Indian Kanoon - Search engine for Indian Law

5.21 Since, the transactions in these two bank accounts appeared suspect, and since the assessee had not provided any details regarding the same during the course of search action, the same was asked from the assessee as part of the post search proceedings.

In his response, he stated that the transactions in the bank account relate to the trading in crypto currencies on behalf of his clients. On being asked about the modus of his trading as claimed by him, he stated that he gets the funds poo led from his customers who want to invest in crypto currencies. In the operation several wallets and bank accounts are involved which are managed by his employee Dinesh alias DG (who happens to be one of the members of the Whatsapp group "Office Bank" found in Amber Mada n's phone Huawei Y7 Prime where all the transactions found in excel sheet "Bank" has been discussed). After fund is pooled, Shiv Prakash Bansal directs 'DG' to buy crypto currencies and sell the crypto currency when the market is ripe. The proceeds of sale are channelized through Bank Accounts named Amit Industries and KG Cool Enterprises to respective clients. As per the statement of Shiv Prakash Bansal he did not know the technicalities of crypto trading. His job was limited to studying the crypto market whereas 'DG' manages all the wallets used for crypto trading and the bank accounts linked to that. As per Shiv Prakash Bansal 'DG' is also the person who manages the two accounts na mely Amit Industries and KG Cool Enterprises. On further being asked about the details of DG Shiv Prakash stated that DG has fled the place after search action and Shiv Prakash has lost all the contacts with him. Shiv Prakash was exhibited content from worksheet 'Bank' to explain each entry appearing in the worksheet BANK for further clarity. Shiv Prakash Bansal was asked to provide the details of his clients on be half of whom he has traded in crypto currency. However, he could not provide the details of a single customer/client since the details were maintained by his employee who was handling the wallets and the bank accounts for him, and who has fled the place. Excerpt of his statements are presented be low:

Ans. "AMIT" denotes the bank account in the name of Amit Industries through which on 15.09.2020 proceeds of trading in Crypto Currency has been received and payment has been made to the pa rties who had inve sted in Crypto Currency. As it can be seen at S. No. 1 of the table in the previous question, Rs. 9,40,000 has been received In the bank account of Amit Industries through the Payment facilitator WUNDERBAKED and repayment of Rs. 1,31,614 has been done to SACHIN KUMAR who had invested in Crypto C urrency through me. IT may be noted here that the payment received and the repayment done will not have one-to-one correspondence and the reason being, my clients ask me to invest in certain number or fraction of Cryptocurrencies and I invest in bulk. At the time of realization that is when the proceeds of sale of Crypto Currencies is received in Bank account Amit, amount is transferred in different amounts to different clients as proportionate to their investment in Crypto Currency. The modus operandi of my business is as follows: I do crypto- trading on behalf of my clients. I do not own any Cryptocurrency pertaining to the transactions entered in works heet named "BANK" of the Workbook named "SKY.xlsx". I have earned only commission income during such Crypto transaction on be half of my clients. I study crypto market regularly to know the appropriate time of buying & selling of Crypto Currency so that I can maximize the profits of my clients. However, the technicalities and intricacies of Crypto business is not known to me. In the part of technicality, I am assisted by my employees Dinesh alias DG and Manoj. DG and Manoj are the custodian of 2 bank accounts named Amit Industries and KG Coo l Enterpr ises through which realization of proceeds from sale of Crypto Currencies are done. DG and Manoj manage all the Crypto wallets and the fund flow. In this entire business, my job is limited to enabling a pool of funds by aggregating money from investors/clients, direct DG and Manoj to invest the funds in Cryptoc urrencies at appropriate time and direct him to sell the Cryptocurrencies at appropriate time. After the sale of Cryptocurrencies, the realized amount is transferred to respective clients as proportional to their initial investment.

Q. 75 If at all, the entire narrative w.r.t. the worksheet "SKY", as stated by yo u in the earlier ans wers of this statement is to be believed, it is clearly evident that you are kingpin of this entire operation of Crypto Trading. Therefore, it is logically presumed that yo u must have knowledge about all the Crypto Wallets being used for inve stment and redemption of Crypto Curre ncy on behalf of your clients. So please provide the details of all the crypto wallets being used by you or your team for trading of Crypto Currencies including Wallet ID, Name & Address of Wallet Holder, Name of the Exchange in which Wallet is registered etc. Ans. As stated earlier by me, in this entire operation of Crypto trading I am assisted by persons named Dinesh alias DG and Manoj. DG and Manoj are the person who mainly manage or handle the whole network and setup that is required for Cryptocurrency trading. They also manage and handle the different bank accounts which are used for trading in Cryptocurrency. In the entire operation, my job was limited to bringing in potential investors, studying the crypto market, directing DG or Manoj to buy and sell crypto currency according to the market sentiment. I don't have any information regarding the wallets. The transaction in wallets is looked after by DG and Manoj and the information abo ut the Wallet details, they only k now. However, it may be stated here that I am spearheading the operation. I charge the commission of Rs. 500- 1000 for each bitcoin traded by me.