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2015 (5) TMI 542 - AT - Income TaxUnexplained investments - Unexplained credits received - accommodation entries - deposits in appellant's bank accounts received from various intermediaries operated by Sh. SK Gupta to provide accommodation entries to various beneficiaries against cash received from them - CIT(A) confirming the addition made u/s 68 - Held that:- There was no explanation filed before the AO except filing the copy of the bank pass book and it was only during the course of proceeding before the CIT(A) the assessee company tried to explain that the cash deposits were made out of the money belong to the beneficiary to whom accommodation entries were provided and the same explanation was reiterated before us. In our considered opinion, this would not meet the requirement of Section 69 of the Act. There was no material on record that Mr. S.K. Gupta who acted as intermediary between the assessee company and the beneficiary of accommodation entries had filed the confirmation letter stating that amount deposited in the Bank account was provided by him. Nor, the order of the Hon’ble Settlement Commission establishes the availability of cash with Mr. Gupta when the cash was deposited in the bank accounts of assessee company. This issue is essentially based on the facts. The interest of justice would be met, if the matter is restored to the file of the Assessing officer with a direction that the Assessing Officer shall verify the disclosure made in the case of Mr. S.K. Gupta before the Hon’ble settlement commission and whether the amount of cash deposited in the present case is covered by such disclosure. If the cash deposited in the assessee case is covered, in the disclosure of Mr. S.K. Gupta before settlement commission, the addition may be deleted. See M/s KSA Chits Pvt. Ltd. Versus Dy. Commissioner of Income Tax [2015 (3) TMI 881 - ITAT DELHI ] - Decided in favour of assessee for statistical purposes.
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