ITO Vs Saboo Tor Private Limited (ITAT Chandigarh)
The appeal by the revenue concerned Assessment Year 2011–12 and challenged the deletion of an addition of Rs. 2.68 crore made as alleged accommodation entry. The Assessing Officer reopened the assessment after receiving information from the investigation wing that, during a search on the Indiabulls Group on 13 July 2016, it was found that group entities had allegedly taken bogus accommodation bills to book purchases. Sample invoices of suspicious entities lacked details such as material receipt stamps and internal verification, unlike those from non-suspicious entities. The group admitted before the Settlement Commission that it had taken accommodation entries from various parties. Since the assessee had supplied goods to one group entity, IINFC Ltd., and received Rs. 2.68 crore, this transaction was marked as suspicious, leading to reopening of assessment and addition due to lack of confirmation from IINFC Ltd.
The assessee submitted documentary evidence showing that sales were genuine and payments were received through banking channels. It provided ledger extracts, invoices, bank statements, VAT returns, delivery documents, VAT assessment order, C-Forms, and certificates from the Sales Tax and Excise Department. The assessee argued that it was not a beneficiary of any accommodation entry and that the sales had been duly recorded and taxed.
