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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

Vicky Rajesh Jhaveri, Ahmedabad vs. The DCIT, Cent. Cir. 1(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 426/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad10 Jun 2024AY 2010-11

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri Deepak R Shah, A.RFor Respondent: Shri Atul Pandey, C.I.T DR
Section 132(4)

claim of the assessee. Unless specific evidence is brought on record to prove that the assessee was involved in the collusion with the entry operator/ stockbrokers for such a scam. In the absence of such finding how is it possible to link their wrong doings with the assessee. Further

Sagar Rajesh Jhaveri, Ahmedabad vs. The DCIT, Cent. Cir. 1(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 425/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad10 Jun 2024AY 2012-13

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri Deepak R Shah, A.RFor Respondent: Shri Atul Pandey, C.I.T DR
Section 132(4)

claim of the assessee. Unless specific evidence is brought on record to prove that the assessee was involved in the collusion with the entry operator/ stockbrokers for such a scam. In the absence of such finding how is it possible to link their wrong doings with the assessee. Further

Sagar Rajesh Jhaveri, Ahmedabad vs. The DCIT, Cent. Cir. 1(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 424/AHD/2023[2011-12]Status: DisposedITAT Ahmedabad10 Jun 2024AY 2011-12

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri Deepak R Shah, A.RFor Respondent: Shri Atul Pandey, C.I.T DR
Section 132(4)

claim of the assessee. Unless specific evidence is brought on record to prove that the assessee was involved in the collusion with the entry operator/ stockbrokers for such a scam. In the absence of such finding how is it possible to link their wrong doings with the assessee. Further

Sagar Rajesh Jhaveri, Ahmedabad vs. The DCIT, Cent. Cir. 1(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 423/AHD/2023[2010-11]Status: DisposedITAT Ahmedabad10 Jun 2024AY 2010-11

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri Deepak R Shah, A.RFor Respondent: Shri Atul Pandey, C.I.T DR
Section 132(4)

claim of the assessee. Unless specific evidence is brought on record to prove that the assessee was involved in the collusion with the entry operator/ stockbrokers for such a scam. In the absence of such finding how is it possible to link their wrong doings with the assessee. Further

Jainco Transmission Ltd., Kolkata vs. DCIT, Cir. 11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 410/KOL/2024[2011-12]Status: DisposedITAT Kolkata07 Jun 2024AY 2011-12

Bench: Shri Rajpal Yadav, Vice-(Kz) & Dr. Manish Boradi.T.A. No. 410/Kol/2024 Assessment Year: 2011-2012 Jainco Transmission Limited,…………………Appellant 70, Diamond Harbour Road, 3Rd Floor, Ekbalpore, Kolkata-700023 [Pan:Aabcj7859G] -Vs.- Deputy Commissioner Of Income Tax,.....…Respondent Circle-11(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances By: Shri Miraj D. Shah, A.R., Appeared On Behalf Of The Assessee Shri P.P. Barman, Sr. D.R. Appeared On Behalf Of The Revenue Date Of Concluding The Hearing : May 15, 2024 Date Of Pronouncing The Order : June 07, 2024 O R D E R

Section 143(1)Section 148Section 68

business activities and are controlled and managed by Dinesh Dhandhania, Pankaj Agarwal, Vijay Kumar Gupta, Anand Singhania and Bhagwan Das Agarwal, well known entry operators of Kolkata for the purpose of providing accommodation entries in the form of bogus share capital/share premium, pre-arranged bogus LTCG/STCL & unsecured loans

M/S Wisley Real Estate Pvt. Ltd., Kolkata vs. ITO, Ward-11(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 55/KOL/2024[2012-13]Status: DisposedITAT Kolkata06 Jun 2024AY 2012-13

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No. 55/Kol/2024 Assessment Year: 2012-2013 M/S. Wisley Real Estate Pvt. Ltd.,…..........Appellant 86C, Viswakarma, 1St Floor, Topsia Road, Tiljala, Kolkata-700046 [Pan:Aakcs8704L] -Vs.- Income Tax Officer,……..........................Respondent Ward-11(3), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances By: Shri A.K. Tulsyan, Fca, Appeared On Behalf Of The Assessee Shri P.P. Barman, Addl. Cit, Sr. Dr, Appeared On Behalf Of The Revenue Date Of Concluding The Hearing : 18Th March, 2024 Date Of Pronouncing The Order: June 6Th , 2024 O R D E R

