DCIT Vs KCJ Buildtech Pvt. Ltd. (ITAT Delhi)
The brief facts leading to this case is this that the assessee before us filed its return of income under section 139(1) of the Act on 26.09.2012 declaring income at Rs.5,883/-. Subsequently, a search under section 132 of the Act was carried out in the case of Anand Kumar Jain and Naresh Kumar Jain (Jain Group) on 17.12.2015, wherein various documents/books of account were found and seized. Upon examination of those seized materials, it was found that the said Anand Kumar Jain and Naresh Kumar Jain were engaged in the business of providing accommodation entries to various beneficiaries through various dummy/paper companies including the assessee company controlled and managed by those Jain brothers in order to provide accommodation entries to such beneficiaries in lieu of cash received by them and after relating the cash money from one company to the other and so on. It was further found by the Revenue that the Bank accounts of those companies were also managed and controlled by those Jain brothers.
As the assessee was found to be one of those paper companies of Jain brothers, on the basis of the entries in the coded name of the assessee found in the seized documents being Annexure No.13, Tally Data (Hard Disk) ledger name AJ and AJ1, satisfaction note was recorded by the Learned AO of the searched person and also by the Learned AO of the person other than the searched person notice under section 153A/153C of the Act was issued on 28.03.2018 directing the assessee to file return of income within 15 days from the date of receipt of the said notice. However, since nothing was forthcoming, further notice dated 20.09.2018 was served upon the assessee by affixing on the premises of the assessee. However, since no compliance was made by the assessee, the reassessment proceeding was finalized upon making addition of Rs.2,22,96,490/-, the amount credited in the Bank account of the assessee received from shell/paper concerns and from various beneficiaries of accommodation entries upon treating the same as unexplained entries and added to the total income of the assessee under Section 68 of the Act as assessee’s income from undisclosed sources on protective basis. It was further mentioned in the said order that substantive addition to be made in the hands of the beneficiaries. The said order was passed by the Learned AO on 26.12.2018.
