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“entry operator”

Cash Credits & Unexplained ItemsSection 68Section 682,071 judgments

The decision most relied on for entry operator is CIT v. Jamnadevi Agarwal (328 ITR 656), cited in 230 judgments on BharatTax.

Leading authorities on entry operator

CIT v. Jamnadevi Agarwal
328 ITR 656 · 2010 · High Court
230
citing judgments

When faced with allegations of bogus long-term capital gains from penny stocks, the Assessing Officer must discharge the onus of proving that the assessee's transactions were not genuine. The assessee can rely on the principle of preponderance of probability, and the Revenue must present substantial evidence to establish that the transactions were a colourable device or that the assessee was an entry operator.

ITO, 19(3) (4) Mumbai v. Shamim M Bharwani
69 Taxmann.com 65 · 2016 · Reported
142
citing judgments

Long Term Capital Gains (LTCG) from penny stock transactions are liable to be treated as bogus and added back under Section 68 as unexplained cash credits, especially when evidence suggests the involvement of entry operators providing accommodation entries.

5. PCIT v. Paramount Communication (P.) Ltd. Delhi High Court
392 ITR 444 · 2017 · High Court
111
citing judgments

For valid initiation of reassessment proceedings, the Assessing Officer must possess tangible material and apply independent mind to form a 'reason to believe' that income has escaped assessment. Reassessment cannot be based on mere borrowed satisfaction or unverified information without proper scrutiny.

2 CIT v. Indrajit Singh Suri
33 Taxmann.com 281 · 2013 · High Court
100
citing judgments

The validity of reassessment proceedings initiated under Sections 147/148 against legal representatives of a deceased assessee requires a demonstrable 'reason to believe' that income escaped assessment, often based on third-party information such as alleged accommodation entries.

Dharappa v. Bijapur Co-operative Milk Producers Societies Union Ltd.
9 SCC 109 · 2007 · Reported
62
citing judgments

When a State Act has obtained presidential assent, its repugnant provisions prevail over the provisions of a Central Act in that State, even if both laws relate to subjects in the Concurrent List. This principle was applied to determine repugnancy between the Karnataka Co-operative Societies Act, 1959, and the Industrial Disputes Act, 1947.

CIT v. Sanghamitra Bharali
361 ITR 481 · 2014 · High Court
60
citing judgments

Capital gains arising from sham transactions, particularly those involving penny stocks designed to appear genuine, are not exempt under Section 10(38) but are taxable as unaccounted income brought into the books.

CIT v. Active Traders (P.) Ltd.
214 ITR 583 · 1995 · High Court
55
citing judgments

When a sum is credited on account of share capital or share premium, the assessee must establish the existence, identity, genuineness, and creditworthiness of the share applicants, going beyond mere submission of documents. The Assessing Officer has the power to investigate and lift the corporate veil to ascertain the bonafides of such transactions.

Income Tax Vs. India Discount Co. Ltd. 75 ITR 191 (SC), Commissioner of Income Tax v. Provincial Farmers (P) Ltd.
245 ITR 421 · 2000 · Supreme Court
55
citing judgments

The entry in the books of accounts is not determinative of the true nature of a transaction for income tax purposes; the substance of the transaction, rather than its accounting treatment, governs its taxability and deductibility.

Judgments citing entry operator

Indarsen Shamlal Pvt. Ltd., Kolkata vs. ITO, Circle 1(1), Kolkata

In the result, the appeal of the assessee is allowed for statistical

ITA 699/KOL/2025[2015-16]Status: DisposedITAT Kolkata01 Jul 2025AY 2015-16

Bench: Shri George Mathan & Shri Rakesh Mishra

For Appellant: Shri Ayush Gupta, ARFor Respondent: Shri Kapil Mandal, DR
Section 143(2)Section 147Section 148Section 148ASection 151Section 250

enquiry before drawing the adverse inference against the assessee company that the assessee company is a beneficiary of accommodation entry provided by the alleged entry operators whose names have been repeatedly mentioned in the notices issued by the Learned Assessing Officer. The Learned As- sessing Officer solely relied

