×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
This appeal by assessee has been directed agonist the order of the Ld. CIT(A)-22, New Delhi, Dated 31st May 2018, for the assessment year 2009-2010.
2. I have heard the Learned Representatives of both the parties and perused the material available on record.
3. Learned Counsel for the Assessee did not press Ground Nos.2 and 3 of the appeal. The same are dismissed as not pressed. On the remaining grounds assessee challenged the reopening of assessment under section 148 of the Income Tax Act, 1961, addition Rs.15 lacs under section 68 of the Income Tax Act, 1961 and addition of Rs.30,000/- on account of commission.
4. Briefly the facts of the case of that assessee is a Company which was incorporated on 3rd March 2005 under the Companies Act. The assessee-company filed its return of income declaring loss of Rs.19,390/-. In this case, an information was received from the Investigation Wing (DIT Investigation)-2, New Delhi, Dated 12th March, 2013. After receipt of information from the Investigation Wing, New Delhi, enquiries were made. The return of income filed by assessee was downloaded from ITD-System and same was examined which shows that assessee has received fresh share application money of Rs.15 lacs. In the information received from the Investigation Wing Dated 12th March 2013, it was mentioned that search operation was carried out in the case of Shri SK Jain Group of cases wherein after intensive and extensive enquiry and examination of the documents seized during the course of search, it was noticed that the said group was involved in providing accommodation entries to the persons which were named in the report. The assessee-company also figured in the said list as one of the beneficiary. The A.O. recorded reasons for reopening of assessment and issued notice under section 148 on 22nd March 2016 with the approval of the Competent Authority. The assessee was asked to file return of income. The assessee later on filed letter stating there in that original return filed may be treated as return having been filed in response to the notice under section 148 of the Income Tax Act. The assessee through his representative attended the assessment proceedings before the A.O. The A.O. noted that assessee has received accommodation entry of Rs.15 lacs from intermediary Shri SK Jain. A part of the cash was used to issue cheque in favour of the assessee. It was noted that assessee has received Rs.15 lacs from M/s.Victory Software Private Limited on 28th March, 2009 through cheque drawn on Axis bank through the mediator Shri Rishi. The A.O. gave show cause notice to the assessee.
The assessee, however, submitted that it has not received any accommodation entry. The assessee also provided address of the Investor. The A.O. in order to verify the genuineness and creditworthiness of the Investor, issued summons under section 131 of the Income Tax Act at the address given by the assessee. However, the Inspector reported that no such company is available at the given address. The assessee has provided another address. The A.O. issued summons under section 131 of the Income Tax Act which was served upon the Investor-company. In response to the summons under section 131 of the Income Tax Act, no Director of the Investor appeared. However, Shri Rajinder Kumar, Accountant, of the Investor-company attended the proceedings who was authorised by the Director of the Investor-company to appear before A.O. whose statement was recorded by the A.O. The A.O, however, noted that Shri Rajinder Kumar stated that he has no idea about the transaction or investment made because he has joined the service of the Investor-Company only in 2010. The assessee was asked to prove the creditworthiness of the Investor and genuineness of the transaction and also