SAMARTHMAL H. SHAH JAIN, MUMBAI V. ITO 19 (3)(2), MUMBAI

ITA 6487/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2088 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 13-11-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMA
• Keywords: Search and seizure; Accommodation entries
• Section: 147; 148; 132; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ITA NO.6487/MUM/2018 ( ASSESSMENT YEAR: 2008-09) SAMARTHMAL H. SHAH JAIN, M/S JAYBEE TUBE & ENGINEERING, ROOM NO. 112, 2 ND FLOOR, TULSI BIDL., KHETWADI BACK ROAD, MUMBAI-400004. VS. I.T.O.-19(3)(2), MATRU MANDIR, 2 ND FLOOR, MUMBAI-400007. PAN/GIR NO.ASUPS 8435 M (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI KUMAR PADMAPANI BORA (SR.DR) DATE OF HEARING 04/12/2019 DATE OF PRONOUNCEMENT 06/12/2019 / O R D E R PER: R.C. SHARMA, A.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 10/08/2018 OF LD. CIT(A)-30, MUMBAI FOR THE A.Y. 20 08-09 IN THE MATTER OF ORDER PASSED U/S 144 R.W.S. 147 OF THE IN COME TAX ACT, 1961 (IN SHORT, THE ACT). 2. IN THIS APPEAL, THE ASSESSEE IS BASICALLY AGGRIE VED FOR CONFIRMING THE ADDITION OF RS. 6.00 LACS MADE BY THE A.O. ON A CCOUNT OF ACCOMMODATION ENTRIES. 3. NO BODY APPEARED ON BEHALF OF THE ASSESSEE IN SP ITE OF ISSUANCE OF NOTICE. I ALSO FOUND THAT EVEN BEFORE THE LD. CI T(A), NO BODY ITA NO. 6487/MUM/2018 SAMARTHMAL H. SHAH JAIN VS ACIT 2 APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF VARI OUS OPPORTUNITIES BEING GIVEN BY THE LD. CIT(A) AS MENTIONED AT PARA 4 OF THE APPELLATE ORDER. I ALSO FOUND THAT EVEN BEFORE THE A.O., NO B ODY APPEARED ON BEHALF OF THE ASSESSEE NOR ANY DETAIL WAS FILED AS ASKED BY HIM. IN ABSENCE OF ANY RESPONSE FROM THE ASSESSEE, BEST JUD GMENT ASSESSMENT WAS FRAMED BY THE A.O. U/S 144 OF THE AC T ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 4. I HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW AND FOUND THAT A SEARCH AND SEIZURE ACTION U/S 132 OF T HE ACT WAS CARRIED OUT IN THE CASE OF M/S MAHASAGAR SECURITIES PVT. LT D. BY THE DDIT(INV.) UNIT-I(4), MUMBAI ON 25/11/2009. THE SEA RCH WAS CONDUCTED ON THE BASIS OF INFORMATION RECEIVED FROM THE FINANCIAL INTELLIGENCE UNIT, NEW DELHI REGARDING SUSPICIOUS T RANSACTIONS TAKING PLACE IN THE VARIOUS BANK ACCOUNTS OF THE ABOVE REF ERRED COMPANY AND ITS GROUPS OF COMPANIES. SHRI MUKESH CHOKSI AND SHR I JAYESH K. SAMPAT ARE THE DIRECTORS OF THESE COMPANIES. DURING THE COURSE OF SEARCH AND SEIZURE ACTION, IT WAS REVEALED BY THEM THAT M/S MAHASAGAR SECURITIES PVT. LTD. AND ITS RELATED GROU P OF 34 ODD COMPANIES (THE PROMINENT ONES BEING M/S ALLIANCE IN TERMEDIARIES & NETWORK PVT. LTD., M/S MIHIR AGENCIES PVT. LTD., M/ S GOLDSTAR FINVEST PVT. LTD. ETC. ALL RUN BY SHRI MUKESH CHOKSI AND HI S ASSOCIATES) ARE ENGAGED IN FRAUDULENT BILLING ACTIVITIES AND ARE IN THE BUSINESS OF ITA NO. 6487/MUM/2018 SAMARTHMAL H. SHAH JAIN VS ACIT 3 PROVIDING ENTRIES FOR SPECULATION PROFIT/LOSS, SHOR T TERM/LONG TERM CAPITAL GAIN/LOSS, SHARE APPLICATION MONEY, COMMODI TIES PROFIT/LOSS ON COMMODITIES TRADING (THROUGH MCX). IN THE STATEMENT RECORDED DURING THE COURSE OF SEARCH AND SEIZURE PROCEEDINGS, SHRI MUKESH CHOKSI HAS ADMITTED OF HAVING PROVIDED ACCOMMODATION ENTRIES T O VARIOUS PERSONS. IN VIEW OF THE ABOVE INFORMATION, THE CASE OF THE ASSESSEE WAS REOPENED BY ISSUING OF NOTICE U/S 148 OF THE AC T. SINCE THE ASSESSEE WAS ONE OF THE BENEFICIARIES, WHO HAS OBTA INED ACCOMMODATION ENTRIES TO THE TUNE OF RS. 6.00 LACS FROM M/S ALLIANCE INTERMEDIARIES & NETWORK PVT. LTD. IN RESPECT OF SC RIP OF MMTC. 5. IT WAS SEEN THAT IN RESPONSE TO ALL ABOVE STATED STATUTORY NOTICES THE ASSESSEE DID NOT ATTEND NOR FILED ANY D ETAILS. ACCORDINGLY ASSESSMENT WAS FRAMED U/S 144 OF THE ACT WHEREIN AF TER DISCUSSING IN DETAIL ALL THE FACTS AND CIRCUMSTANCES, THE A.O. AD DED RS. 6.00 LACS IN RESPECT OF ACCOMMODATION ENTRY OBTAINED BY THE ASSE SSEE. EVEN BEFORE THE LD. CIT(A) NEITHER THE ASSESSEE APPEARED NOR FILED ANY ADJOURNMENT PETITION IN RESPECT OF SO MANY OPPORTUN ITIES GIVEN BY THE LD. CIT(A), THEREFORE, UPHELD THE ACTION OF THE A.O .. EVEN BEFORE THE ITAT, NOTHING WAS PLACED SO AS TO PERSUADE ME TO DE VIATE FROM THE FINDINGS AND CONCLUSION OF THE LOWER AUTHORITIES. A CCORDINGLY, I DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE LO WER AUTHORITIES IN ITA NO. 6487/MUM/2018 SAMARTHMAL H. SHAH JAIN VS ACIT 4 MAKING AND CONFIRMING THE ADDITION OF RS. 6.00 LACS IN RESPECT OF ACCOMMODATION BILLS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH DECEMBER, 2019. SD/- (R.C.SHARMA) ACCOUNTANT MEMBER MUMBAI; DATED 06/12/2019 *RANJAN 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//