Date Filed: January 9, 2020
Order Pronounced on: July 13, 2022
This case involves a legal battle against the Income Tax Department’s assessment for the year 2015-16, where the appellant, Ram Prakash Bhatia, contests tax additions linked to accommodation entries that were allegedly falsely attributed to him.
Similar to related cases from other assessment years, this appeal raises concerns about the authenticity of the bank accounts and transactions recorded under Bhatia’s name. The core issue revolves around whether the accounts genuinely belonged to Bhatia or were falsely linked to him by the assessing authorities.
During the proceedings, arguments focused on the commission rates applied to the transactions and the repeated nature of these entries across various accounts, which were disputed by Bhatia. The Department justified the low commission rate considering the repetition of entries.
The Tribunal, after reviewing all evidence and arguments, upheld the tax additions, dismissing Bhatia’s appeals. It was held that the accounts, although registered under different names, were operated by Bhatia and were instrumental in facilitating accommodation entries, thereby making him liable for the associated tax implications.
This case underscores the complexities of tax assessments involving accommodation entries and highlights the rigorous examination by tax authorities and tribunals in determining the rightful ownership and liability in such cases.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform