Accommodation entry: Reassessment based on mere inquiry in case of 3rd party not justified

M/s Sharmilee Furnishing P. Ltd Vs. I.T.O (ITAT Delhi)

There is no dispute to the fact that the department conducted inquiry in the case of third party where the name of the assessee was also written to have received accommodation entry and accordingly, the AO reached to a conclusion while recording reasons that the income of the assessee has escaped assessment and it is a fit case for initiation of proceedings u/s 148 of the Act and the case was selected for scrutiny and assessment was made by making necessary additions.

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