Harsh Comtrade Pvt Ltd, Surat vs. Income Tax Officer, Ward 5(4), Kolkata

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 225/KOL/2024[2012-13]Status: DisposedITAT Kolkata01 Jul 2025AY 2012-13

Bench: Shri George Mathanआयकर अपील सं/Ita No.225/Kol/2024 (नििाारण वर्ा / Assessment Year :2012-2013) Harsh Comtrade Private Limited, Vs Ito, Ward-5(4), Kolkata 1/A, Stuti Apartment, Near Ashok Panhouse, City Light, Surat, Gujarat Pan No. :Aabcg 8847 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) : Shri Mehul Shah, Ar नििााररती की ओर से /Assessee By राजस्व की ओर से /Revenue By : Shri S.B. Chakraborthy, Addl. Cit-Sr.Dr सुनवाई की तारीख / Date Of Hearing : 01/07/2025 घोषणा की तारीख/Date Of Pronouncement : 01/07/2025 आदेश / O R D E R This Is An Appeal Filed By The Assessee Against The Order Of The Ld Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Dated 28.12.2023, Passed In Din & Order No.Itba/Nfac/S/250/2023-24/1059161646(1) For The Assessment Year 2012-2013. 2. Shri Mehul Shah, Ld. Ar Appeared On Behalf Of The Assessee & Shri S.B.Chakraborthy, Ld.Sr. Dr Appeared On Behalf Of The Revenue. 3. At The Time Of Hearing, Ld. Ar Submitted That He Has Filed Written Submissions Before The Tribunal Which Has Been Placed In The Paper Book At Pages 90 To 104 Which Reads As Follows :- Before Income Tax Appellate Tribunal, Kolkata - 'Smc' Bench In The Case Of Harsh Comtrade Pvt. Ltd Sub: Written Submission For A.Y. 2012-13 Ref: Assessee'S Appeal No. 225/Kol/2024 Date Of Hearing: 21.08.2024 May It Please To Your Honour 1. In This Case, The Case Is Re-Opened On The Basis Of Reasons For Reopening Recorded On 23.03.2018. The Same Is Reproduced

For Respondent: Shri S.B. Chakraborthy, Addl. CIT-Sr.DR
Section 148

Move Merchants Pvt. Ltd. and presumed that the assessee was beneficiary of unaccounted black money routed through various shell companies maintained and controlled by entry operator. Therefore, the Assessing Officer issued notices u/s 143(2) and 142(1), however the assessee could not reply to the above notices

Deputy Commissioner of Income Tax- 4(3)(1), Mumbai vs. Speciality Papers Limited, Mumbai

Appeal of the revenue is partly allowed for statistical purposes

ITA 5054/MUM/2024[2013-14]Status: DisposedITAT Mumbai01 Jul 2025AY 2013-14

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Appellant: Ms. Neha Sharma 0 Advocate &For Respondent: Shri Arun Kanti Datta, CIT-DR
Section 131Section 132Section 143(3)Section 147Section 148ASection 153CSection 250

search operation u/s 132 of the Act was conducted at various premises in connection with the entities related to Shri Shirish C Shah, an entry operator. During the course of search, various documents belonging to the appellant company were also found from the computer of Shri Shirish C Shah wherein

Suresh Chandra Sadh, New Delhi vs. Circle 4(1)(1), Aligarh

In the result, the appeal of the assessee is partly allowed

ITA 178/AGR/2024[2016-17]Status: DisposedITAT Agra30 Jun 2025AY 2016-17

Bench: Shri Sunil Kumar Singh & Shri Brajesh Kumar Singh[Assessment Year: 2016-17]

Section 10(38)Section 131Section 147Section 148Section 234BSection 68

treating the Long-term Capital Gain earned by the appellant as bogus accommodation entry without making his own investigation and without verifying the alleged entry operator and / or such alleged entry operator u/s 131 / 133(6) and in view of the facts and in the circumstances the action

