Case Law Details
Mystic Electronics Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that in case of company is involved in providing illicit LTCG/ short term capital loss (accommodation entries), a substantial addition has to be made in the hands of beneficiaries and only a protective assessment can be made in the hands of company providing such accommodation entries.
Facts- The assessee company filed its return of income declaring total income of Rs. 31,51,330/-. Assessee filed a revised return declaring the income at Rs. 35, 48,140/-. Consequently, the case of the assessee was selected for scrutiny and a notice u/s. 143(2) of the Act.
A search and seizure u/s. 132 of the Act was carried out in the case of Raj Kumar Kedia Group. The main allegation was that it is engaged in providing various types of accommodation entries to large number of beneficiaries all over the country.
Shri R.K. Kedia in his statement admitted that the assessee company is under the control and management of Shri Krishan Kumar Khadaria of Mumbai, who is a close friend of him and is in the same business of providing accommodation entries. That booking for bogus prearranged LTCG was done through the scrip of Assessee Company.
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Author Bio
but both got monetary benifit . how can you leave main culprit