Section 131Section 133(6)Section 234BSection 68

alleged unexplained cash credit. In all these cases, the Department had alleged that the share application monies were received from persons who were ‘entry operators’ and the monies received by way of share application was nothing but was routing of unaccounted money of assessee in the form of subscription

Nisha Goel, Delhi vs. Income Tax Officer, Ward 52(3), Ward

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

ITA 2767/DEL/2023[2012-13]Status: DisposedITAT Delhi04 Jun 2024AY 2012-13

Bench: Shri Shamim Yahya & Shri Challa Nagendra Prasadिनधा"रणवष"/Assessment Year: 2012-13

Section 144Section 147Section 151

Assessee had taken after paying unaccounted cash to the accommodation entry given (sic giver)". The AO adds that the said accommodation was "a known entry operator" the source being "the report of the Investigation Wing". 21. The third and last part contains the conclusion drawn by the AO that ... basis for which is not disclosed. Who is the accommodation entry giver is not mentioned. How he can be said to be "a known entry operator" is even more mysterious. Clearly the source for all these conclusions, one after the other, is the Investigation report of the DIT. Nothing from

Ashwini Finman Services Pvt Ltd, New Delhi vs. Pr. CIT - I, New Delhi

ITA 3200/DEL/2019[2009-10]Status: DisposedITAT Delhi04 Jun 2024AY 2009-10

Bench: Sh. G.S.Pannu, Hon’Ble & Sh. Anubhav Sharmam/S. Ashwini Finman Services Vs. Pcit-1 Pvt. Ltd. New Delhi 79, Agroha Kunj, Sector-13 Rohini New Delhi- 110085 Pan : Aaeca5417G (Appellant) (Respondent)

Section 147Section 263Section 68

documents of Jain brothers corroborates with the Banking channel and during the year the following entries have been taken by the assessee from the entry operators. Cheque From To Name Cheque / Amount Name of Annex Page Book Compan compan of the R/TGS/P (Rs.) the ure no. date y name

Vipul Kumar Modi, Jaipur vs. Principal Commissioner of Income Tax, Jaipur -I

In the result, appeal of the assessee is allowed

ITA 310/JPR/2024[2016-2017]Status: DisposedITAT Jaipur03 Jun 2024AY 2016-2017

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

For Appellant: Shri Sidharth Ranka &For Respondent: Shri Anil Dhaka (CIT) a
Section 142(1)Section 143(1)Section 147Section 263

entire shareholding of which is bought by the syndicate to provide accommodation entries to the beneficiaries with the help of the brokers and entry operators. It was also noticed that transactions to provide such accommodation entries are done in three steps i.e. purchase of share at nominal rate, price rigging

Ketan Harilal Mehta HUF by Its Karta Ketan H Mehta, Mumbai vs. ITO Ward-33(2)(2) Mumbai Presently Juridiction With ITO 42(1)(1) Mumbai, Mumbai

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

ITA 770/MUM/2023[2014-15]Status: DisposedITAT Mumbai03 Jun 2024AY 2014-15

Bench: Shri B R Baskaran & Shri Pavan Kumar Gadaleketan Harilal Mehta Huf Vs. Ito-42(1)(1), (By Its Karta Kautilya Bhavan, Ketanmehta)No.B/1101, Bkc,Bandra(E), Siddhi Vinayak Tower, Mumbai-400051. Opp Phoenix Hospital, Chikuwadi, Mumbai-400092. Pan/Gir No. : Aaehk3266N Appellant .. Respondent Appellant By : Shri. Nishit Gandhi.Ar Respondent By : Shri. P.D. Chougule.Sr.Dr Date Of Hearing 02.04.2024 Date Of Pronouncement 03.06.2024 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: The Appeal Is Filed By The Assessee Against The Order Of The National Faceless Appeal Centre (Nfac)(Cit(A)) Delhi Passed U/Sec 143(3) & U/Sec250 Of The Income Tax Act. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri. Nishit Gandhi.ARFor Respondent: Shri. P.D. Chougule.Sr.DR
Section 10(38)Section 68Section 69C

