M/S. A S C ENGINEERS PRIVATE LIMIED ,MUMBAI vs. INCOME TAX OFFICER WARD, -15(1)(1), MUMBAI
Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI
Before: SHRI OM PRAKASH KANT () & SHRI RAJ KUMAR CHAUHAN () Assessment Year: 2014-15
This appeal by the assessee is directed against the order dated 14.05.2024 passed by the National Faceless
Appeal Centre (in short the ‘NFAC’) for AY 2014-15, raising following grounds :
“Grounds of appeal:
11. The Learned CIT(A), has erred in confirming the validity of reopening proceedings under section 147/148
of the issued believe"
reliance under s
M/s AB to believ
It is sub initiated any inc issued
Consequ of purc hypothe
5,08,17
deleted.
The brief fa assessee filed a total incom scrutiny and Income-tax A 18.12.2016 a 3. Subseq Investigation that the ass M/s. A Act whereas the notice under sect by Learned AO without assigning an ". Your Appellants submits that reop e on statement of unconnected perso section 131(1A) during investigation p BN Trade Link Pvt Ltd cannot be treate ve' under section 148 of the Income Ta bmitted before Your Honor that reass d based on conjectures and surmises criminating material on record, therefo under section 148 be treated as uently, additions proposed towards e chases amounting to Rs 25,40,8 etical addition of commission amo 72, this being 0.20% of purchases, be .” acts, as emerging from the reco d its return of income on 29.11 me of ₹2,68,210/-. The return w d assessment under section Act, 1961 (“the Act”), which wa accepting the returned income. quently, information was rece Wing of the Income-tax Depart sessee had allegedly obtained 2 S C Engineers Private Limited tion 148 was ny "reasons to pening placing on summoned proceedings of ed as 'reasons ax Act. sessment was s and without ore, the notice bad in law. entire amount 86,231/- and unting to Rs ordered to be ord, are that the 1.2014 declaring was selected for 143(3) of the as completed on eived from the tment indicating accommodation purchase en shell entity, information, to believe th assessment accordingly i 31.03.2021. response to notices issue was complete 4. In app notices issu (NFAC) on 1 NFAC, there material avai 5. Before that the noti due to techn resulting in i CIT(A). It wa granted to en furnishing th
M/s. A ntries amounting to ₹25,40,86
M/s ABN Trade Link Pvt. Ltd.
the Assessing Officer (“AO”) re hat income chargeable to tax to the extent of the aforesai issued notice under section 14
The assessee did not file the notice nor complied with ed by the AO. Consequently, ed ex parte under section 144 of peal, the assessee similarly did ed by the National Faceless
14.06.2023, 10.04.2024 and 1
efore, disposed of the appeal ilable on record.
us, learned counsel for the asse ces issued by the NFAC could nical issues with the assessee’s its inability to represent the m as prayed that one final oppo nable the assessee to substanti he requisite documents.
3
S C Engineers Private Limited
6,231/- from a Relying on this ecorded reasons x had escaped id amount and 48 of the Act on any return in the subsequent the assessment f the Act.
not respond to Appeal Centre
8.04.2024. The based on the essee submitted not be accessed e-mail account, matter before the ortunity may be iate its claim by 6. We ha the mater dismissing inter alia, a “7.6 In Investig accomm from th enquiry no such address filed by conclusi associat
Consulta
Ltd. M/s
Trading conduit both sa revealed
Limited
Jani. It was ass was als
Investig and ban under:
a. The a an acco sales as b. The c
Link Pr
0.2% of M/s. A ave heard the rival submissions rial placed on record. The the appeal, has recorded de as follows::
n this case information was receiv gation Wing that the assessee firm ha modation entry to the tune of Rs.25
he shell company M/s ABN Trade L carried out by the Investigation Wing h company was operating either from s or from the address shown in the y the assessee. Detailed enquiry ion that M/s. ABN Trade Link Lt ted companies viz. M/s. Dgains ancy Pvt. Ltd., M/s. Aspire Steel & En s. Radiance Multitrading Pvt. Ltd and Pvt. Ltd. were used by one Shri Nir for providing accommodation entries ales as well as purchase entries. T d that the entity M/s ABN Trade was being handled by one CA named was further ascertained that Shri sisted by a person named Shri Amit so untraceable. The statements were gation wing under oath and the analys nk statements led to clear findings w assessee M/s. AB Trade Link Private ommodation entry provider and was p s well as purchase entries.
charge / commission received by Mi rivate Limited for the entries provide the value of entry.
