Tas Holdings Pvt Ltd v. Income Tax Officer

order. No substantial question of law arises. This dismissed. appeal is accordingly assessee to nurture grudge against such an tft* (h.K. SIKRI) JUDGE a .-2 c-(,4^tln1, (lvt.l-. MEHTA) JUDGE nlicusr 24,zoLL. skb

IN THE HIGH COURT OF DELHI AT NEW DELHI rTA 805 0F 20Ll- + % M/S TAX HOLDINGS PVT. LTD' Through: Mr. VERSUS COMMISSTONER OF INCOME TAX Through: Mr. j. tonau ,- , tudoment Delivered On: 24.8.2077 ....APPELLANT Kanan Kapur, Advocate. . ..RESPONDENT Deepak Chopra, Advocate. HON',BLE MR. JUSTICE A.K' SIKRI HON'BLE MR. JUSTICE M.L'MEHTA 1. Whether Reporters of Local newspapers may be allowed to see the Judgment? 2. To be referred to the Reporter or not? 3. Whether the Judgment should be reported in the Digest? A.K. SlKRl, | (Oral) 1. ' This appeal impugns the order dated 31't January, 20II passed by the lncome-Tax Appellate Tribunal whereby the Tribunal has remanded the matter back to the file of the Assessing Officer for his fresh adjudication. The issue pertains to the addition made by the Assessing officer under Section 68 of the Income-Tax Act (hereinafter referred to 'the Act'). However, according to the Tribunal some more Certify that the digital file and physical file have been compared and the digital data is as per the physical file and no page is missing. n investigation is needed which resulted in restoring the case back toQK Assessing Officer. 2. Brief facts under which precise issue has arisen for consideration are noted hereinafter. The assessee is a private limited company. For the assessment year 2002-03 it had filed its return of income on l8th September 2002 showing business loss of { 5,00,000/-. This return was accepted as it *.,j5.However, the Assessing Officer subsequently received certain -s_ information from the ADI (lnv.) of the Department inter a/ia stating that a survey was conducted under Section 133A of the Act at the office premises of one Sh. sanjay Rastogi at 2ro, Vakil chamber, A-115, Shakarpur, Delhi on 4th March, 2003. The said survey revealed that Mr. Rastogi and his associates were giving accommodation entries on large scale to various companies. lt was noticed by the Department a that this activity of giving accommodation entries or bogus entries was .-,being carried out through bank accounts in different banks at Delhi and outside. Statement of Mr. Rastogi was also recorded on 20th April, 2003 under Section 131 of the Act wherein he had admitted the aforesaid facts. He also admitted that apart from the professional work, he was also providing certain services in connection with the rTA 805/11 companies/concerns/entities that were not doing the real or genuine business and for that purpose, he has given his address at 210 Vakil Chamber, Vikas Marg, Delhi. Mr. Rastogi flouted certain companies which were used as conduit for providing accommodation entries or transactions, which were not real in nature. During further investigation it was found that the assessee company was also one of the beneficiaries of the bogus entries taken from one Ms/ Frenzy Products Pvt. Ltd. flouted by Shri Rastogi, from its account No.205, Corporation Bank Laxmi Nagar, Delhi. )-;1 In other words, information was received by the department that M/s Frenzy Products from its account No. 205, Corporation Bank, Laxmi Nagar, Delhi provided accommodation entries to the assessee Company. The details of the entries are as under:- a Date particulars of cheque 31.5.2001 ChequeNo. 0159426 6.10.2001 Cheque No. 0159446 j" Amount paid t 4,00,000 T 4,50,000 Total: t 8,50,000 said information and copy of survey report Officer, he issued notice dated 16th August, of the Act and recorded his 'Reasons to il 3. On the received by 2004 under basis of the the Assessing Section l48 Believe' that income to the extent of T 8.50 lacs had escaped assessment. Pursuant to the said notice, the assessee filed its return maintaining the original return wherein it had shown the business loss of t53,6401-. During the course of reassessment proceedings, it was noticed by the AO that the assessee had shown receipt of share gpplication money amounting to t9,60,000/- out of which Rs, 8,50,000/- was received from Ms/ Frenzy Products Pvt, Ltd. Notice under Sec