the case of the Shri Pra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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