The HC affirmed the lower appellate authorities' findings that ...

Accommodation Entry Operators Exposed: Tax Liability Traced to Ultimate Beneficiaries Through Detailed Financial Analysis

May 29, 2025

Case Laws     Income Tax     HC

The HC affirmed the lower appellate authorities' findings that the Assessee was a mere conduit for routing accommodation entries. The unexplained credits were determined to be taxable in the hands of ultimate beneficiaries, not the Assessee. No commission income was established for the Assessee, as the Jain Brothers were identified as the actual accommodation entry operators. The court noted minimal variations in bank account balances, supporting the conclusion that the Assessee was used as a pass-through entity. Consequently, no substantial questions of law were found, and the appeal was dismissed.

View Source