TMI Blog2023 (11) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... details of 25 parties confirming the copies of the accounts of the Directors and Shareholders from whom such loans were taken was attached. What is therefore evident from perusal of the material and the disclosure of income and the questions which were asked and respondend to by the petitioner in the scrutiny assessment would indicate that there was ample justification brought out by the petitioner in the context of unsecured loans. Perusal of the reasons would indicate that except making a statement that the petitioner had an access with Shri Kamal Zaveri and that the tainted concerns, namely, Jay Traders and Shubham Enterprise were conduits for securing unsecured loans. No material came forth in terms of any statement or details to pin-point a live link or a nexus of the petitioner with the transaction in question. Apparently, the reasons were suggesting that it was a case where the revenue merely entered into a roving and fishing inquiry without any material on record. It was merely based on suspicion, especially when the exercise has been undertaken in light of the scrutiny assessment so done. There was no tangible material so as to come to a conclusion or reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pearing with Ms.Vaibhavi Parikh, learned counsel for the petitioner, would make the following submissions:- 4.1 Taking the Court through the reasons for reopening, Mr.Hemani, learned Senior Counsel, would submit that it was a case of reopening beyond a period of four years. Reading the reasons would indicate that they lacked validity. It was the case of the revenue that by virtue of an investigation carried out in the case of Shri Kamal Jayantilal Zaveri and on examination of material, it was found that the assessee company i.e. the petitioner was the beneficiary of accommodation entries in the form of unsecured loan given to the assessee company. He would submit that the petitioner has neither received any loans from the two concerns, namely, M/s. Jay Traders and M/s. Shubham Enterprise, nor does he know Mr.Kamal Zaveri. The reasons for reopening, therefore, lacked validity. 4.2 Mr.Hemani, learned Senior Counsel, would submit that neither any statement of Mr.Zaveri, nor a declaration dated 08.05.2015, nor any details of the Assessment Order were supplied to the petitioner so as to explain how the transaction mentioned in the reasons for reopening had any linkage or nexus wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestigation Wing, Surat through ITO, Ward-1(3)(7), Surat. A survey action u/s. 133A of the I.T.Act was undertaken by Investigation Wing, Surat in the case of Shri Kamal Jayantilal Zaveri, Prop. Of M/s. Rishit Corporation on 24.03.2015. Shri Kamal Jayantilal Zaveri was engaged in the business of providing of Bogus bill entries and accommodation loan entries on commission basis. Shri Kamal J. Zaveri as well as associated persons has been examined on oath and all such persons have admitted to have been actively involved in giving accommodation entries. Shri Kamal J. Zaveri filed a declaration on Rs.100/- Stamp paper on 08.05.2015 stating that he was engaged in the business of accommodation entries through bogus bills and given fictitious unsecured loans to the different parties and he reiterated these facts given earlier by him in his statement during the course of survey at his residence on 24.03.2015. During the course of post survey enquiries, list of beneficiaries of bogus entiries of various parties of Surat and other places have been prepared and intimated to the concern AO. 2.1 Further, durig the reassessmet proceedings u/s. 147 of the Act in the case of Shri Kamal J.Z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After perusal of statement statements / declaration of Shri Kamal J. Zaveri, Prop. M/s. Rishit Corporation and report of the Investigation Wing, Surat, it is confirmed that the assessee company M/s. Bhagwati Polyfill Pvt Ltd has received accommodation entry from M/s. Jay Traders and M/s. Shubham Enterprise proprietorship concern of Shri Kamal J. Zaveri (bogus commission agent, who provides accommodation entries) during the F.Y. 2011-12 relevant to A.Y. 2012-13. This transaction is bogus transaction because it is clearly proved that the assessee M/s. Bhagwati Polyfil Pvt Ltd. Had taken accommodation entry from the said tainted concerns during the year under consideration, thereby reduce its tax liability as well routing its own unaccounted money by way of unsecured loan through Shri Kamal J. Zaveri. 6.2 Perusal of the record would indicate that the petitioner s case was selected for scrutiny and the issue as to unsecured loans was considered threadbare. The statement of audit produced in Form 3CA and 3CD together with the petition indicated that the company accepted unsecured loan from Directors / Shareholders of the company and relatives, names thereof were listed in their sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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