Aravali Infrabuild Private Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that approving authority has approved the assessment order as per provisions under section 153D of the Income Tax Act. Accordingly, appeal challenging the same stands dismissed.
Facts- A search and seizure operation u/s 132 of the Income-tax Act, 1961 was conducted on 23.07.2015 and subsequent dates in different business and residential premises of Deepak Agarwal, Mukesh Kumar and others, group of cases based at Delhi. It was found by the Investigation Wing that a group of entry operators were providing accommodation entries to beneficiaries. AO observed from the record that many incriminating material/documents were found relating to the assessee also.
Based on the incriminating material found during the search and verification during assessment proceedings, the AO came to the conclusion that assessee is only a shell company operated and managed by Deepak Aggarwal for providing accommodation entries such as share capital, share application money, share premium, sale/purchase of security loans etc. in lieu of certain amount of commission.
AO passed the order u/s 153C r.w.s. 143 (3) of the Act by making addition of Rs.36,28,295/- on protective basis to the extent of 80% and addition on substantive basis of Rs.9,07,073/- to the extent of 20% on account of commission income and Rs.7,50,793/- on account of expenses disallowed u/s 37 of the Act.
