Case Law Details
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.
After considering rival submissions, the Tribunal held that the assessee deserved an effective opportunity to present its case. It directed the AO to furnish complete details and information relied upon, including the nature of the alleged accommodation entries. The assessee was directed to submit explanations and supporting material, particularly in relation to the three bank entries already noted by the AO. The AO was instructed to re-examine the issue afresh in accordance with law after considering the material from both sides.
Accordingly, the appeal was treated as allowed for statistical purposes, and the matter was remanded for fresh adjudication.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 10/10/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2019-2020.
2. The assessee, in this appeal, is aggrieved by the action of the Ld.CIT(A) in confirming the addition made by the Assessing Officer (AO) of Rs.2,00,184/-, allegedly received by the assessee as an accommodation entry through “Radhika & Brothers” an associate-concern of Sanjay Govindram Agarwal. As per the information available to the AO, the said concern was involved in providing accommodation entries and the assessee had received accommodation entries from the said concern of Rs.2,00,184/-. The AO, therefore, reopened the assessment of the assessee u/s.147 of the Act.
3. During the assessment proceedings, the assessee denied to have received any such accommodation entry. The AO, however, referred to three bank statements, whereby, three amounts had been credited to the account of the assessee, i.e. Rs.2,75,518/-, Rs.2,87,619/- and Rs.12,173/- on 28/06/2018 by way of cheque clearing from “Radhika & Brothers”. The AO, however, could not bring any evidence on record in respect of amount over and above the aforesaid three transactions. The AO, however, made the addition of the entire amount of Rs.2,00,814/-, as mentioned in the information, as income of the assessee received on account of accommodation entries as mentioned above. Though the assessee preferred appeal before the ld.CIT(A), however, assessee could not prosecute the same and, therefore, the appeal was decided against the assessee ex-parte of the assessee.
4. Before us, the Ld. Counsel for the assessee has submitted that, in this case, the entire addition has been made/confirmed by the lower authorities merely based on uncorroborated information received by the AO from Investigation Wing (IW). He has submitted that even the assessee has not been provided with any details showing the alleged transactions, the date of transactions and even the nature of transactions. He has submitted that the three entries referred to by the AO were on account of receipts of sale made by the assessee. He has submitted that the assessee has never received any such amount of Rs.2,00,814/- from any party. He has further submitted that the assessee may be given an opportunity to present its case before the AO.
5. After hearing the rival contentions of the parties, we are of the view that, in this case, the assessee deserves an opportunity to present its case before the AO. The AO is directed to furnish the details/information received by him regarding details and nature of accommodation entry received by the assessee and, thereafter, the assessee will also furnish the relevant details including the explanations about the three entries recorded by the AO in the assessment order, thereafter, the AO will decide the issue afresh in accordance with law.
6. In the result, the appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced in the Open Court on 27/01/2026.
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