This article examines the tribunal’s ruling in the case of Deepak Agarwal vs. ACIT, CC-13, Delhi for the assessment year 2014-15, discussing the penalties imposed for accommodation entries.
Deepak Agarwal faced penalties under Section 271(1)(c) of the Income Tax Act due to accommodation entries disguised as loans and advances, with the imposition of a 2% commission for these entries.
The case involved multiple assessment years, specifically addressing issues for 2014-15, focusing on penalties for undisclosed income through accommodation entries.
The tribunal recognized the complexities due to associated appeals from the recipients of accommodation entries and remanded the issue back to the Assessing Officer for a thorough reevaluation in light of all related appellate decisions.
The tribunal’s decision to remand the case back to the Assessing Officer emphasizes the need for precise assessment in cases involving accommodation entries and related penalties, affecting the dynamics of tax litigation.
Tax Penalty on Accommodation Entries: Deepak Agarwal vs. ACIT, CC-13, Delhi (ITA 1661/DEL/2021)
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