Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 950 - AT - Income TaxProfit charged on accommodation entries transactions - Held that:- As the facts emerge, the assessee has filed his returns of income u/s 153A on the basis of audited statements which are found to be bogus and unreliable. Therefore, the income offered by the assessee in such returns becomes assessee’s own offer. Apropos assessee’s business, it has not been disputed that the assessee was actually engaged in providing accommodation entries and not in real business transactions. The findings of assessing officer and CIT(A) that assessee could not substantiate his claim about accommodation entries and assessment of profit @ 0.5%. Assessee has not been able to substantiate the rate of income from accommodation entries except making a general assertion that the profit charged on accommodation entries transactions is generally 0.5%. The providing of accommodation entries amounts to running a parallel economy and is a sort of money laundering, which is against public policy. Therefore, assessee in any case cannot get any deduction for any estimated expenses in this behalf. Since assessee could not substantiate the rate of providing accommodation entries, the assessing officer is well within his rights to estimate the income of the assessee. This estimate in ordinary circumstances cannot be interfered with unless the assessee makes out a case of arbitrariness and unreasonable estimate, which has not been established. The estimate as arrived at by assessing officer @ 2% and confirmed by CIT(A) is reasonable and cannot be called arbitrary.
|