“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

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

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

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

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

Agamani Vanijya Pvt. Ltd., Raipur vs. National Faceless Assessment Centre, Delhi

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

ITA 365/KOL/2024[2013-14]Status: DisposedITAT Kolkata27 Sept 2024AY 2013-14

Bench: Dr. Manish Borad & Shri Sonjoy Sarmai.T.A. No.365/Kol/2024 Assessment Year: 2013-14 Agamani Vanijya Pvt. Ltd. ………. Appellant Vandana Auto Rmakund, G.E. Road, Chhattisgarh-492001. (Pan: Aagca6022P) Vs. Assessing Officer ………… Respondent National Faceless Assessment Centre, Delhi. Appearances By: Shri Abhisek Bansal, Ar Appeared For Appellant. Shri Pradip Kumar Biswas, Addl. Cit Appeared For Respondent. Date Of Concluding The Hearing : 28.08.2024 Date Of Pronouncing The Order : 27.09.2024 Order Per Dr. Manish Borad: This Appeal Filed At The Instance Of The Assessee Pertaining To The Assessment Year (In Short “Ay”) 2013-14 Is Directed Against The Order Passed U/S 250 Of The Income Tax Act, 1961 In Short The “Act”) By Ld. Commissioner Of Income-Tax, (Appeals), National Faceless Appeal Centre (Nfac), Delhi [In Short Ld. “Cit(A)”] Dated 29.12.2023 Arising Out Of The Assessment Order

Section 143(3)Section 147Section 250Section 68

below and further stated that RSPL is a ‘jamakharchi’/shell company and the alleged transaction is a part of layering of funds by accommodation entry operator. 6. We have heard rival submissions and perused the material placed before us. Addition u/s. 68 of the Act at Rs. 30 lakh confirmed

Comfort Intech Limited, Mumbai vs. Assistant Commissioner of Income Tax 4(1)(1) Mumbai, Aaykar Bhawan Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2926/MUM/2024[2012-2013]Status: DisposedITAT Mumbai27 Sept 2024AY 2012-2013

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Agrawal is director in assessee company and is a key person in comfort group. In the statement. Mr.AnilAgrawal has accepted that he is an entry operator and has used bogus entities/companies managed by him for providing various bogus accommodation entries to the various beneficiaries for commission. In another search operation ... conducted by Delhi investigation wing statement of another entry operator Mr.Raj Kumar Kedia was recorded. Raj Kedia has highlighted role of Mr.Anil Agrawal in providing accommodation entries in the form of long term capital gain. 3. Various entities which have purchased shares of assessee company are identified as bogus companies

Comfort Intech Limited, Mumbai vs. Assistant Commissioner of Income Tax 4(1)(1) Mumbai, Aaykar Bhawan Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2573/MUM/2024[2011-12]Status: DisposedITAT Mumbai27 Sept 2024AY 2011-12

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Jayshree Ravi Sancheti, Mumbai vs. PCIT-20, Mumbai

In the result, the appeal of the assessee is allowed

ITA 2269/MUM/2024[2013-14]Status: DisposedITAT Mumbai27 Sept 2024AY 2013-14

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

For Appellant: Shri Prakash Jhunjhunwala, ARFor Respondent: Ms. Rajeshwari Menon, Sr. DR

Section 10(38)Section 147Section 148Section 263Section 68Section 69C

contradiction in the assessment order, where on the one hand, the Assessing Officer treats the share transaction as an accommodation entry arranged through an entry operator, but on the other hand, ends up allowing the purchase as expenditure and not making any addition for the expenditure incurred for arranging such

Assistant Commissioner of Income Tax- 4(1)(1), Mumbai vs. Comfort Intech Limited, Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2218/MUM/2024[2011-12]Status: DisposedITAT Mumbai27 Sept 2024AY 2011-12

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Assistant Commissioner of Income Tax-4(1)(1), Mumbai vs. Comfort Intech Limited, Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2216/MUM/2024[2012-13]Status: DisposedITAT Mumbai27 Sept 2024AY 2012-13

