Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 285 - AT - Income TaxDeletion u/s 68 - Share capital and share application money – Commission income earned from activities of providing accommodation entries - Held that:- Assessment was completed u/s 144 and therefore application for admission of additional evidence under Rule 46A was filed with Ld. CIT(A) and CIT(A) after inviting remand report from AO has held that share applicants were having PAN numbers and they have admitted to have made investments in the company and we also find that share applicants were directors or their relatives - the AO has even recorded her statement - CIT(A) has rightly deleted the addition – The A.O. had calculated the alleged income by applying a notional rate of 2.5% on the amount of deposits in the bank account - Other than deposits in the bank account there is no proof with the A.O. to arrive at the conclusion that assessee was earning commission income - CIT(A) has rightly deleted the same - Decided against revenue. Addition made on protective basis – Held that:- There was no evidence available on record to prove /establish that the assessee was engaged in providing accommodation entries - there is no material in place to prove that the assessee was engaged in providing accommodation entries in respect of credits in the bank account, it was justified on the part of CIT(A) to convert the protective addition of Rs.,36,05,233/- into substantive addition - the addition should have been restricted to a sum of ₹ 10 lacs for entries referred to in the reasons recorded by the AO u/s 148 - the total addition of ₹ 36,05,233/- is set aside and restrict the addition only to the extent of ₹ 10 lacs being the accommodation entries noted in the reasons recorded by the AO – thus, the matter is remitted back to the AO for fresh adjudication - as no detailed inquiry or investigation has either been made by the AO or CIT(A) in respect of these two entries aggregating to ₹ 10 lacs - Decided partly in favour of revenue.
|