TMI Blog2016 (7) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... y, genuineness of transaction and creditworthiness of the investor under Section 68 of the Act. With respect to this legal proposition, there can be no quarrel. As when the petitioner pointed out that no amount was received by the petitioner from these three companies by way of share application money, the question of applicability of legal proposition would pale into insignificance. If the Assessing Officer was in a position to rebut the petitioner's factual assertions that no funds were received from these companies by way of share application money, the issue would stand on a different footing. However, no such rebuttal has come-forth in the order disposing of the petition or even in reply filed before us in response to the present p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 31.10.2014. Yet another notice for reopening of the assessment came to be issued on 31.03.2015 which is challenged in this petition. The Assessing Officer had recorded following reasons for issuing the notice: In this case, information has been received from the ADDl. DIT (Inv.) Surat vide confidential letter no. Addl. DIT(Inv)/Praving Jain/2014-15 dated 27.02.2015 regarding bogus accommodation entries provided by Shri Pravin Kumar Jain, entry provider, through bogus concerns operated by him. As per the information provided, it is seen that Shri Pravinkumar Jain, entry operator, was engaged in providing accommodation entries to beneficiary companies. There are two types of accommodation entries provided by Shri Pravinkumar Jai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Address of the beneficiary as per books of bogus concern AABCN8176E Ansh Merchandis e P Ltd (New Planet Trading Co. P Ltd.) AACCG4726A Gujarat Eco Textile Park Pvt. Ltd. 115.00 lakhs Plot No. 252/2, Luthra Mill Compound , GIDC Pandesara , Surat AAACO7955M Casper Enterprise P Ltd (Ostwal Trading (I) P Ltd.) AACCG4726A Gujarat Eco Textile Park Pvt ltd. 100.00 lakhs Plot No. 252/2, Luthra Mill Compound , GIDC Pandesara , Surat AABCJ6245N Duke Business P Ltd. (JPK Trading I Pvt Ltd AACCG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rry out detailed investigation. Counsel submitted that the petitionercompany had never received any share application money from the said three companies. The petitioner had received loans through Account Payee cheques which were also repaid during the same accounting period. The Assessing Officer failed to respond to a specific objection raised by the petitioner in this respect. 5. On the other hand, Mr. Sudhir Mehta for the department submitted that various details were unearthed. Big scandal involving accommodation entries provided by Shri Pravinkumar Jain was unearthed by the Income Tax Department. The petitioner-company was beneficiary of receipts from the bogus companies of Mr. Pravinkumar Jain. Reopening of the assessment was, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AAACO7955M 1,00,00,000 3 Duke Business Pvt. Ltd. (Formerly JPK Trading (I) Pvt. Ltd.) AABCJ6245N 50,00,000 Total 2,65,00,000 (ii) It may be noted that in the year under consideration, the assessee company has received unsecured loan from the above 3 companies, which even stands repaid in the subsequent year by payment of interest and deduction of tax thereon and thus, there is no question of the assessee company receiving any bogus investment. (iii) Another important fact to be noted at this stage is that the unsecured loans received from the alleged 3 compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessment year in question. The Assessing Officer, while disposing of these objections, never disputed these factual assertions of the petitioner. He merely reiterated that the share capital and share premium both are credit entries in the books and are subjected to the test of identity, genuineness of transaction and creditworthiness of the investor under Section 68 of the Act. With respect to this legal proposition, there can be no quarrel. However, when the petitioner pointed out that no amount was received by the petitioner from these three companies by way of share application money, the question of applicability of legal proposition would pale into insignificance. If the Assessing Officer was in a position to rebut the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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