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2021 (5) TMI 860 - AT - Income TaxUnexplained expenditure u/s. 68 - unexplained expenditure taxed u/s. 69C v/s unexplained cash credit to be taxed u/s.68 - AO observed in the assessment order that as per information available on record, it showed that one Shri Sanjeev Kumar Singh is an entry operator and had provided various bogus accommodation entries for commission through his erstwhile companies/partnership firms and proprietorship concerns - HELD THAT:- We find that the Revenue had not brought any evidence on record as to who Shri Sanjeev Kumar Singh is and how he is connected with the assessee herein. The primary onus has been duly discharged by the assessee by stating that he does not know who Shri Sanjeev Kumar Singh is and assessee had also specifically stated in writing that there are no business dealings with Shri Sanjeev Kumar Singh. While this is so, the primary onus has been discharged duly by the assessee, the onus shifts back to the ld. AO who is duty bound to provide all the necessary evidences/materials that are available with him vis-à-vis the assessee thereon and confront the assessee with those evidences, if any, linking the assessee. Addition has been made by the AO towards unexplained expenditure u/s. 68 - As per the provisions of the Act, the unexplained expenditure will get taxed u/s. 69C of the Act and unexplained cash credit will get taxed u/s. 68 - The requirement of these two sections are totally separate and distinct. Moreover, the ld. AO had also observed in his assessment order that during the course of search and seizure action conducted in the case of Shri Sanjeev Kumar Singh u/s. 132(1) of the Act, it was found that he was an entry operator and had provided bogus accommodation entries to various beneficiaries for earning commission income through his entities. Nowhere in the assessment order, the ld. AO had brought on record with supporting evidences that whether the assessee had received any loans or had received any accommodation bills from Shri Sanjeev Kumar Singh Also the nature of transaction is also not mentioned in the assessment order; whether the same is payment or receipt is also not discernible from the assessment order. When all these points were duly pointed out before the ld. CIT(A), we find that the ld. CIT(A) had not even bothered to address any of the issues but merely relied on various case laws that are totally irrelevant to the facts of the issue and proceeded to confirm the addition made thereon. Appeal of the assessee is allowed.
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