NEW LIFE MARKETING & TRADING P. LTD, MUMBAI V. ITO 4(3)(1), MUMBAI

ITA 5423/MUM/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2091 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 10-03-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 29-08-2012
• Court: TRIBUNAL
• Assessee Lawyers: H S RAHEJA
• Keywords: Search and seizure

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA , A M & SHRI SANDEEP GOSAIN , J M ./ ITA NO . 5423 / MUM/20 1 2 ( / ASSESSMENT YEAR : 20 0 4 - 20 05 ) NEW LIFE MARKETING & TRADING PVT. LTD., 158/164, LAXMI BHAVAN, 4 TH FLOOR, KALBADEVI ROAD, MUMBAI - 400002 VS. ITO - 4(3)(1), MUMBAI ./ ./ PAN/GIR NO. : A A AC N 1664 L ( / APPELLANT ) .. ( / RESPONDENT ) / ASSESSEE BY : SHRI H.S.RAHEJA /REVENUE BY : SHRI AARSI PRASAD / DATE OF HEARING : 15 / 09 / 2015 / DATE OF PRONOUNCEMENT 30/11 /2015 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), DATED 9 - 7 - 2012 FOR THE ASSESSMENT YEAR 200 4 - 05 , IN THE MATTER OF ORDER P ASSED U/S.143(3) R.W.S.147 OF THE I.T.ACT . 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR ADDITION OF RS. 1,77,190/ - U/S.69 OF THE A CT AS SUSTAINED BY THE CIT(A) . THE ASSESSEE IS ALSO AGGRIEVED FOR REOPENING OF THE ASSESSMENT. 3. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE COMPANY HAS PURCHASED THE SHARES FROM ALLIANCE INTERMEDIA TERIES & NETWORK PVT. LTD. FOR A TOTAL CONSIDERATION OF RS. 2,24,335/ - . A SEARCH AND SEIZURE ACTION U/S.132 WAS CONDUCTED IN THE CASE OF MAHASAGAR SECURITIES PVT. LTD. AND ITS RELATED ITA NO. 5423 /M/1 2 2 GROUP. DURING THE COURSE OF SEARCH AND SEIZURE IT WAS REVEALED THAT THE GROUP WAS ENGAGED IN FRAUDULENT BILLING ACTIVITIES AND IN THE BUSINESS OF PROVIDING BOGUS BILLS OF PURCHASE AND SALE OF SHARES. THE ASSESSEE COULD NOT EXPLAIN THE GENUINENESS OF THE TRANSACTION OF PURCHASE FROM THE ABOVE CONCERNS OF MAHASAGAR SECURITIES PV T. LTD. , ACCORDINGLY THE AO ADDED THE SAME U/S.69 OF THE ACT. 4. BY THE IMPUGNED ORDER THE CIT(A) RESTRICTED THE ADDITION TO THE EXTENT OF RS.1,77,242/ - , AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. WE HAVE CONSIDERED RIVAL CONTENTIONS A ND FOUND THAT ADDITION WAS MADE ON THE BASIS OF SEARCH AND SEIZURE ACTION U/S.132, WHEREIN THE STATEMENT WAS RECORDED AND IT WAS ESTABLISHED ON RECORD THAT TRANSACTION ENTERED BY THE ASSESSEE WITH THESE PARTIES WERE BOGUS TRANSACTION AND ONLY ACCOMMODATION ENTRY. THE DETAILED FINDING RECORDED BY THE AO AND CIT(A) HAS NOT BEEN CONTROVERTED BY THE ASSESSEE BY BRINGING ANY POSITIVE MATERIAL ON RECORD. ACCORDINGLY, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A) IN RESTRICTING THE ADDITION TO THE EXTENT OF RS. 1,77, 242 / - . 6. SO FAR AS REOPENING IS CONCERNED, WE FOUND THAT AFTER RECORDING DETAILED REASON S THE AO CAME TO THE CONCLUSION THAT THERE IS ESCAPEMENT OF INCOME IN RESPECT OF BOGUS TRANSACTION ENTERED BY THE ASSESSEE. ACCORDINGLY, THERE IS NO INFIRMITY IN THE ACTION OF AO FOR REOPENING OF THE ASSESSMENT. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ITA NO. 5423 /M/1 2 3 O RDER PRONOUNCED IN THE OPEN COURT ON THIS 30/11 / 201 5 . SD/ - SD/ - ( SANDEEP GOSAIN ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 30/11 /201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//