Oracle Granito Limited Vs DCIT (ITAT Ahmedabad)
The Income Tax Appellate Tribunal allowed the assessee’s appeal for statistical purposes and remanded the matter to the Assessing Officer (AO) for fresh examination of an alleged accommodation entry addition for Assessment Year 2019–20. The appeal challenged the order of the National Faceless Appeal Centre, which had confirmed an addition of ₹2,00,184 based on information received from the Investigation Wing.
The AO had reopened the assessment under Section 147 of the Income Tax Act, 1961, on the basis of information alleging that the assessee had received accommodation entries through “Radhika & Brothers,” an associate concern linked to an alleged entry provider. During assessment proceedings, the assessee denied receiving any such accommodation entry. The AO relied on three bank credits—₹2,75,518, ₹2,87,619, and ₹12,173—credited on 28.06.2018 through cheque clearing from the said concern. However, no evidence was brought on record to establish receipt of the alleged amount beyond these three transactions. Despite this, the AO added the entire amount mentioned in the Investigation Wing information as unexplained income.
The assessee’s appeal before the first appellate authority was decided ex parte due to non-prosecution, resulting in confirmation of the addition. Before the Tribunal, the assessee contended that the addition was made solely on uncorroborated Investigation Wing inputs, without providing transaction-wise details, dates, or nature of the alleged accommodation entries. It was further submitted that the three bank credits identified by the AO represented sale proceeds and not accommodation entries, and that the assessee never received the alleged amount. The assessee sought an opportunity to place relevant material before the AO.