The Assistant Commissioner of Income Tax, Circle-1(1), Vijayawada vs. Vedmutha Electricals India Private Limited, Vijayawada

In the result, all the captioned appeals filed by the Revenue are allowed for statistical purposes

ITA 38/VIZ/2025[2017-18]Status: DisposedITAT Visakhapatnam30 Jun 2025AY 2017-18

Bench: Us:

For Appellant: None
Section 131Section 147

erred in deleting the additions of Rs.4,46,125/- ignoring the fact that during the course of Survey operation, the entry operators and exit providers in their statements recorded during 133A operation had accepted that the scrip of Essar(India) Limited had been used for providing accommodation entries, the identity ... shares. Further, the name of the said company had figured in the list of confirmed shell companies as circulated by FIU IND. Also, the entry operators and exit providers in their statements had admitted that the scrip of “Essar India Limited” was being used for providing accommodation entries

The Assistant Commissioner of Income Tax, Circle-1(1), Vijayawada vs. Vedmutha Electricals India Private Limited, Vijayawada

In the result, all the captioned appeals filed by the Revenue are allowed for statistical purposes

ITA 37/VIZ/2025[2017-18]Status: DisposedITAT Visakhapatnam30 Jun 2025AY 2017-18

Bench: Us:

For Appellant: None
Section 131Section 147

erred in deleting the additions of Rs.4,46,125/- ignoring the fact that during the course of Survey operation, the entry operators and exit providers in their statements recorded during 133A operation had accepted that the scrip of Essar(India) Limited had been used for providing accommodation entries, the identity ... shares. Further, the name of the said company had figured in the list of confirmed shell companies as circulated by FIU IND. Also, the entry operators and exit providers in their statements had admitted that the scrip of “Essar India Limited” was being used for providing accommodation entries

ACIT, Circle-1(1), Vijayawada vs. Vedmutha Electricals India Private Limited, Vijayawada

In the result, all the captioned appeals filed by the Revenue are allowed for statistical purposes

ITA 36/VIZ/2025[2016-17]Status: DisposedITAT Visakhapatnam30 Jun 2025AY 2016-17

Bench: Us:

For Appellant: None
Section 131Section 147

erred in deleting the additions of Rs.4,46,125/- ignoring the fact that during the course of Survey operation, the entry operators and exit providers in their statements recorded during 133A operation had accepted that the scrip of Essar(India) Limited had been used for providing accommodation entries, the identity ... shares. Further, the name of the said company had figured in the list of confirmed shell companies as circulated by FIU IND. Also, the entry operators and exit providers in their statements had admitted that the scrip of “Essar India Limited” was being used for providing accommodation entries

The Income Tax Officer, Circle-1(1), Vijayawada vs. Vedmutha Electricals India Private Limited, Vijayawada

In the result, all the captioned appeals filed by the Revenue are allowed for statistical purposes

ITA 35/VIZ/2025[2014-15]Status: DisposedITAT Visakhapatnam30 Jun 2025AY 2014-15

Bench: Us:

For Appellant: None
Section 131Section 147

erred in deleting the additions of Rs.4,46,125/- ignoring the fact that during the course of Survey operation, the entry operators and exit providers in their statements recorded during 133A operation had accepted that the scrip of Essar(India) Limited had been used for providing accommodation entries, the identity ... shares. Further, the name of the said company had figured in the list of confirmed shell companies as circulated by FIU IND. Also, the entry operators and exit providers in their statements had admitted that the scrip of “Essar India Limited” was being used for providing accommodation entries

ACIT, Circle-1(1), Vijayawada vs. Vedmutha Electricals India Private Limited, Vijayawada

In the result, all the captioned appeals filed by the Revenue are allowed for statistical purposes

ITA 34/VIZ/2025[2013-14]Status: DisposedITAT Visakhapatnam30 Jun 2025AY 2013-14

Bench: Us:

