Case Number: ITA 71/DEL/2021
Appellant: K.R. Packaging (P) Ltd, New Delhi
Respondent: ACIT Circle-5(1), New Delhi
Assessment Year: 2003-04
Date of Order: 07.07.2023
Order Type: Final Tribunal Order
Case Background:
The case pertains to K.R. Packaging (P) Ltd filing its return of income for the assessment year 2003-04, declaring a loss of Rs. 81,500/-. The Assessing Officer issued a notice under section 148 based on information suggesting accommodation entries were used to channelize unaccounted money. The appellant contested the reopening, alleging procedural errors and lack of jurisdiction.
Key Issues:
Court Proceedings:
The appeal was filed against the order of the CIT(A)-5, Delhi dated 29.07.2015. The tribunal reviewed the grounds raised by the appellant, focusing on errors in law and procedure committed by the CIT(A) and AO. The tribunal’s scrutiny included the authenticity of the accommodation entries and the legality of the assessment order.
Conclusion:
The tribunal concluded that the AO’s actions lacked application of mind, citing the failure to establish the creditworthiness of entry providers and procedural lapses. The order dated 07.07.2023 set aside the assessment order for AY 2003-04, emphasizing the principles of natural justice and the need for valid grounds to reopen assessments.
ITA 71/DEL/2021 – K.R. Packaging (P) Ltd vs. ACIT Circle-5(1), New Delhi
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