If assessee merely acted as a conduit without any right in money, no addition can be made u/s 69A

Brief of the case:

In the case of M/s Bhagwati Motors Vs. ITO Chandigarh bench of ITAT have held that Assessee merely acted as a conduit without any right in money, therefore, no addition under section 69A of the Act could be made against the assessee. Assessee took money through cheque from one company and transferred the whole amount in bank account of another company, without any commission/consideration. CIT (A) dismissed appeal filed by assessee. On further appeal ITAT deleted the additions after observing that assessee is only a conduit for transfer of money.

Facts of the case:

• Assessee is in the trading of oil and lubricants and filed return of income at Rs. 48,990/- which was processed u/s 143(1).

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