For Appellant: None
Section 131Section 147

erred in deleting the additions of Rs.4,46,125/- ignoring the fact that during the course of Survey operation, the entry operators and exit providers in their statements recorded during 133A operation had accepted that the scrip of Essar(India) Limited had been used for providing accommodation entries, the identity ... shares. Further, the name of the said company had figured in the list of confirmed shell companies as circulated by FIU IND. Also, the entry operators and exit providers in their statements had admitted that the scrip of “Essar India Limited” was being used for providing accommodation entries

Shanker Enterprises, Kanpur vs. DCIT-2, Kanpur

In the result, the appeal of the Assessee stands allowed for statistical purposes

ITA 221/LKW/2025[2012-13]Status: DisposedITAT Lucknow30 Jun 2025AY 2012-13

Bench: Shri. Sudhanshu Srivastava & Shri Nikhil Choudharyassessment Year: 2012-13 Shanker Enterprises V. The Dcit-2 Panki Industrial Area Kanpur Site-1, Kanpur Tan/Pan:Abffs2369Q (Appellant) (Respondent) Appellant By: Shri Swaran Singh, C.A. Respondent By: Shri Amit Kumar, D.R. Date Of Hearing: 09 06 2025 Date Of Pronouncement: 30 06 2025 O R D E R

For Appellant: Shri Swaran Singh, C.AFor Respondent: Shri Amit Kumar, D.R
Section 142(1)Section 143(3)Section 147Section 147oSection 153CSection 271(1)(c)

also during assessment proceedings, it was allegedly established that M/s Bansal Suppliers Pvt. Ltd. was acting as a tool to provide accommodation entries through entry operators, Shri Shashwat Agarwal and Shri Adesh Agarwal to various parties and that although M/s Rich Udyog Network and its Directors had filed Writ Petitions

Dy. Commissioner of Income-Tax-1(1)(1), Mumbai vs. M/S. Chopra Strips Limited, Rajasthan

In the result, the appeal filed by the revenue is dismissed

ITA 6818/MUM/2024[2012]Status: DisposedITAT Mumbai30 Jun 2025

Bench: Shri Narender Kumar Choudhry & Smt. Renu Jauhriआयकर अपील सुं./Ita No. 6818/Mum/2024 (नििाारण वर्ा / Assessment Year :2012-13) Dcit-1(1)(1), Mumbai V/S. M/S. Chopra Strips Ltd. बिाम Room No. 579A, 5 Th Floor, D-194-195, Boranada Agro Aayakar Bhawan, Mumbai- Food Park, Jodhpur, 400020 Rajasthan-342008 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aaccc3063C Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee By: Shri Vinod Kumar Bindal/Shri Satish Gupta राजस्व की ओर से /Revenue By: Shri Yogesh Kumar, Sr. Dr.

For Appellant: Shri Vinod Kumar Bindal/ShriFor Respondent: Shri Yogesh Kumar, Sr. DR
Section 143(1)Section 143(3)Section 148Section 68

identity, creditworthiness and genuineness of the creditor, in view of specific information received from investigation wing regarding share capital received from Kolkata based accommodation entry operator. 2. Whether in the facts and circumstances of the case and in law the Ld. CIT(A) has failed to consider the fact

Income Tax Officer, Bandra East, Mumbai vs. Nayan Bipanchandra Shah, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 3914/MUM/2024[2012-13]Status: DisposedITAT Mumbai30 Jun 2025AY 2012-13

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhailito, Ward-34(2)(7), Room No.754, Kautilya Bhavan, Bkc, Bandra (E), Mumbai - 400051 ............... Appellant V/S Nayan Bipinchandra Shah, 16, Municipal Chawl, Parekh Nagar, ……………… Respondent Kandivali West, Mumbai - 400067 Pan : Bfjps5238F Assessee By : Shri Gopal Sharma Revenue By : Shri Bhagirath Ramawat, Sr.Dr

For Appellant: Shri Gopal SharmaFor Respondent: Shri Bhagirath Ramawat, Sr.DR
Section 142(1)Section 147Section 148Section 250Section 68

failed to appreciate that the company and the broker/other entities were involved in price manipulation in the scrip and the scrip was utilized by entry operators for providing accommodation entries under the garb of LTCG/ STCG/ STCL/ Business Loss by manipulating / rigging of the Share price. 3. "On the facts

