Case Law Details
Minakshi Builders Vs CIT (ITAT Pune)
ITAT Pune held that information from the office of DIT (Inv.)-II is a tangible information enabling AO to form a belief that income has escaped assessment and hence proceedings of re-assessment justified.
Facts- Based on the information that appellant is a beneficiary of accommodation entries of bogus unsecured loan and advances, a notice u/s 148 of the Income Tax Act, 1961 was issued and the case was taken for scrutiny assessment.
Despite several notices of hearing, the appellant only provided a bald explanation stating that the loans and advances were booking advance of the flats. He only filed copies of Balance Sheet, Deed of Partnership of appellant and confirmation letters of closing balance as on 31.12.2012 in his books of account. The assessee had not discharged the onus of proving the genuineness of the transactions, identity of creditors and creditworthiness of the investors to make the investment in question to the satisfaction of AO. Therefore, AO had brought to tax the accommodation entries and completed the assessment vide order dated 3 1.03.2015 passed u/s 144 r.w.s. 147 of the Act.
Being aggrieved, an appeal was filed before the ld. CIT(A) which was dismissed. Being aggrieved, the present appeal is filed.
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