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Assistant Commissioner of Income Tax- 4(1)(1), Mumbai vs. Comfort Intech Limited, Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2212/MUM/2024[2014-15]Status: DisposedITAT Mumbai27 Sept 2024AY 2014-15

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Ishoo Narang, Hyderabad vs. DCIT Circle -2(1), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 450/HYD/2022[2014-15]Status: DisposedITAT Hyderabad25 Sept 2024AY 2014-15

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.450/Hyd/2022 & S.A. No.1/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2014-15) Ishoo Narang Vs. Dy. Cit Hyderabad Circle 2(1) Pan:Aaupn9082B Hyderabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri P Murali Mohan Rao, Ca राज" व "ारा/Revenue By:: Smt. Th Vijaya Lakshmi, Cit (Dr) सुनवाई की तारीख/Date Of Hearing: 19/08/2024 घोषणा की तारीख/Pronouncement: 25/09/2024 आदेश/Order Per Manjunatha, G. A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 15/07/2022 Of The Learned Cit (A)-Nfac Delhi, Relating To A.Y.2014-15. 2. The Assessee Has Raised The Following Grounds: “1. The Ld. Cit(A) Erred In Dismissing The Appeal. 2. The Ld.Cit(A) Erred In Holding That Al The Mandatory Preconditions Before Reopening Of Assessment U/S 147 Of The Act Were Duly Complied & Met With By The A.O.

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: : Smt. TH Vijaya Lakshmi, CIT (DR)

Section 10(38)Section 133ASection 147Section 68

from sale of above 2 companies shares is his own unaccounted income which was routed through entry of Long-Term Capital Gain provided by entry operators in association with stock brokers and thus, agreed to disclose additional income of Rs.6 ... financials but share price was rigged to an astronomical level. c) Statements were recorded during 133A proceedings and u/s 131 of Entry operators, share brokers and beneficiaries by Investigation Wing who admitted that they were providing accommodation entries to various Page

Anju Chirania, Mumbai vs. The Income Tax Officer, Ward - 4(1)(3), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 3158/MUM/2024[2015-16]Status: DisposedITAT Mumbai25 Sept 2024AY 2015-16

Bench: Shri Pavan Kumar Gadale, Judicialmember & Shri Girish Agrawalanju Chirania, Vs. Ito, Ward –4(1)(3), 301, Sona Chambers, Room No. 637, 507/509, Jss Road, Aayakar Bhavan, Chira Bazar, Marine Lines, M.K.Road, Mumbai – 400 002. Mumbai-400020. Pan/Gir No. Afcpc9073Q (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 133(6)Section 147Section 148Section 69A

prudent business man. The claim thus not best on the market movement but based on the information from any other person like entry operators. Regarding the decision of investment into the share were taken by the directors but minutes book of the company did not reflect any such decision ... directors. In this regard, investigation report had stated that the assessee company was managed and controlled by well-known entry operator Vipul Vidur Bhatt.” 6. The ld. AR further has invited our attention to the Recorded Reason of the ld.AO. The relevant paragraph is reproduced as below: - “3. The assesses

Smt. Manishadevi Vinodkumar Agarwal, Ahmedabad vs. The Pr. CIT-1, Ahmedabad

ITA 23/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad24 Sept 2024AY 2015-16

Bench: Shri Ramit Kochar (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 10(38)Section 143(3)Section 263

recorded by the Kolkatta Investigation wing of the persons involved in manipulation of shares of GCM Securities Limited , wherein its was admitted by accommodation entry operators that shares of GCM Securities Limited were manipulated and artificial bogus accommodation entries were facilitated in the shares of GCM Securities Limited

ITO-22(1)(1), Mumbai, Piramal Chamber vs. Gehrilal Rooplal Paliwal, Andheri East

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

ITA 3614/MUM/2024[2011-12]Status: DisposedITAT Mumbai24 Sept 2024AY 2011-12

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: Shri V.K. Chaturvedi, Sr. DR