4
S C Engineers Private Limited s and examined
NFAC, while etailed findings, ved from the ad received an 5.40,86,231/-
Link Ltd. The g revealed that its registered e latest return lead to the td and other
Marketing N ngineering Pvt.
M/s. Tanishq rbhay Jani as in the form of The enquiries
Link Private d Shri Nirbhay
Nirbhay Jani
Sheth and he e recorded by sis of the data which were as e Limited was providing both is. ABN Trade ed by it was c. There group a (1) AB and Co
Enginee
Private L d. Thus
Limited, accomm sales a stateme investig and the order.
e. The b the book tax. The 7.7 A pe by the A assesse
Rs.79,9
as one provided establis had be reasons repetitio by the assesse above purchas establis commiss
M/s. A e were five such entities which belong and were providing the entries. These
Trade Link Private Limited, (ii) Dgai onsultancy Private Limited, (iii) Aspi ering Private Limited, (iv) Radiance
Limited and (v) Tanishq Trading Priva s, the assessee M/s. ABN Trade
, along with four other group enti modation entry provider and was p as well as purchase entries. The ents, recorded on oath during th ation, were also relied upon by the A.
e relevant extracts have been repro bogus purchase entries led to inflated ks of the beneficiaries and consequen e assessee ASC Engineers was one of erusal of the return of income filed for A.O in the case of the assessee sho ee had effected a total pu
0,76,703/-The name of the above ass e of the beneficiaries of accommo d through ABN Group companie hed that entries amounting to Rs.25
een received from entry providers s as given in para 6 of the order whic on. Thus on the basis of all the evide assessee there cannot be any do ee had availed of accommodation e extent since the parties from ses/sales were made were con hed entry providers.
The A.O sion @.20% of Rs 5,08,172/-.
5
S C Engineers Private Limited ed to the ABN e entities were ins Marketing ire Steel and e Multitrading ate Limited
Link Private ities, was an providing both incriminating he course of O in this case oduced in the d purchases in tly, evasion of f them r A.Y. 2014-15
owed that the urchases of sessee figured odation entry es. The A.O
5,40,86,231/- for detailed ch do not bear ence adduced oubt that the entries to the whom the nfirmed and also added
However service prevente the appe assessee explanat 8. In the assessee consider CIT(A) a shall adj challeng proceedi after aff assessee comply authorit 9. With th allowed Order pron (RAJ KUMA JUDICIA M/s. A r, learned counsel has explai of notices on the correct ed the assessee from effectively ellate proceedings. It is now sub e is willing to place all relevant tions on record. interest of justice and to en e is not denied a fair opportunit r it appropriate to set aside th and restore the matter to his judicate all grounds afresh—inc ge to the validity of the ings as well as the additions m fording due opportunity to the e is directed to extend full c with all notices issued by ty without fail. ese directions, the appeal of for statistical purposes. nounced in the open Court on d/- AR CHAUHAN) (OM PRA AL MEMBER ACCOUNT 6 S C Engineers Private Limited ined that non- e-mail address participating in bmitted that the documents and nsure that the ty of hearing, we he order of the file. The CIT(A) cluding the legal reassessment ade on merits— e assessee. The cooperation and the appellate the assessee is n 15/12/2025. AKASH KANT) TANT MEMBER
Mumbai;
Dated: 15/12/2025
Tarun, Sr. P.S..
Copy of the Order fo
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumb
5. Guard file.
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M/s. A orwarded to :
.
bai
BY OR (Assistan
ITAT
7
S C Engineers Private Limited
RDER, nt