Shivkripa Devcons Private Limited Vs ITO (ITAT Indore)
Bogus Entry Theory Collapses – ITAT Deletes ₹78 Lakh Addition u/s 68- Once Genuineness Established in Earlier Cases, 68 Addition Can’t Survive – ITAT Indore Rules
Assessee filed its original return declaring ₹49,570. Based on information from the Investigation Wing, the Department found that Assessee had received ₹78,00,000 as accommodation entries from M/s Jay Jyoti India Pvt. Ltd. (₹70L) & M/s Jayant Securities Pvt. Ltd. (₹8L), both allegedly controlled by Sharad Darak group. The case was reopened u/s 147 after recording reasons & approval; notice u/s 148 was issued, followed by notices u/s 142(1) & 143(2). After considering submissions, AO concluded that these were bogus companies providing accommodation entries, & added ₹78,00,000 u/s 68 r.w.s 115BBE. CIT(A) upheld the addition & dismissed the appeal.
Before Tribunal, Assessee argued that the issue was fully covered by multiple decisions of ITAT Indore Bench in cases involving Jay Jyoti India Pvt. Ltd. & other companies of the same group, where it had been consistently held that these entities were not paper/shell companies & the credits could not be treated as unexplained. Assessee relied on decisions such as Sanjay Shukla vs ACIT, Hi Link City Homes Pvt. Ltd., Krishna Devcon Pvt. Ltd., Global Realcon Pvt. Ltd., & others, where similar additions were deleted.
