This article discusses the tribunal decision in the case of Deepak Agarwal vs. ACIT, CC-13, Delhi, where penalties were imposed on accommodation entries for the assessment years 2012-13 to 2014-15.
Deepak Agarwal appealed against the penalties levied on him for providing accommodation entries in the form of loans and advances, which were deemed as commissionable income.
The appeal was based on multiple assessment orders by the CIT(A)-23 dated 28.02.2020, covering three consecutive assessment years. The core issue was the imposition of penalty under Section 271(1)(c) due to the provision of said entries.
The tribunal decided to restore the appeals to the Assessing Officer for reconsideration in light of the appellate decisions of the recipients of these entries. The AO was directed to reassess the penalties considering these decisions and ensure a fair hearing is provided to the assessee.
The case highlights the complexities involved in determining penalties for accommodation entries and underscores the need for thorough examination by tax authorities before finalizing such penalties.
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