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2016 (12) TMI 806 - AT - Income TaxDisallowance on account of 'accommodation entries' - whether the assessee does not have any business activity - Held that:- AR has adduced the proof by showing the I.T return for the previous year that the so-called assessee company was in existence. The assessee also produced before us the object clause of the memorandum of Association, date of incorporation, comparative chart of revenue earned by the company and lease agreement where the registered office of the company is situated. All these evidences show that the company was in existence - Decided in favour of assessee Disallowance of expenses on the ground that the assessee company was not engaged in any activity - Held that:- The assessee has shown before us the object of the company by way of its memorandum of association. The assessee has also demonstrated before us the previous years figures of income and expenditure by way of its P and L account. The assessee company since its inception/incorporation i.e on 11-11-1994 has been doing its business. Before us the assessee has also filed the comparative chart of the revenue receipts during the previous and subsequent years. The ld.AR of the assessee has also shown before us the copy of lease agreement of the building, where the company's registered office is situated. On verification of the documents/evidences as submitted by the assessee before us, we are of the view that there is business activity.We find that the matter in hand requires further examination by the AO. Therefore, it is appropriate to remit the matter/case to his file to examine the details of expenditure and receipts afresh as submitted by the assessee before us.
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