TMI Blog2017 (6) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter back to the file of the AO for deciding afresh after making due enquiry and also giving opportunity to cross-examine Mr. Mukesh M Choksi on whose statement the AO has made the impugned addition. - ITA No. 1504/Mum/2015 - - - Dated:- 5-6-2017 - Shri R C Sharma, AM And Shri Sandeep Gosain, JM For The Appellant : Shri Piyush Chaturvedi For The Respondent : Shri M C Omni Ningshen ORDER Per R C Sharma, Accountant Member: This is an appeal filed by the assessee against the order of CIT(A) for the assessment year 2008-09 in the matter of order passed u/s. 143(3) r.w.s. 147 of the I.T. Act. 2. In this appeal, the assessee has challenged validity of reopening as well as merit of the addition made in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 25.11.2009. As a result of search it has been unearthed that this entity has been indulged in providing bogus entries viz., share application money, speculation profit loss, short term long term capital gain loss, commodities profit loss on commodity trading (through MCX) and has been continuing this business over many years. In the course of search, from the seized computer data, a list of clients beneficiaries who have taken entries from the above said company has been extracted, which has also been forwarded along with the list. In the said list, the name of the assessee viz., Mehrauli Traders Pvt. Ltd. (PAN AAACM3556G) was also reflected and was shown to have made bogus transactions of share application money from the companies floa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement recorded u/s. 132(4) of the Act dated 25.11.2009 of Shri Mukesh Chokshi, Director of M/s. Mahasagar Securities Pvt. Ltd., in reply to Q.No.3 he has explained the modus operandi and Q.NO.40, he has furnished the names of the entities controlled by him though which he has issued accommodation entries. 7. After considering statement of Shri Mukesh Choksi, AO observed that he has been engaged in issuing accommodation entries in the name of Alliance Intermediatories and Network Pvt. Ltd., Mihir Agencies Pvt. Ltd., Mahasagar Securities Pvt. Ltd. (now known as Alag Securities Pvt. Ltd). Therefore, AO held that the assessee has taken accommodation entry to the tune of ₹ 1,02,00,000/- in respect of bogus share application money thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has fully disclosed the facts about trading in shares with the detailed notes on nature of business activities and submitted the same to the AO. Re-opening of the assessment on wrong set of facts was bad in law and was liable to be struck down. Further, once M/s Mihir Agencies and Alliance Intermediaries and Network Pvt Ltd., to whom shares were allotted have confirmed the transactions and nothing has been mentioned in the reason recorded that these companies have specifically stated that money was given back to the assessee. As such there is no link between the case of the appellant and the statement of Mukesh Choksi. So the primary condition for reopening of the assessment was that the AO must have reason to believe that the income charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and his group were engaged in bogus billing activities and in giving accommodation entries in order to enable his clients to declare Speculation profit/loss, short term/long term capital gain, profits/loss on account of commodity trading, introduce share application money or introduce money in the form of gifts. 14. As per the reasons so recorded, we are satisfied that reopening by the AO was justified since there was sufficient reason to believe that there was escapement of income in respect of alleged share application money. Now coming to the merit of addition, we find that the assessee has purchased shares from the concerns owned by Mukesh M Choksi. As per learned AR, assessee does not know either Mukesh M Choksi or any of the Direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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