Appellant: Shri Deepak Singhal, 249, Bharat Apartments, Plot No.20, Sector-13, Rohini, Delhi-110 085
Respondent: Income Tax Officer, Ward-36(4), New Delhi
Representatives: Appellant by Mr. Tarun Rohatgi, CA; Respondent by Mr. Vivek Kumar Upadhyay, Sr. DR
Date of Hearing: 10/08/2023
Date of Pronouncement: 12/10/2023
PER YOGESH KUMAR U.S., JM: This appeal by the Assessee challenges the decision of the Commissioner of Income Tax (Appeals)-Delhi-13, dated 28/02/2020, for Assessment Year 2015-16. The core dispute revolves around additions made under Section 68 of the Income Tax Act in respect of various unsecured loans and alleged accommodation entries linked to fake/shelter companies.
During scrutiny, the AO identified several loans recorded in the assessee’s books which appeared dubious due to connections with known shell entities. Despite numerous documents provided by the assessee to establish the genuineness and creditworthiness of these loans, the AO rejected these claims, leading to significant tax additions.
The CIT(A) largely upheld these additions, prompting this appeal. The ITAT, after considering the submissions and evidence, has set aside the CIT(A)’s decision, remanding the case back to the AO for a comprehensive re-examination. The tribunal stressed the need for a thorough reassessment, taking into account all evidentiary documents provided by the assessee.
This case highlights the complexities involved in distinguishing genuine financial transactions from accommodation entries, which are often used to evade taxes. The tribunal’s decision opens the door for a more nuanced examination of the facts, potentially setting a precedent for similar cases.
Order pronounced in the open court on 12th October, 2023.
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