Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (7) TMI 195 - GUJARAT HIGH COURT

2016 (7) TMI 195 - GUJARAT HIGH COURT - TMI - Reopening of assessment - accommodation entities received - Held that:- From the recording of reasons, it cannot be stated that the reasons do not indicate the manner in which the income chargeable to tax had escaped assessment. If the standpoint of the Assessing Officer is correct and at this stage in absence of any contrary contentions and in view of the materials pointed out in the reasons recorded, we would like to proceed on such basis; unescapa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ning of the assesment. Surely, the assessment would be framed on the basis of material that may be available on record and in accordance with law. - Decided against assessee - Special Civil Application No. 18585 of 2015 - Dated:- 28-6-2016 - Akil Kureshi And A. J. Shastri, JJ. For the Petitioner : Mr. S. N. Soparkar, Senior advocate with Mr. Hardik V Vora, Advocate For the Respondent : Mrs Mauna M Bhatt, Advocate JUDGMENT ( Per : Honourable Mr. Justice Akil Kureshi ) The petitioner has challenge .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h assessment, impugned notice came to be issued. The Assessing Officer had recorded reasons which were supplied to the petitioner upon which the petitioner raised objections to the process of re-opening. However, such objections came to be rejected by the respondent by an order dated 5.10.2015. Hence this petition. 2. Learned counsel for the petitioner raised following contentions in support of the challenge to the impugned notice. (1) The notice was issued on 25.3.2015 when the present responde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e and sale of shares by the petitioner including 2.80 lacs shares of one Empower Industries Ltd. was examined by the Assessing Officer and any re-opening on this ground would be based on a mere change of opinion. (3) Counsel submitted that reasons recorded nowhere reflected in what manner, income of the petitioner chargeable to tax had escaped assessment. In absence of any such element, the notice for re-opening could not be issued. 3. On the other hand, learned counsel Mr. Bhatt for the departm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

notice. He further submitted that the reasons recorded sufficiently indicate the manner in which the income chargeable to tax had escaped assessment. At this stage, the Assessing Officer does not have to demonstrate conclusively that the additions would invariably be made. What is required to be seen is whether the Assessing Officer has tangible material to enable him to form a belief that income chargeable to tax has escaped assessment. 4. It is undisputed that the impugned notice carries a da .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ued under section 148 of the Act is without jurisdiction. I submit that it is correct that the case records were transferred ti the answering respondent on 30.3.2015. In this regard, it is to state that the notice under section 148 of the Act was also issued to the petitioner on 303.3.2015 only. It was through oversight, the date in notice was mentioned as 25.3.2015 instead of 30.3.2015 . This fact is evident from the despatch register which shows that the notice was issued on 30.3.2015 and desp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

register presented before us by the learned counsel for the Revenue which confirms this position. Under the circumstances, we have no reason to discard the statement made by the respondent officer on oath that the notice was actually issued on 30.3.2015. 6. The second contention of the petition would receive a summary rejection. While we discuss the third contention at length, it would become clear that the issue of alleged accommodation entries received by the petitioner could not have been an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt Shah and at the residence of his key employees and associates on 9.4.2012 and subsequent days. During the course of search, it was found that SCS is engaged in providing accommodation entries of share capital, share premium, share application money, unsecured loans, Long Term Capital Gains, Short term capital gain wherein cash is received by him from various clients and against this cash, he provides accommodation entries. During the course of search documents and digital data containing date .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

navkar ; R Jhaveri ; RAJESH JHAVERI and N NAVKAR (sawacal) . These accounts contain the details of cash received from/through Rajesh Jhaveri by SCS and the accommodation entries provided there against. 1.1. On the basis of the cheque sheets, the onetime accommodation entries received in and paid through the infrastructure of Shirish Shah are complied in form of OT Party Sheets . OT Party Sheets were seized and impounded for different periods from various office premises of Shirish Shah during t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ocuments and Settings/User2/ Desktop was seized in the form of computer backup. This sheet was confronted to Shirish Chandrakant Shah during the course of his statement recorded under section 132(4) of the Act on 13.4.2013 and subsequent dates. He has offered his comments on this sheet in reply to question No.24. During the course of his statement recorded under setion 132(4) of the Act on 11.6.2013, he was provided the seized data (OT sheet upto 31.3.2012) in soft copy and requested to rework t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2 through Rajesh Jhaveri alongwith the details of the SCS companies through whom the funds have been layered are as under: Date Details Our co. Scrip Name Qty Rate Amt Comm Paid 03/02/12 Manoj C Rathod Acacia 1350000 06/02/12 Manoj C Rathod Acadia 4350000 09/02/12 Manoj C Rathod Adamin a 3000000 13.02.12 Manoj C Rathod Acacio 7,000000 15.03.12 Majoj C Rathod Acacio 3300000 15.03.12 Manoj C Rathod Acacio 2000000 1.3 Though these entries have been received through cheques/rigs from the companies c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

from th8e impounded accounts of Rajesh Jhaveri maintained by SCS in rajesh Jhaveri sheet of acl.xls(01.04.2009 to Jan,12) and n navkar sheet of bom k-r.xis 1.4. Shirish Chandrakant Shah in his statements has accepted to have provided one time accommodation entries aggregating to ₹ 1926 crores (Rs. 1500 crores for the period 1.4.209 to 31.3.2012 and ₹ 426 crores for the period 01.04.2012 to 31.3.2013). He has also provided detailed date-wise and entry-wise working of the accommodation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of funds. In both cases the investments are not genuine but, are only used to give the transactions a colour of investment. 1.5. As per the details compiled on the basis of the annexures to the statements of Shirish Shah dated 11.5.2013 and 25.11.2013, the assessee has received accommodation entries for ₹ 21,000,000.00/- during the A.Y. 20121-13 through companies managed and controlled by Shri Shirish Chandrakant Shah as under: Name of the Company of SCS(Payer) Amount of OT entry received .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ugh Rajesh Jhaveri) In certain cases other credits received in the Rajesh Jhaveri account are used to pay these OT entries. But, as no business activities are being undertaken by SCS companies, as found during the course of search on SCS and as admitted by the directors of these companies in statements/notarised affidavits and declarations, all the entries received by Manoj Chhaganlal Rathod from SCS are mere accommodation entries and non-genuine transactions, the source of which is unexplained. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Shah referred to in the reasons as SCS and residences of the employees and associates during April, 2013 it was found that SCS was engaged in providing accommodation entries of share capital, share premium, share application money etc. The revenue authorities found that SCS maintained cash and cheque sheets. Records of provided accommodation entries were also maintained by SCS which included the names of inter-mediaries also. One Rajesh Jhaveri was a close associate of SCS and various excel shee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

#8377; 2.10 crores between 3.2.2012 and 15.3.2012 from two company, namely Acacia and Adamina. It is pointed out that these entries were received from cheques from the companies controlled by SCS. However, these were mere accommodation entries against actual cash payments to SCS or against other credits. The reasons further point out the manner in which co-relation was established on the basis of seized material. In one of the statements, SCS accepted to have provided one time accommodation entr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version