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DCIT, Circle 12 (1) , New Delhi Versus M/s. Gee Diamond Steels (P) Ltd., C/O S. Kumar Jain & Associates

2017 (9) TMI 663 - ITAT DELHI

Reopening of assessment - Addition u/s. 68 - Investigation made by the Investigation Wing of the Department to conclude that nothing but a sham transaction of accommodation entry - Held that:- As the assessee remain non-cooperative before the AO and did not file requisite documents before the AO, thus the entry remains unexplained in the hands of the assessee and also no independent inquiry has been undertaken by the AO in the instant case and AO has mainly relied upon the Investigation Wing Rep .....

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resaid directions. Appeal filed by the Revenue stands allowed for statistical purposes. - ITA No. 5154/DEL/2012 - Dated:- 11-9-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For The Department : Sh. Arun Yadav, Sr. DR For The Assessee : None ORDER PER H.S. SIDHU, JM : This appeal by the Revenue is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XV, New Delhi dated 03.7.2012 pertaining to Assessment Year 2002-03 on the following grounds:- .....

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(hereinafter referred as the Act). Thereafter, a notice u/s. 148 of the Act was issued in the case of the assessee on 31.3.2009 after duly recording the reasons for reopening and after taking the necessary approval. As per the provisions of the aforesaid notices, the assessee was required to file a return of income within 30 days of the service of such notice. The assessee, vide its letter filed on 09.09.2009, has stated that the return originally filed may be treated to have been filed in resp .....

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which is factually wrong. The satisfaction recorded by AO during the reopening of assessment is that I have gone through the report and associate record on the basis of the same / have reason to believe that undisclosed income to the tune of ₹ 11383772/- for A. Y 2002-03 has escaped assessment". Therefore, the objection of assessee company is disposed off as objection was not based on facts. However, the assessee has not furnished any details whatsoever despite a number of opportunit .....

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rnished any evidence whatsoever in this regard. Thus entry remains unexplained in the hands of the assessee as has been arrived by the Investigation wing of the Department. As such entries of ₹ 1,13,83,772/- received by the assessee are treated as an unexplained cash credit in the hands of the assessee and added to its income and accordingly assessment order passed u/s. 143(3)/148 of the Act by assessing the income of the assessee at ₹ 1,13,92,022/-. Against the assessment order, the .....

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its authorized representative appeared to prosecute the matter in dispute, nor filed any application for adjournment. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, we are of the view that no useful purpose would be served to issue notice again and again to the assessee, therefore, we are deciding the present appeal exparte qua assessee, after hearing the Ld. DR and perusing the records. 5. We have heard the Ld. DR and perused the re .....

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e received from Ayushi Stock Broker (P) Ltd a ₹ 1,13,83,772/- but factually the transactions on 19.06.2001 is of ₹ 6,00,000 and not ₹ 60,00,000 (as mentioned by the Investigation Wing), therefore the AO has wrongly added the amount of ₹ 1,13,83,772. 7.1. It is seen from the perusal of balance sheet as on 31.03.2001 (i.e. prior to the year under consideration) which is filed alongwith the return of income for Assessment Year 2001-02, the appellant had made various investme .....

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ccount of these sale of shares through Ayushi Stock Brokers (P) Ltd. the appellant in the year under consideration received, ₹ 59,83,772 the information of which was made available to the AO from the Investigation Wing at ₹ 1,13,83,772 as the sale on 19.06.2001 which was actually for ₹ 6,OO,OOO but wrongly taken by the Investigation Wing for Rs..60,00,000. 7.2 It is also worth mentioning here that Ayushi Stock Broker is assessed to tax and has a PAN NO.AADCA0825F and in support .....

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nd made addition under Section 68. 7.3 The appellant further submitted the broker's note and bank statement of Ayushi Stock Brokers (P) Ltd. evidencing the transfer of funds on account of sale of shares through them and claiming that the said transaction is a genuine business transaction. From the perusal of the assessment order and the assessment folder and from the facts available on record, it is seen that no notices or enquiry have been done by the AD in respect of the transaction the ap .....

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urther also I find that no material has been brought on record by the AO as to under what circumstances, the business transaction by the appellant is not a genuine transaction. I find that AO has blindly relied on the information received from the Investigation Wing and AO has not brought any material or evidence on record which can prove that the said money was appellant's own undisclosed income. 7.6 In the light of the above discussion, I am inclined to agree with the arguments and evidenc .....

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, 1961. 8. In the result, appeal is partly allowed. 6. On going through the aforesaid findings of the Ld.CIT(A) as well as the finding of the Assessing Officer made in the assessment order, we find that AO has passed the assessment order u/s. 143(3)/148 of the Income Tax Act, 1961 by holding that Investigation made by the Investigation Wing of the Department clearly shows that this was nothing but a sham transaction of accommodation entry. He further held that the transactions were routed throug .....

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