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TMI Blog2023 (9) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... er under Section 143(3) read with section 153A of the Act dated 26th April, 2021, was dismissed. ii. In ITA No. 1945/Mum/2023, the learned Assessing Officer has passed the assessment order for A.Y. 2012-13 under Section 143(3) read with section 143A of the Act 02. Assessee has raised identical grounds of appeal for both the appeals. Therefore, the grounds of appeal in both these appeals are as under:- "1. Under the facts and circumstances of the case and in law, the CTT (A) has erred in confirming the order passed by the AO being bad in law on various ground in law and in equity and the same should be annulled. 2. Under the facts and circumstances of the case and in law, the CIT (A) has grossly erred in not allowing access to the incriminating material relied upon by AO for the appellant to rebut it and thereby has violated the principles of natural justice and as such order passed should be annulled and or set aside. 3. Under the facts and circumstances of the case and in law the CIT (A) has erred in confirming the estimation made by the AO based on conjecture, surmise and capris without there being any material to suggest that the appellant had ever earned such income an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee before the Hon'ble Bombay High Court, wherein Hon High court vide order dated 15th July, 2019, quashed the order passed under Section 127 of the Act. Subsequent to that, the case of the assessee was retained at Mumbai, pursuance to the direction of Hon'ble High Court, the case was assigned to the learned Assessing Officer on 26th August, 2019. Meanwhile, Mumbai Investigation Wing conducted another search on the assessee on 19 March 2019. Therefore, notices under Section 143A of the Act was issued on 29 August 2019. In response to that notice on 5th September 2019, assessee submitted that return filed under Section 139 of the Act may be treated as return filed under Section 153A of the Act. The assessee was also issued notice under Section 142(1) of the Income-tax Act, 1961 (the Act) dated 29th September 2019, which assessee did not comply. The assessee was found to be and also admitted on oath in statement under Section 132(4) of the Act, that he is engaged in manipulation of share price of various companies in order to provide bogus entries of long term capital gain, short term capital loss and business loss. The evidences were gathered during the search ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Accordingly, the assessment order under Section 144 read with section 153A of the Act, was passed on 12th September, 2019, determining the total income of the assessee at Rs.50,45,57,584/-. This is the impugned order which was decided by the learned CIT (A) and against that order of the learned CIT (A), assessee has filed appeal in ITA No.1946/Mum/2023. 010. In ITA No.1945/Mum/2023, the learned Assessing Officer has passed the assessment order for A.Y. 2012-13 under Section 143(3) read with section 143A of the Act wherein based on the admission of Mr. Naresh Jain, assessee and his allies and other operators it was established that assessee is engaged in rigging the price in the shares of further 12 companies in connivance with his various associates entered into prearranged transaction on the stock exchange using various dummy accounts. These prearranged transactions are accommodation entries to various beneficiaries, who brought their unaccounted income into the books of account without paying taxes. Therefore, assessing officer computed the accommodation entries covering all the trade data were made on the stock exchange in those companies. Accordingly, the learned assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, (iii) names of directors of companies involved in this massive money laundering activities, (iv) and the rate of commission that he used to charge on the same. Based on this, the learned assessing officer has estimated the total turnover of the various companies on the basis of information available on record about the volume of unaccounted income converted into tax-free income of various beneficiaries. On the above sum, the assessee as per his own admission has stated that he used to earn commission income at the rate of 2% to 3 %; the learned assessing officer computed the income of the assessee at the rate of 3% on the above sum. Ld CIT (A) confirmed it. We do not find any infirmity in the order of the lower authorities so far as the adoption of the rate of 3% as commission income of the assessee. Thus, ground numbers 1 to 5 of the appeal in ITA No. 1946/Mum/2023 and ground numbers 1 to 5 of appeal in ITA No. 1945/Mum/2023 are dismissed. 015. With respect to the credit card expenditure confirmed by the learned CIT (A), we find that when the income of the assessee has been taxed, he has the source of such expenditure available and therefore, making the addition of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oney laundering with the concerned Assessing officer to take action in their hands in accordance with the law. ii. Cases of all the assessee who are named as beneficiaries such as Ranka Jwellers and its entities, individuals also may be reopened and dealt with according to the decision of Honourable Supreme court in case of Pr. CIT v. Abhisar Buildwell (P.) Ltd. [2023] 149 taxmann.com 399 (SC) and instructions of CBDT. Ld AO may treat it as directions u/s 150 of the Income tax Act. It applies in case of all the beneficiaries and other persons named in assessment order or as per information available with the AO referred to in assessment order. iii. Intimate securities and exchange board of India the names of those directors who are involved in these operations. iv. Intimate the list of beneficiaries to the securities and Exchange board of India who has earned unaccounted income by way of a synchronized trade through the cartel of these accommodation entry providers. v. Intimate to SEBI all the share brokers, Depositories through whom buy and sale transaction of these securities are carried out and did not report to such suspicious transactions to SEBI and RBI. vi. To inti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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