Case Law Details
Shaan Construction P Ltd Vs ITO (ITAT Delhi)
ITAT noted that whole exercise carried out by the assessee is simply a devise to introduce unaccounted money through various shell companies in the form of share capital at a premium. The manner of issue of the shares through these companies, the manner of providing confirmation on the letter pad, the manner of maintaining the annual accounts and the manner of submitting the bank accounts on the letter pad or on a computerized print out to give it a semblance of originality to defraud the revenue, proves much more than what is under challenge before us. It shows the whole picture how the accommodation entries are routed through shell companies as share capital to evade the taxes. The whole façade created by assessee shows the real purpose of introducing the unaccounted money of the assessee without payment of taxes.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
1. These are the two appeals filed by the assessee against the quantum addition u/s 68 of the Income Tax Act and penalty u/s 271(1)(c) confirmed by the ld CIT(A).
2. This appeal in ITA No. 4520/Del/2009 is filed by assessee for assessment year 2006–07 against the order of the Commissioner of income tax (appeals) – XI, New Delhi (the Ld. CIT (A)) passed on 21/10/2009 wherein the addition made by the Income Tax Officer, Ward 8 (1), New Delhi (the Ld. AO) of Rs. 5000000/– on account of unexplained share capital and share premium under section 68 of the Income Tax Act vide assessment order passed Under Section 143 (3) of the Income Tax Act (the Act) on 19/12/2008 is confirmed.
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