Section 148Section 68

books. This again can be done in many ways i.e. either by purchasing in cash from grey markets and taking accommodation bills from some entry operators or by entering into some arrangements with brokers/suppliers who provide the material at higher price than the market rate and difference amount after deducting

Assistant Commissioner of Income Tax Central Circle1-(2), Hyderabad vs. M/S. Vpr Mining Infrastructure Pvt Ltd, Hyderabad

In the result, appeal of the Revenue is dismissed

ITA 89/HYD/2021[2012-13]Status: DisposedITAT Hyderabad23 Sept 2024AY 2012-13

Bench: Shri K.Narasimha Chary & Shri Madhusudan Sawdia

For Appellant: Shri S.K.Gupta, ARFor Respondent: Shri Kumar Pranav, CIT, DR

Section 143(2)Section 143(3)Section 153A

Learned DR further submitted that there is incriminating material available in this case in the form of the statements made by various entry operators and also the statement of the assessee in this case. 4. We have gone through the record in the light of the submissions made on either

Zula Merchandisc Pvt. Ltd., Kolkata vs. ITO, Ward-5(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 553/KOL/2024[2014-15]Status: DisposedITAT Kolkata23 Sept 2024AY 2014-15

Bench: Shri Rajpal Yadav, Vice- & Shri Rajesh Kumar]

Section 68

ground on which the ITAT found fault with the additions made by the AO was that reliance was placed on statement of 'so called entry operator' to justify the additions under sections 68 and 69 of the IT Act. These statements were recorded on various dates in some other proceedings ... list of the persons whose statement was allegedly recorded and who in their statement have admitted of price rigging, the names of share brokers, entry operators and exit providers have been mentioned. The facts on the file itself show that there was meeting of minds of the entry operators

Aditya Baheti, Jaipur vs. Income Tax Officer, Jaipur

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

ITA 562/JPR/2023[2014-15]Status: DisposedITAT Jaipur23 Sept 2024AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Ms. Nupur Khandelwal, C.A ( V.H.)For Respondent: Smt. Monisha Choudhary (Addl. CIT)

Section 10Section 10(38)Section 147Section 148

based his addition u/s 68 of the Act on the basis of statement of theentry operatorandinformation receivedfrom theInvestigationWingoftheDepartment. However in the statement of entry operator noquestion was everput to the entry operator regarding transaction through the companies, throughwhich alleged cash of appellantwas routed. On one hand the AO has oralstatements/oral ... evidences in the form of statement of entry operator (neverconfronted to the appellant); the appellant has rebutted these oral evidences byfiling documentary evidences listed above.It is a settled law that documentaryevidences willalwayscarry more weightthan the oralstatements.AftertheoralstatementswereavailabletotheAO,theappellantprovedtheor alstatementstobeincorrectbyfilingdocumentaryevidences.ThereaftertheAOdidnotprov ethedocumentaryevidencetobeuntrue/bogus/nongenuine.The AO never confronted the documentary evidence to the person whose oralstatementwasrecorded

Aadhunik Infrastructure Development Private Limited, Jalgaon vs. The Deputy Commissioner of Income Tax, Circle-1, Jalgaon

In the result, the appeal filed by the assessee is allowed

ITA 439/PUN/2023[2012-13]Status: DisposedITAT Pune18 Sept 2024AY 2012-13

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2012-13

For Appellant: Shri Kishor B PhadkeFor Respondent: Shri Ramnath P Murkunde

Section 143(3)Section 14ASection 271(1)(c)Section 68

received information from Inv. Wing Kolkata in which the entire modus operandi, investigation report in respect of accommodation entries given by certain entry operators in garb of facilitating fund trail to the non genuine paper entities, names of such entry providers along with entire material were enclosed. Thus ... information received by the AO was having complete modus operandi and other factual details in respect of accommodation entries received by the appellant through entry operators in the garb of exempt income. The AO has gone through the return of income furnished by the appellant

