2022 (11) TMI 892 - AT - Income Tax
Addition u/s 68 - bogus accommodation entry - HELD THAT:- The name of the party and PAN number in the information received is totally different that of the assessee. Hence, by no stretch of imagination, it can be said that it is a curable defect. In our considered opinion, the defect is fatal. Assessee’s objections have not been disposed off. This is another flaw which is fatal and the assessment is liable to be quashed on that count. As regards the merits of addition the only case of the Revenue is that these persons have earned small amount so they are not capable of giving loans - these persons have given confirmation and no adverse material is available with the Revenue.
There is no presumption that the people having smaller income cannot make small savings. Moreover, there is no linkage on record of these persons with White Collar Management Pvt. Ltd., the company allegedly providing bogus entries. Hence, on merits also, the addition is totally on hypothesis which is not sustainable in law. Appeal filed by the assessee stands allowed.