Meenakshi Gupta Vs ITO (Delhi High Court)
Delhi High Court has dismissed an appeal filed by Meenakshi Gupta (assessee), upholding the Income Tax Appellate Tribunal’s (ITAT) decision to confirm the addition of ₹25 lakhs to her income as an unexplained credit for the Assessment Year 2012-13. The court found that the assessee failed to establish the genuineness of the transaction and the creditworthiness of the loan-providing entity, M/s Oxygen Projects Pvt. Ltd.
The case originated when the Assessing Officer (AO) reopened the assessment for AY 2012-13 by issuing a notice under Section 148 of the Income Tax Act, 1961, on March 30, 2019. This action was based on information from the Investigation Wing, which indicated that the assessee had received ₹25 lakhs from M/s Oxygen Projects Pvt. Ltd.
Background of the Investigation
Enquiries into M/s Oxygen Projects Pvt. Ltd. revealed a suspicious financial pattern. While a substantial sum of ₹15.70 crores had passed through its bank account between Financial Years 2009-10 and 2014-15, its income tax returns showed “Nil” revenue from operations during these periods. The detailed breakdown of the company’s financial profile, as presented in the reasons for reopening the assessment, clearly suggested it was a “paper concern” likely used for providing “accommodation entries” rather than engaging in genuine business activities.
