Document Fragment View

Matching Fragments

3. For the sake of convenience, the facts of ITA No. 3185/Del/2015 are narrated hereunder:-

A search and seizure operation u/s 132 in the case of M/s BPTP Ltd. (earlier known as M/s Business Park and Town Planners Ltd.) group of Companies was carried out at 7/12/2010 and finally concluded on 5/2/2011. Notice u/s 143 (2) of the Income Tax Act, 1961 was issued to the assessee on 13/9/2012. The assessee had filed its return of income on 30/09/2011 declaring total income at Nil. The detailed questionnaire dated 10/10/2012 was issued. In response to the said notices, the assessee's representative appeared and submitted the details and clarifications which were placed on record. The Assessing Officer observed that BPTP Group is headed by Shri Kabul Chawla, son of Shri Satish Chawla. Ownership Company of the group, M/s BPTP Ltd. was incorporated in 2003 and is a leading real estate developer in NCR region. The group is one of the major players in development of integrated town ship, residential projects, IT Parks, Sez, Hospitality Sectors etc. in NCR region comprising of Delhi, Noida, Gurgaon and Faridabad. The group had also acquired a huge track of land from APIIC at Hyderabad for development of the project. The group is having massive land bank at Faridabad known as BPTP Park land. During the course of search action it was seen that three companies of the group viz. M/s Designing Infracon Pvt. Ltd., M/s Delicate Realtors Pvt. Ltd and M/s Pavitra Realcon Pvt Ltd. have shown a total amount of Rs.325.23 crores as "advance against property", from three companies namely M/s Attractive Finelease Pvt. Ltd, M/s Ashish Capital Pvt. Ltd, M/s Aquiss Pvt. Ltd. On the basis of the information in the possession of the department, Directors of these three companies were confronted with the fact that the above three companies were accommodation entry providing companies and have given the above amount by converting unaccounted cash after routing them through a series of transactions. Directors of the three companies M/s Designing Infracon Pvt. Ltd, M/s Delicate Realtors Pvt. Ltd & M/s Pavitra Realcon Pvt Ltd., namely Shri Sanjiv Kumar, Sh. N. K. Jain and Sandeep Sehgal respectively in the statements recorded on oath u/s 132 (4) accepted that they were not in a position to explain the receipts of above amount and hence came out with a voluntary disclosure of Rs. 325.23 to be their unaccounted income for the Financial Year 2010-11 (Assessment Year 2011-12). As per the statement dated 08.04.2010 of Shri Sanjiv Kumar, who was a Director in all the above three companies, he accepted that the above income was received by cheques from the above three companies for collaboration of future projects. Since, they were not able to explain and support the receipts with evidences, they accepted the same to be their income earned during the year which was not entered in the books of accounts in the current Financial Year. Therefore, to avoid any penalty, litigation and prosecution and to buy peace of mind they accepted this income. Thus, total amount declared was as under:-

b) Now I will examine the evidences gathered during the search at the premises of Jain brothers as well as at the premises of the appellant & BPTP group of cases relating to these additions. As discussed in earlier para graph seized annexure A- 10 & A-II contained date wise receipt of cash by Jain Brothers from one Sh. Ram Prasad. Total of cash receipt as per the cash book comes Rs. 345.19 Crores for the period from 27/05/2010 to 30109/2010. Ld. AR has totaled up all these transaction and argued that total date wise such of all cash received comes to Rs. 256.13 Crores instead of Rs. 345.19 Crores. The instances quoted by the assessing officer are from 27/05/20 I 0 to 29/06/2014. The assessing officer has mentioned this date upto 30109/210 (last date of receipt of money) by these 3 companies of BPTP group. Therefore, the seized documents found from the premises of Jain Brothers where cash is received from Sh. Ram Prasad, explain the source of cheques given to three companies of BPTP group, as apparently the date of receipt of cash from Ram Prasad tallies with the cheque given by the three companies of Jain brother namely M/s Aquiss Pvt. Ltd., M/s Aashish Capital Pvt. Ltd. & M/s. Attractive Finlease Pvt. Ltd to 3 corresponding companies of BPTP groups after rotating through various layers of bank transactions.

The assessing officer has correlated Sh. Ramprasad mentioned in seized material as an employee of BPTP Ltd. on the basis of two evidences. First evidence is a seized document found from the premise of BPTP group inform of a letter issued by BPTP stating that Sh. Ramprasad is an employee of Mis. BPTP Ltd. and has been given accommodation at 7, Barakhamba Road. Secondly, mobile no. of Sh. Ramprasad was obtained during the search at the premise of BPTP as '9871262713' and call details were obtained in respect of mobile no. 98917-09895 belonging to Sh. Surendra Kumar Jain which shows that there is frequent conversation between Sh. Surendra Kumar Jain and Sh. Ramprasad on the date of receipt of cash from Sh. Ramprasad. The very fact that Surendra Kumar Jain was calling Sh. Ramprasad, employee of BPTP Ltd. and on the same date cash is received by Sh. Surendra Kumar Jain as per the seized document proves that 'Ramprasad ' mentioned in the seized document of Jain Brothers is employee of BPTP Ltd. Further name of Sh. N.K. Jain, another employeelcompany secretary of BPTP Ltd. is also appearing in seized material in Annexure A-II where he is shown as mediator for the transaction which proves that the cash payment and obtaining cheque from Jain Brothers was arranged by Sh. Ramprasad and Sh. N.K. Jain ofBPTP group.

The Hon'ble SC has laid down that such defects are capable of cure by setting aside the orders for re-doing it.

9. As regards the merit of the case is concerned, the Ld. DR submits that during search and post search enquiries, in case of BPTP group, there was no warrant u/s 132 against these companies, these were companies running from addresses belonging to BPTP group and employees of BPTP group are directors.

The Ld. DR further submits that in case of BPTP, overwhelming incriminating material was seized/gathered which indicated unaccounted cash transactions.