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2018 (8) TMI 652 - AT - Income TaxReassessment u/s 147 - disallowance of expenses u/s 37(1) - bogus expenditure - recording of reasons for satisfaction - Revenue submitted that, as per report of Investigating wing, assessee is one of the beneficiary of accommodation entry from concerns of S.K. Gupta group - Held that:- We have also perused reasons recorded for reopening the assessments, wherein there is specific information regarding assessee before us, of having accepted accommodation entry bills, which could not have been verified without calling for necessary details. Further in order to verify the information received by Ld.AO issued notice under section 147 which was necessary to ascertain, if there has been any escapement of income. - Reopening of assessment confirmed - Decided against the assessee. Enhancement of income by the CIT(A) in appellate proceedings - CIT (A) has in a way enhanced addition by charging 2% commission for providing accommodation entries to assessee. - Held that:- It is observed that assessee was not given any notice of enhancement by Ld.CIT (A), thereby not following due process of law, as per section 251 of the Act. We are therefore inclined to delete addition made by Ld.CIT (A) to of 2% as commission for providing accommodation entry to assessee. Decided in favor of assessee partly.
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