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02-09-2019, RKG Housing, Section 147, 148, 69C, Tribunal Delhi

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1 week 4 days ago #10687 by amit
Section - 147, 148, 69C, 68
Order Date - 02-09-2019
Favouring - Revenue
Court - Tribunal Delhi
Appellant - RKG Housing (P) Ltd.
Respondent - ITO
Justice - BHAVNESH SAINI JM
Citation - 919Taxpundit18
Appeal No. - ITA.No.1565/Del./2018
Asstt. Year - 2007-2008

Order

PER : BHAVNESH SAINI, J.M.

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-36, New Delhi, Dated 01.12.2017, for the A.Y. 2007-2008.

2. Briefly the facts of the case are that assessee company filed return of income declaring loss of Rs.537/- on 24.09.2007. The case was selected for scrutiny under section 147/148 of the I.T. Act and notice under section 148 was issued after recording reasons and getting approval of the competent authority. The reasons are reproduced in the assessment order as under :

“A search & seizure action was conducted by unit-VI(2) at the residence and offices of Sh. Surender Kumar Jain and. Sh. Virender Jain on 14.09.2010 various incriminating documents/material was seized during the course of search. During the post search investigation and perusal of seized documents it was observed that Sh Surender1 Kumar Jain and Sh. Virender Jain were engaged in the business of providing accommodation entries by providing cheques/PO/DD in lieu of cash to a large number of beneficiary companies thorough various paper and dummy companies floated and controlled by them. It was also evidently established by the wing that Sh. Surender Kumar Jain and Sh. Virender Jain are known entry providers and are the actual controllers of more than 100 companies/ Proprietary firms/partnership firms. They control these entities through various persons, by appointing them as directors/partners/proprietors apart from nominating them as authorized signatories for maintaining the bank accounts of these entities but in fact all these personsact only as their stooges. The cash received from the recipient parties for providing the accommodation entries was first deposited in the accounts of these dummy firms/companies in the disguise of the cash received against the bogus sales, duly shown in the books of accounts From there, this cash was transferred to the different paper companies floated by Sh. Surender Kumar Jain and Sh. Virender Kumar Jain through a complex trail of transactions, so as to hide the actual sources of funds of the last set of recipient companies of Sh. Surender Kumar Jain and Sh. Virender Kumar Jain.

In this way, the reserve and surpluses and the capital account of a specific set of companies are enhanced with the help of the unexplained cash received by Sh. Surender Kumar Jain and Sh. Virender Kumar Jain, which is routed to these companies through their dummy firm/companies. Once the funds of these companies have been enhanced sufficiently, accommodation entries through RTGS/ Cheque in the shape of the share capital, capital gains or loans as per the specific requirement of the recipient clients were provided them in lieu of the cash received from them. In this way, the chain for providing an accommodation, entry gets completed.

As per seized annexure, the assessee M/s RKG Housing P. Ltd. has taken the following accommodation entries from the following person (beneficiary) as per details hereunder:

Click to view and download Full Free Judgement of RKG Housing (P) Ltd. vs. ITO

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