Case Law Details
Ajay Kumar Aggarwal Vs ACIT (ITAT Delhi)
On careful consideration of rival submission first of all we note that the Assessing Officer is firstly made addition in the hands of assessee by treating the credit entries in the books of assessee but at the same time the AO ignored debit entries made by the assessee in his books of accounts. The proceeding against the assessee was triggered on account of search and seizure operation in the cases of BSBK Group including the assessee and all the relevant material and details of beneficiary was with the assessee therefore the AO could not lay onus of the shoulder of the assessee to alleged that the assessee has not been able to furnished the trail leading to the beneficiaries. In such a situation when the AO himself his alleging that the assessee is providing accommodation entry then if the debit and credit side of account is taking together then only a very small account would remain that is element of commission income accrued to the assessee. In our humble view the entire amount of credit entries cannot be added to the taxable income of the assessee ignoring the debit side entries and as when the assessee is receiving cash and issuing cheques then said cheque of almost same amount then the assessee cannot be held beneficiary of entire amount or entire amount of credit entries treating the same as unexplained. Therefore the addition made by the AO and uphold the Ld.CIT(A) on account of unexplained credits cannot be held as sustainable and we direct the AO to delete the same.
FULL TEXT OF THE ORDER OF ITAT DELHI
These appeals filed by the assessee are directed against the order dated 20.03.2017 of the Ld. CIT(A), New Delhi relating to Assessment Years 2007-08 to 2014-15.
2. The grounds raised in ITA No. 4002/Del/2017 for AY 2007-08 by the assessee read as under:
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