This article explores the tribunal decision in the case of Deepak Agarwal vs. ACIT, CC-13, Delhi, concerning penalties imposed for accommodation entries for the assessment year 2013-14.
Deepak Agarwal faced penalties under Section 271(1)(c) of the Income Tax Act due to accommodation entries portrayed as loans and advances, with a commission charged at 2% for these entries.
The case involved multiple assessment years, but specifically for 2013-14, the issues were similar across the years, focusing on penalties for undisclosed income through accommodation entries.
The tribunal acknowledged the complexity due to associated appeals from the parties receiving accommodation entries and restored the issue back to the Assessing Officer for a fresh decision, emphasizing the need for a comprehensive reevaluation in light of appellate decisions affecting the case’s dynamics.
The tribunal’s decision to remand the case back to the Assessing Officer highlights the procedural challenges and the necessity for accurate assessment in cases involving accommodation entries and associated penalties.
Tax Penalty on Accommodation Entries: Deepak Agarwal vs. ACIT, CC-13, Delhi (ITA 1660/DEL/2021)
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