Income Tax Department after identifying 84 scrips to be penny stocks and the modus operandi adopted by those scrips with the connivance of various entry operators, brokers and stock exchange. We find that the ld DR was not specifically able to controvert the documentary evidences filed by the assessee ... shares under section 10(38) - Assessing Officer rejected assessee's plea and made additions under sections 68 and 69 by relying on statements from 'entry operators' On appeal, Commissioner (Appeals) accepted assessee's claim, noting that shares were purchased via Account Payee Cheques, held in a Demat Account for over

Jet Air Agencies Pvt Ltd, West Bengal vs. Central Circle 2(3)Ahmedabad, Ahmedabad

In the result, Ground Nos

ITA 685/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad31 May 2024AY 2012-13

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri Ram Awatar Dhoot, A.RFor Respondent: Shri Santosh Kumar, Sr. DR
Section 147Section 234BSection 271(1)

rate of 3% on the said amount of Rs.7.37 Crs. to the tune of Rs.22.12 lacs. The assessee has been alleged to be an entry operator providing bills of purchase & sales without any actual business transactions. 4. The amount of Rs.7.37 Crs. has been added on protective basis and information ... transaction. It would be very difficult to gather direct proof of the meeting of minds of those brokers or sub-brokers or middlemen or entry operators and therefore, the test to be applied is the test of preponderance of probabilities to ascertain as to whether there has been violation

Jet Air Agencies Pvt. Ltd, West Bengal vs. The ACIT, Centra Circle-2(3), Ahmedabad

In the result, Ground Nos

ITA 1597/AHD/2019[2012-13]Status: DisposedITAT Ahmedabad31 May 2024AY 2012-13

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri Ram Awatar Dhoot, A.RFor Respondent: Shri Santosh Kumar, Sr. DR
Section 147Section 234BSection 271(1)

rate of 3% on the said amount of Rs.7.37 Crs. to the tune of Rs.22.12 lacs. The assessee has been alleged to be an entry operator providing bills of purchase & sales without any actual business transactions. 4. The amount of Rs.7.37 Crs. has been added on protective basis and information ... transaction. It would be very difficult to gather direct proof of the meeting of minds of those brokers or sub-brokers or middlemen or entry operators and therefore, the test to be applied is the test of preponderance of probabilities to ascertain as to whether there has been violation

Jet Air Agencies Pvt. Ltd, West Bengal vs. The ACIT, Centra Circle-2(3), Ahmedabad

In the result, Ground Nos

ITA 1596/AHD/2019[2011-12]Status: DisposedITAT Ahmedabad31 May 2024AY 2011-12

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri Ram Awatar Dhoot, A.RFor Respondent: Shri Santosh Kumar, Sr. DR
Section 147Section 234BSection 271(1)

rate of 3% on the said amount of Rs.7.37 Crs. to the tune of Rs.22.12 lacs. The assessee has been alleged to be an entry operator providing bills of purchase & sales without any actual business transactions. 4. The amount of Rs.7.37 Crs. has been added on protective basis and information ... transaction. It would be very difficult to gather direct proof of the meeting of minds of those brokers or sub-brokers or middlemen or entry operators and therefore, the test to be applied is the test of preponderance of probabilities to ascertain as to whether there has been violation

Jet Air Agencies Pvt. Ltd, West Bengal vs. The ACIT, Centra Circle-2(3), Ahmedabad

In the result, Ground Nos

ITA 1595/AHD/2019[2011-12]Status: DisposedITAT Ahmedabad31 May 2024AY 2011-12

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri Ram Awatar Dhoot, A.RFor Respondent: Shri Santosh Kumar, Sr. DR
Section 147Section 234BSection 271(1)

rate of 3% on the said amount of Rs.7.37 Crs. to the tune of Rs.22.12 lacs. The assessee has been alleged to be an entry operator providing bills of purchase & sales without any actual business transactions. 4. The amount of Rs.7.37 Crs. has been added on protective basis and information ... transaction. It would be very difficult to gather direct proof of the meeting of minds of those brokers or sub-brokers or middlemen or entry operators and therefore, the test to be applied is the test of preponderance of probabilities to ascertain as to whether there has been violation

