Ampulla Developers Private Limited Vs ITO (ITAT Delhi)
Abandoned Section 68 Allegation Cannot Support New Commission Addition; ₹23.24 Crore Reopening Fails After AO Changes Escapement Basis; Accommodation-Entry Commission Requires Evidence Beyond Investigation Information; Unsupported 2% Commission Estimate Cannot Rescue Invalid Reassessment: ITAT Delhi.
Facts of the case
The assessee, Ampulla Developers Private Limited, was incorporated on 12.07.2010 & engaged in the business of real-estate development.
AY 2012-13 was only the second year of its operations. The company was stated to be in its gestation or incubation period, as real-estate activity ordinarily involves considerable time for identifying & purchasing land, negotiating with prospective parties & obtaining statutory approvals before commencing development.
The DDIT (Investigation), New Delhi, forwarded information concerning M/s Janardhan Infrastructure Pvt. Ltd. According to the Investigation Wing, that entity had received debits & credits from various companies, including the assessee.
On the basis of this information, the AO formed an opinion that the assessee had been used for the layering of funds.
The aggregate credits appearing in the assessee’s bank account amounted to ₹23.24 crore. However, instead of ultimately adding the entire amount, the AO estimated that the assessee had earned commission at 2% for allegedly providing accommodation entries.
