Case Number: ITA 185/DEL/2020
Appellant: Ram Prakash Bhatia, New Delhi
Respondent: Assistant Commissioner of Income Tax, Central Circle-05, New Delhi
Assessment Year: 2011-12
Case Filed On: 2020-01-09
Order Type: Final Tribunal Order
Date of Order: 2022-07-13
Pronounced On: 2022-07-13
The case involves Ram Prakash Bhatia of New Delhi filing an appeal against the Assistant Commissioner of Income Tax, Central Circle-05, New Delhi for the assessment year 2011-12. The appeal was filed on January 9, 2020, and a final tribunal order was pronounced on July 13, 2022.
Hearing Date: July 11, 2022
Panel: Dr. B. R. R. Kumar, Accountant Member, and Sh. Anubhav Sharma, Judicial Member
The hearing was conducted with Sh. Gaurav Dudeja, Senior Departmental Representative (DR), representing the respondent. Unfortunately, the appellant was not present.
The appellant raised several grounds of appeal related to the alleged accommodation entries facilitated through his and various other’s bank accounts, challenging the legality and factual basis of the additions made by the tax authorities.
During a survey carried out under section 133A of the Income Tax Act on August 8, 2014, it was discovered that the appellant allegedly operated various proprietary concerns and firms that were used to give accommodation entries to various entities over multiple years. This resulted in substantial taxable entries which the appellant contested.
The Department had listed several firms and proprietary concerns allegedly used by the appellant for these purposes. The total amount of these entries across different assessment years was claimed to be substantial, leading to significant tax implications.
The appellant argued that several bank accounts cited by the tax authorities did not belong to him or his associates and that the entries related to these accounts were wrongly included in his taxable income.
The respondent defended the assessment and argued for the maintenance of the additions based on the detailed operation of these accounts, highlighting the systemic use of such accounts for accommodation entries which justified the tax claims.
The tribunal reviewed the extensive submissions and evidence provided, focusing on the lists of firms, the accounts used, and the nature of transactions conducted through these. Despite the appellant’s absence at the hearing, the tribunal took into consideration the submissions made on his behalf and the detailed documentation provided by both parties.
Ultimately, the tribunal upheld the tax authorities’ position, confirming that the operations and transactions reported involved the appellant and warranted the tax assessments and additions made.
In the result, the appeal of Ram Prakash Bhatia was dismissed, supporting the findings and additions made by the tax authorities concerning the accommodation entries and associated tax implications.
The order was pronounced in the open court on July 13, 2022.
Note: This case summary is based on the details and judgment provided in the final tribunal order of the Income Tax Appellate Tribunal, Delhi Bench ‘H’.
Ram Prakash Bhatia, New Delhi vs ACIT Central Circle-05, New Delhi – Appeal on Accommodation Entries
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