Jet Air Agencies Pvt. Ltd, West Bengal vs. The ACIT, Centra Circle-2(3), Ahmedabad

In the result, Ground Nos

ITA 1594/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad31 May 2024AY 2010-11

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri Ram Awatar Dhoot, A.RFor Respondent: Shri Santosh Kumar, Sr. DR
Section 147Section 234BSection 271(1)

rate of 3% on the said amount of Rs.7.37 Crs. to the tune of Rs.22.12 lacs. The assessee has been alleged to be an entry operator providing bills of purchase & sales without any actual business transactions. 4. The amount of Rs.7.37 Crs. has been added on protective basis and information ... transaction. It would be very difficult to gather direct proof of the meeting of minds of those brokers or sub-brokers or middlemen or entry operators and therefore, the test to be applied is the test of preponderance of probabilities to ascertain as to whether there has been violation

DCIT, Central Circle-18, New Delhi vs. Geeta Sharma, Ghaziabad

In the result, cross objection stands partly allowed, whereas appeal by the

ITA 725/DEL/2019[2010-11]Status: DisposedITAT Delhi31 May 2024AY 2010-11

Bench: Shri Saktijit Dey & Shri Naveen Chandra

Section 132Section 153A

learned First Appellate Authority. While deciding the appeals, learned First Appellate Authority held that the Assessing Officer has found the assessees to be only entry operators, providing accommodation entries to NKG group without carrying out any real trading activity. Therefore, he held that no addition on account of bogus purchases

DCIT, Central Circle-18, New Delhi vs. Geeta Sharma, Ghaziabad

In the result, cross objection stands partly allowed, whereas appeal by the

ITA 724/DEL/2019[2009-10]Status: DisposedITAT Delhi31 May 2024AY 2009-10

Bench: Shri Saktijit Dey & Shri Naveen Chandra

Section 132Section 153A

learned First Appellate Authority. While deciding the appeals, learned First Appellate Authority held that the Assessing Officer has found the assessees to be only entry operators, providing accommodation entries to NKG group without carrying out any real trading activity. Therefore, he held that no addition on account of bogus purchases

DCIT, Central Circle-18, New Delhi vs. Geeta Sharma, Ghaziabad

In the result, cross objection stands partly allowed, whereas appeal by the

ITA 723/DEL/2019[2008-09]Status: DisposedITAT Delhi31 May 2024AY 2008-09

Bench: Shri Saktijit Dey & Shri Naveen Chandra

Section 132Section 153A

learned First Appellate Authority. While deciding the appeals, learned First Appellate Authority held that the Assessing Officer has found the assessees to be only entry operators, providing accommodation entries to NKG group without carrying out any real trading activity. Therefore, he held that no addition on account of bogus purchases

DCIT, Central Circle-18, New Delhi vs. Guru Prasad Sharma, Ghaziabad

In the result, cross objection stands partly allowed, whereas appeal by the

ITA 720/DEL/2019[2010-11]Status: DisposedITAT Delhi31 May 2024AY 2010-11

Bench: Shri Saktijit Dey & Shri Naveen Chandra

Section 132Section 153A

learned First Appellate Authority. While deciding the appeals, learned First Appellate Authority held that the Assessing Officer has found the assessees to be only entry operators, providing accommodation entries to NKG group without carrying out any real trading activity. Therefore, he held that no addition on account of bogus purchases

DCIT, Central Circle-18, New Delhi vs. Guru Prasad Sharma, Ghaziabad

In the result, cross objection stands partly allowed, whereas appeal by the

ITA 719/DEL/2019[2009-10]Status: DisposedITAT Delhi31 May 2024AY 2009-10

Bench: Shri Saktijit Dey & Shri Naveen Chandra

Section 132Section 153A

learned First Appellate Authority. While deciding the appeals, learned First Appellate Authority held that the Assessing Officer has found the assessees to be only entry operators, providing accommodation entries to NKG group without carrying out any real trading activity. Therefore, he held that no addition on account of bogus purchases