Sapna Gupta v. Income-tax Officer
[Citation -2017-LL-1117-12]

Citation 2017-LL-1117-12
Appellant Name Sapna Gupta
Respondent Name Income-tax Officer
Court HIGH COURT OF UTTARAKHAND AT NAINITAL
Relevant Act Income-tax
Date of Order 17/11/2017
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags tangible material • reopening of assessment • accommodation entries • non-existent firm
Bot Summary: The enquiry regarding bank account no.116002100028811 of Punjab National Bank, Ghaziabad was undertaken in the name of M/s Meet Enterprises, Muzaffarnagar by DDIT Investigation Unit, Dehradun. According to the report of JCIT, Dehradun, M/s Meet Enterprises was a non-existent firm. The Revenue has obtained information in respect of M/s Meet Enterprises from JDIT Dehradun, Assistant Commissioner of Commercial Tax, Haridwar and Muzaffarngar and Auditor s report. The trade tax registration number was also got verified from Trade Tax Department, Muzaffarngar and it was found that the registration number mentioned in the registration certificate submitted to the bank at the time of opening of account was related to M/s Kumar Traders, Meerut Road, Near Suzru Chungi, Muzaffarngar. On examination of purchase bills furnished by them, it was revealed that the name of seller has been mentioned as M/s Meet Enterprises TIN No.05006640257. Mr. Vikas Kumar was examined and he stated that he used to run the business of Meet Enterprises and that he only had one transaction in which he sold goods to National Trading Company, Roorkee. M/s Meet Enterprises had filed a complaint with the Assistant Commissioner of Commercial Tax, Haridwar on 16.2.2009.


Reserved Judgment IN HIGH COURT OF UTTARAKHAND AT NAINITAL Writ Petition (M/S) No.1313 of 2014 Smt. Sapna Gupta . Petitioner Versus Income Tax Officer Respondent Mr. P.R. Mullick, Adv. for petitioner. Mr. H.M. Bhatia, Standing Counsel, for Income Tax. Reserved on: 07.11.2017 Delivered on: 17.11.2017 Hon ble Rajiv Sharma , J. Petitioner was served with notice on 25.3.2014. Petitioner filed objections on 23.4.2014. Thereafter, reasons were assigned on 25.4.2014. Petitioner has laid challenge to notice dated 25.3.2014 as well as annexure no.4 dated 25.4.2014. facts necessary for adjudication of this petition are that petitioner assessee (hereinafter referred to as assessee) filed return for assessment year 2009-10 on 30.9.2009 declaring total income of Rs.5,19,760/-. assessment u/s 143 of Income Tax Act (hereinafter to be referred as Act) was completed on 27.12.2011 on total income of Rs.8,49,215/-. enquiry regarding bank account no.116002100028811 of Punjab National Bank, Ghaziabad was undertaken in name of M/s Meet Enterprises, Muzaffarnagar by DDIT Investigation Unit, Dehradun. Report was furnished on 24.5.2011 by JDIT (Inv.) Dehradun to Commissioner of Income Tax Dehradun. same was communicated vide letter 2 dated 1.11.2013 of JCIT, Haridwar Range, Haridwar. According to report of JCIT (Inv.), Dehradun, M/s Meet Enterprises was non-existent firm. It was found that during year 2008-09, relevant to assessment year 2009-10, assessee has claimed purchases to tune of Rs.1,06,80,540/- from M/s Meet Enterprises and claimed payment of Rs.73,45,040/- to M/s Meet Enterprises against these purchases. According to case of revenue, it was case of accommodation entries. assessee had escaped assessment for Rs.73,45,040/- within ambit of Section 147 of Act. Objections were raised by petitioner on 23.4.2014 and reasons were furnished on 25.4.2014. case has been reopened against petitioner. Petitioner was permitted to produce books of accounts, relevant documents etc. prior necessary approval u/s 151(1) of Act by Joint/Additional Commissioner, Income Tax was obtained. Revenue has obtained information in respect of M/s Meet Enterprises from JDIT (Inv.) Dehradun, Assistant Commissioner of Commercial Tax, Haridwar and Muzaffarngar and Auditor s report. Joint Director of Income Tax (Investigation) Dehradun sent report to CIT, Dehradun that on investigation of current account no.116002100028811 in PNB, Nehru Nagar, Ghaziabad and it was found that on 2.4.2008, instrument of Rs.30 lakh was lodged in clearing and realized. very next day, Rs.29.97 lakh were withdrawn in cash from this account. In opening form, proprietor of M/s Meet Enterprises is Sunil Kumar S/o Lala Ram, R/o Muzaffarnagar. It was discovered from local enquiry that he was driver employed by one Puskar Tyagi R/o Shalimar Garden, Ghaziabad. M/s Meet Enterprises was incorporated on 25.5.2004 and address was Plot no.065, Pocket B-6, Sector-3, Rohini, 3 New Delhi. It had two directors namely, Anil Kumar Jain and Ankur Jain. Summons were issued to Pushkar Tyagi and Arishthemi Steels to find out real beneficiary of this bank account. Summons were not complied with. trade tax registration number was also got verified from Trade Tax Department, Muzaffarngar and it was found that registration number mentioned in registration certificate submitted to bank at time of opening of account was related to M/s Kumar Traders, Meerut Road, Near Suzru Chungi, Muzaffarngar. parties who had issued cheques were examined to find out business transactions. On examination of purchase bills furnished by them, it was revealed that name of seller has been mentioned as M/s Meet Enterprises TIN No.05006640257. Enquiries were also made from Trade Tax Department. It was revealed that proprietor of this firm is Mr. Vikas Kumar. Mr. Vikas Kumar was examined and he stated that he used to run business of Meet Enterprises and that he only had one transaction in which he sold goods to National Trading Company, Roorkee. He specifically stated that he had no bank account except S/B No.033000100362580 in PNB, New Mandi, Muzaffarnagar. It was not established that purchases were made from M/s Meet Enterprises on basis of bilties etc. cheques issued by assessee and deposited in fake firm at Ghaziabad were accommodation entries. bogus bills were prepared in name of firm. M/s Meet Enterprises had filed complaint with Assistant Commissioner of Commercial Tax, Haridwar on 16.2.2009. It was detected during assessment that assessee has falsely fabricated and claimed input VAT to tune of 4 Rs.6,45,198/- on certain purchase transactions. Commercial Tax Authorities detected that assessee has fabricated purchase invoices of three vendors thereby increasing its purchase bill by over Rs.2,44,69,640/-. invoices were rightly rejected and disallowed. fabricated invoices pertained to M/s Meet Enterprises for Rs.1,06,80,540/-, M/s R.K. Traders for Rs.92,27,400/- and M/s Bharat Trading Co. for Rs.45,61,700/-. Assessing Officer had initiated proceedings on basis of tangible evidence to reopen assessment u/s 147 of Act. order dated 25.4.2014 is detailed and reopening of case is justified on basis of material placed on record. Accordingly, there is no merit in this petition and same is hereby dismissed. (Rajiv Sharma, J.) Rdang Sapna Gupta v. Income-tax Officer
Report Error