Amit Anand Vs ITO (ITAT Delhi)
The assessee’s case was reopened u/s 147 based on investigation information alleging accommodation entries of about ₹50.50 lakh routed through entities controlled by an entry operator. During assessment, the AO treated ₹50.90 lakh credited in the bank account as unexplained money u/s 69A on the ground that the assessee failed to substantiate the genuineness of transactions and documentary evidence regarding sale of food grains. The CIT(A) confirmed the addition relying on statements of alleged entry operators admitting that bank accounts were used to route unaccounted transactions.
Before the Tribunal, the assessee contended that the receipts represented genuine sales executed through commission agents in the anaj mandi and were duly recorded in audited books. The ITAT noted that the AO had accepted purchases but rejected sales without invoking section 145 or rejecting the books of account, and the transactions were through banking channels. Considering that the sales were recorded but supporting evidence was not fully satisfactory, the Tribunal held that the entire addition u/s 69A was excessive. In the interest of justice, it restricted the disallowance to 10% of purchases instead of sustaining the full amount, thereby partly allowing the appeal
FULL TEXT OF THE ORDER OF ITAT DELHI
