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2023 (1) TMI 1276 - ITAT MUMBAIUnaccounted commission earned - bogus LTCG in penny stock by floating paper companies - HELD THAT:- From the investigation conducted by Investigation Wing of the Income-tax Department and assessment proceedings, it is proved on record that assessee being into the business of providing accommodation entries for unsecured loan, share application money, long term capital gain, for bogus sales and purchases, for entries of turnover trading and accommodation entries for facilitating exempt income from bogus LTCG in penny stock by floating paper companies and by charging commissions, which is nothing but a fraud on the state exchequer, i.e. it is an illegal business of money lanundering. Assessee was also into providing accommodation entry in the form of circular transactions by securing bogus purchase bills of various nature like capital goods, trading raw materials, etc., then convert the same into cheque and RTCG from one dummy concern to the main beneficiary or in the sister concern in the form of share application money. AO as well as Ld.CIT(A), after duly thrashing the issue factually as well as legally estimated the commission income having earned by assessee during the years under consideration on different transactions for loans and advances for share application money for purchase and sales, etc. As brought to the notice of the Bench by the Ld.DR for the Revenue that in hundreds of cases, Shri Pravin Kumar Jain has provided accommodation entry for unsecured loans, bogus share application money, etc. without carrying out any real business, but operating through dummy / paper companies. AO as well as Ld.CIT(A have rightly quantified the unaccounted commission earned by the assessees during the year under consideration from 54 companies which is nothing but a huge network of unlawful business to evade the tax for companies operating through them and by the assessee themselves also. Rather, they are in to money laundering.
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