Braten Mandal, Kolkata vs. Income Tax Officer-25(1), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 1132/KOL/2023[2014-15]Status: DisposedITAT Kolkata17 Sept 2024AY 2014-15

Bench: Sri Rajesh Kumar & Pradip Kumar Choubey

Section 148Section 250

merely based on a theory called preponderance of probability that in same type of cases prices are rigged up and down by the entry operators in order to provide accommodation entry to various persons in the form of Long term capital gam and though, the assessing authority can apply preponderance ... companies. Based on such primary information, the income tax department has carried out extensive enquiries and search and surveys in the case of various entry operators and alleged companies and based on such statements, a theory was established regarding such accommodation/bogus entries in the form of capital gains. However, since

Braten Mandal, Kolkata vs. Income Tax Officer-25(1), Kolkata

In the result, both the appeals filed by the assessee are allowed

ITA 1128/KOL/2023[2013-14]Status: DisposedITAT Kolkata17 Sept 2024AY 2013-14

Bench: Sri Rajesh Kumar & Pradip Kumar Choubey

Section 148Section 250

Megapode Vyapaar Pvt. Ltd., Kolkata vs. D.C.I.T., Central Circle - 1(2), Kolkata

In the result, both the appeals of the assessee in ITA Nos

ITA 99/KOL/2023[2013-2014]Status: DisposedITAT Kolkata13 Sept 2024AY 2013-2014

Bench: Dr. Manish Borad, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri Rites Goel, ARFor Respondent: Shri P.P. Barman, DR

Section 143(2)Section 143(3)

ground on which the ITAT found fault with the additions made by the AO was that reliance was placed on statement of 'so called entry operator' to justify the additions under sections 68 and 69 of the IT Act. These statements were recorded on various dates in some other proceedings ... list of the persons whose statement was allegedly recorded and who in their statement have admitted of price rigging, the names of share brokers, entry operators and ITA Nos. 99 & 100/Kol/2023 Megapode Vyapaar Pvt. Ltd; A.Ys. 13-14 & 14-15 exit providers have been mentioned. The facts on the file

Megapode Vyapaar Pvt. Ltd., Kolkata vs. D.C.I.T., Central Circle - 1(2), Kolkata

In the result, both the appeals of the assessee in ITA Nos

ITA 100/KOL/2023[2014-2015]Status: DisposedITAT Kolkata13 Sept 2024AY 2014-2015

Bench: Dr. Manish Borad, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri Rites Goel, ARFor Respondent: Shri P.P. Barman, DR

Section 143(2)Section 143(3)

ground on which the ITAT found fault with the additions made by the AO was that reliance was placed on statement of 'so called entry operator' to justify the additions under sections 68 and 69 of the IT Act. These statements were recorded on various dates in some other proceedings ... list of the persons whose statement was allegedly recorded and who in their statement have admitted of price rigging, the names of share brokers, entry operators and ITA Nos. 99 & 100/Kol/2023 Megapode Vyapaar Pvt. Ltd; A.Ys. 13-14 & 14-15 exit providers have been mentioned. The facts on the file

Amol Awasthi, New Delhi vs. DCIT, Central Circle-I, New Delhi

In the result, appeals are allowed, as indicated

ITA 1348/DEL/2024[2018-19]Status: DisposedITAT Delhi13 Sept 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri M Balaganesh

For Appellant: Shri Vinod Kumar Bindal, ARFor Respondent: Shri Vijay B Vasanta, CIT-DR

Section 132Section 143(3)Section 144CSection 153ASection 153C

other countries through FT & TR references etc., time and again it has come to light that Shri Rajiv Saxena was functioning as an international entry operator, was engaged in dubious deals, and facilitated money laundering for Indian clients based in India and abroad. Assessee has rightly pointed out that