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2018 (3) TMI 661 - AT - Income TaxReopening of assessment - Addition u/s 68 - as per revenue assessee has opened a bank account through its Director who has operated that particular account and carried out the business of giving accommodation entries to the various parties by charging the commission - Held that:- Shri Pradeep Jindal is the director of the company. Therefore, the director of the assessee company himself has stated that he is an entry operator and from bank account of Precision Agencies Pvt. Ltd (assessee) he is providing accommodation entries. The bank account of the assessee with State Bank of India also corroborates above facts. AO has also verified the details of the return of income filed by the assessee for AY 2000-01 which is mentioned in the reasons recorded. It cannot be said that AO has not applied his mind to the information received from the Investigation Wing. Further, when the statement is given by the director of the assessee company itself, that he is engaged in providing accommodation entries, where the precise bank account of the assessee was found, where amount involved in the accommodation entries was also determined and the return of assessee was also collected by the assessee and recorded in the reasons, we are of the view that there is no infirmity committed by the AO in reopening the case of the assessee. On merits as referring to assessee's contention of cheating on the assessee by Sh. Pradeep Jindal and the bankers in view of the facts and circumstances of the case, all the appeals are set aside back to the file of the Ld. assessing officer with a direction to the assessee to first prove before the AO that there is a cheating on the assessee by Sh. Pradeep Jindal and the bankers. The assessee also is directed to produce the minutes book of the company to show the resolution of that particular date that it does not exist in the minutes book. Unless the assessee comes out with the clean hands before the Ld. assessing officer it cannot escape the taxation of the whole amount. Thereafter the Ld. assessing officer is directed to make complete examination of the bank accounts by obtaining necessary information from the bankers by issue of summons under section 131 of the Income Tax Act and identify the beneficiaries with proper documentation and evidences and they may be taxed on the above sum by application of the provisions of section 150 (1) of the Act, if possible. The assessing officer may also take into consideration the applicability of Prohibition of Benami Property Transaction Act, 1988 on such transactions and make necessary efforts to penalise the entry operator, the beneficiaries and the bankers, if found guilty. Set aside all these 5 appeals back to the file of the Ld. assessing officer to carry out necessary Inquiries as directed and then to decide about the taxability of the sum involved in the bank account of the assessee with state bank of India opened and operated by Sh. Pradeep Jindal in the name of the assessee company.
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