Case Law Details
Naresh Manakchand Jain Vs ACIT (ITAT Mumbai)
In a recent case, Naresh Manakchand Jain faced the scrutiny of the Income Tax Appellate Tribunal (ITAT) in Mumbai. The tribunal issued a directive to the Assessing Officer (AO) to disseminate essential information regarding 32,855 beneficiaries implicated in accommodation entry schemes.
Background of the Case: Naresh Manakchand Jain, the appellant, was at the center of attention in two appeals, both related to the assessment year 2012-13. He was known for providing accommodation entries to a staggering 32,855 beneficiaries, amounting to several hundred crores.
Grounds of Appeal: The appellant raised several grounds of appeal in both cases, challenging the legality and fairness of the AO’s orders. These grounds encompassed issues related to the assessment’s validity, access to inculpatory evidence, estimation of income, mechanical addition of trade values, and the restoration of certain matters back to the AO.
The Money Laundering Operation: The appellant, Mr. Naresh Jain, was a key player in orchestrating a scheme involving the creation of bogus long-term capital gains. This operation was carried out in collaboration with various company directors, price manipulators, and exit providers. The beneficiaries of this scheme sought to legitimize their undisclosed income by converting it into long-term capital gains under Section 10(38) of the Income Tax Act.
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