ACIT, New Delhi vs. Filatex India Limited, Delhi

ITA 5000/DEL/2024[2015-16]Status: DisposedITAT Delhi30 Jun 2025AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him and the assessee is one of the beneficiaries. His statements were also recorded ... 34/Del/2025 & 89, 90 & 91/Del/2024 3. The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary pre-requisite to give such entities a semblance of a genuine business. Filing of such documents does not mitigate lack of genuineness

ACIT, New Delhi vs. Animate Infrastructure Private Limited, Delhi

ITA 4850/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 148

submissions. 3. The AO observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him including the assessee. His statements were also recorded during ... hide its illegal operations. 3. The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary ITA Nos. 4850/Del/2024 & C.O.Nos.14 & 20/Del/2025 pre-requisite to give such entities a semblance of a genuine business. Filing of such documents does

ACIT, Delhi vs. Grand Estate LLP, Delhi

In the result, appeal of the Revenue in ITA No

ITA 4740/DEL/2024[2018-19]Status: DisposedITAT Delhi30 Jun 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

submissions. 3. The AO observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him including the assessee. His statements were also recorded during ... hide its illegal operations. 3. The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary pre- requisite to give such entities a semblance of a genuine business. Filing of such documents does not mitigate lack of genuineness

ACIT, Dlehi vs. Grand Estates LLP, Delhi

ITA 4737/DEL/2024[2017-18]Status: DisposedITAT Delhi30 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

submissions. 3. The AO observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him including the assessee. His statements were also recorded during ... hide its illegal operations. 3. The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary pre- requisite to give such entities a semblance of a genuine business. Filing of such documents does not mitigate lack of genuineness

ACIT, Delhi vs. Grand Estates LLP, Delhi

ITA 4729/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 132Section 143(1)Section 143(2)Section 147Section 148

submissions. 3. The AO observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him including the assessee. His statements were also recorded during ... hide its illegal operations. 3. The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary pre- requisite to give such entities a semblance of a genuine business. Filing of such documents does not mitigate lack of genuineness

ACIT, New Delhi vs. Filatax Inida Limited, Delhi

In the result, appeal of the assessee is partly allowed

ITA 4635/DEL/2024[2013-14]Status: DisposedITAT Delhi30 Jun 2025AY 2013-14

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him and the assessee is one of the beneficiaries. His statements were also recorded ... 34/Del/2025 & 89, 90 & 91/Del/2024 The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary pre-requisite to give such entities a semblance of a genuine business. Filing of such documents does not mitigate lack of genuineness

Dy. Commissioner of Income Tax, Delhi vs. Filatex India Limited, Delhi

ITA 2060/DEL/2024[2016-17]Status: DisposedITAT Delhi30 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him and the assessee is one of the beneficiaries. His statements were also recorded ... 34/Del/2025 & 89, 90 & 91/Del/2024 3. The Ld. CIT(A) has failed to appreciate that submissions of audited accounts and bank statements of alleged entry operator are necessary pre-requisite to give such entities a semblance of a genuine business. Filing of such documents does not mitigate lack of genuineness

DCIT, New Delhi vs. Madhav Bhageria, New Delhi

ITA 2059/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Jun 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 115BSection 132Section 133(6)Section 139(1)Section 142(1)Section 143(2)Section 250Section 68Section 69C

time. The AO observed that a search was simultaneously carried out in the case of Shri Ankit Bhageria who was alleged as the entry operator and involved in providing accommodation entries to various beneficiaries through Shell companies operated by him and the assessee is one of the beneficiaries. His statements ... however, the AO though had observed that these four companies are Shell companies which are managed and controlled by Shri Ankit Bhageria (alleged as entry operator) however, only loans of INR 5.90 crores were considered as accommodative entries and accepted the balance amount of loans of INR 18.35 crores received