Acit, New Delhi vs M/S. Devine Infracon Pvt. Ltd., New ... on 28 October, 2024
"3. The flow of funds indicate that the after
purchase of company the funds have moved to
Jagat Group which conclusively prove that the
unaccounted money was used by the persons,
concerns and associates of Jagat Group to obtain
accommodation entries. The flow of funds as
stated above as on 31.03.2013 is almost the same
as the net worth of the company at the time of
purchase of shares of M/s Index Securities and
Research P Ltd as depicted in the preceding para
i.e. Rs.104.66 crores. As the funds in the form of
accommodation entries were immediately
transferred to various Jagat Group beneficiaries
the same is being taxed in the hands of such
beneficiaries on substantial basis to the extent of
funds transferred to their books. It was nothing
but accommodation entry bought by the Jagat
group/ and their associates from S. K. Jain and
V. K. jain and the same were given to
beneficiaries. The shares of M/s Index Securities
and Research P Ltd were purchased by various
persons and relatives of Jagat group from
companies owned/ controlled by Shri S. K. Jain,
his wife Preeti Jain and his brother as per the
chart given in the preceding paras, at Rs. 2.25
against the book value of Rs. 91.47. As discussed
above the shares were purchased for the purpose
of accommodation entry by way of paying
unaccounted money to S K Jain and his brother
which is proved beyond doubts by way of various
evidences collected during the searches conducted
at the premises of Jagat groups and Jain brothers
and the statement of Shri Rajesh Agarwal. The
difference in share prices (book value-purchase
price ) is also being taxed in the hands of share
holders on protective basis as they are also
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beneficiaries to that extent. The total
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consideration paid for shares also amounts to Rs.
105 crores (91.47*115000000=105,19,05,000).
The above facts further corroborate the findings
discussed above.