GOLDSTAR METAL SOLUTIONS PRIVATE LIMITED,MUMBAI vs. ASST. COMMISSIONER OF INCOME TAX CIRCLE-9(3)(2),MUMBAI, MUMBAI

Summons was issued to the concerned bank for relevant bank statements. On\nanalysis of the bank statements it is observed that the funds so received in the\naccounts were immediately disappeared to other account through RTGS/transfer.\nNumber of summons and queries were made with the concerned bank as the\nnarration i.e. incoming and outgoing entries were not being maintained properly\nthat resulted many hindrance to make the trail to find out the ultimate beneficiaries.\nAbout hundreds of accounts are linked to one another. The following bank accounts\nare found to be involved which were used as a conduit either to transfer the fund to\nthe beneficiaries in the guise of loan/advance/share_capital or to provide\naccommodation entry or otherwise.\n2.3.\nOut of the above, as per database of entry operator, it is seen that the above\nmentioned companies have already been identified as shell companies during various\nsearch and survey operation conducted by the investigation wing from which funds\nare reaching to the accounts of beneficiaries directly or through other paper\ncompanies or have been used for providing accommodation entry.\n2.

On going through the above bank accounts statement, it is observed that the\npattern of transaction is of same as layering of funds through multiple conduits\nhaving no genuine business activities, no other nature of transactions have been\nfound other than just transferring the fund on the very same day or next day leaving\nvery negligible balance in the account. Most of the companies are sharing same\naddress with common directors. On scrutinising the bank statement fund trail has\nbeen prepared for the F.Y. 2011-12 that leads to the ultimate beneficiaries of around\n39.00 crores are enclosed as per Annexure A and Annexure B. The entire fund trail\nshowing ultimate fund transfer to all these beneficiaries is enclosed in a CD with this\nreport.\n3.\nIn this case, information was also received from the office of DDIT (Inv.),\nUnit-4(3), Mumbai vide letter dated 15.03.2019 which is as under:\n3.

On verification of information received in the case of Shri Prem Sarodi, it was\nfound that amount of Rs.100 lakhs was credited to the account of Plastica Industries\n(A/c No. 698705111904 in ICICI Bank Ltd.) from the account of Mr. Prem Sarogi\n(A/c No. 698701005033 in ICICI Bank Ltd.). Mr Prem Sarogi has got the RTGS\nfrom Goldstar Metal Solutions Pvt. Ltd. (A/c No.698705112277 in ICICI Bank\nLtd.). On the same day, Rs.100 lakhs were transferred from the account of M/c\nVidarbha Minina Pvt. Ltd. (A/c No. 698705112857 in ICICI Bank Ltd.) to the\naccount of Goldstar Metal Solutions Pvt. Ltd. (A/c No. 698701005033 in ICICI\nBank Ltd.). From the account of Mis Vidarbha Mining Pvt. Ltd. (A/c No.\n698705112857 in ICICI Bank Ltd.) transferred to the account of Mr. Prem Sarogi\n(A/c No. 698701005033 in ICIC/ Bank Ltd.). Again, on the same day Rs.100 lakhs\nwas transferred from Mr. Prem Sarogi (A/c No. 698701005033 in ICICI Bank Ltd.)\nto M/s Vidarbha Mining Pvt. Ltd. (A/c No. 698705112857 in ICICI Bank Ltd.).\"\nआयकर अपीलीय अधिकरण\nINCOME TAX APPELLATE TRIBUNAL\nI.T.A. No. 1266/Mum/2024\n \n4\n4.\nThe entire quarrel revolves around two pieces of information.\nFirst, received from the office of the DDIT(Inv.), Unit-2(3), Kolkata by\nwhich the AO came to know that the parties mentioned hereinabove are\nengaged in providing accommodation entries and the second\ninformation was that Mr. Prem Sarogi received Rs.100 Lakhs from\nGoldstar Metal Solutions Pvt. Ltd., and Goldstar Metal Solutions Pvt.\nLtd. received from M/s. Vidarbha Mining Pvt. Ltd. and Mr. Prem\nSarogi received from M/s. Vidarbha Mining Pvt. Ltd. and again Rs.100\nLakhs was transferred from Mr. Prem Sarogi to M/s. Vidarbha Mining\nPvt. Ltd.\n5. We have given a thoughtful consideration to the reasons for\nreopening the assessment mentioned hereinabove. Insofar as the first\ninformation from DDIT (Inv.), Unit-2(3), Kolkata is concerned, the seven\nparties mentioned therein have nothing to do with the assessee nor\nthere is any mention of any transactions between the said parties and\nthe assessee. The second information does not make any sense as the\nOfficer himself is mentioning the transfer of money from one account to\nanother thereby explaining himself the identity and the source of the\ncreditor. We fail to understand how the AO can allege that income has\nescaped assessment on such information for making addition u/s 68 of\nthe Act when the alleged second information is self-explanatory and\nnone of the parties mentioned in the second information are\naccommodation entry provider. They are all related parties and the\ntransactions are between the related parties.\n6.\nOn the given facts as discussed hereinabove, we do not find any\nmerit in the reopening of the assessment. We accordingly set-aside the\nआयकर अपीलीय अधिकरण\nINCOME TAX APPELLATE TRIBUNAL\nI.T.A. No. 1266/Mum/2024\nI.T.A. No. 2084/Mum/2024\n5\nimpugned notice u/s 148 of the Act thereby quashing the resultant re-\nassessment order. Since we have quashed the re-assessment order, we\ndo not find it necessary to delve into the merits of the case.\n7.\nIn the result, both the appeals of the assessee are allowed.\nOrder pronounced in the Court on 13th June, 2025 at Mumbai.\nSd/-\n(SAKTIJIT DEY)\nVICE PRESIDENT\nSd/-\n(NARENDRA KUMAR BILLAIYA)\nACCOUNTANT MEMBER\nMumbai, Dated 13/06/2025\n*SC SPS\nआदेश की प्रतिलिपि अग्रेषित/