Case Law Details
Hillman Properties Pvt. Ltd. Vs ITO (ITAT Delhi)
Merely showing that transactions were carried out through Banking channel in the facts and circumstances of the case is not sufficient to prove the genuineness of the transaction in the matter. Courts and Tribunals have to Judge the evidence before them by applying the test of human probability. If the said test is applied in this matter, it is clearly established that assessee failed to prove identity of the accommodation entry providers, their creditworthiness and genuine of the transaction in the matter. We, therefore, do not find any justification to interfere with the Orders of the authorities below in making the addition of Rs. 50 lakhs.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-XXVII, New Delhi, Dated 29.08.20 14, for the A.Y. 200 1-2002.
2. Briefly the facts of the case are that information was gathered from DIT (Inv), New Delhi that the assessee company had received accommodation entries of Rs.25,00,000/-. Since the amount was not reflected in the balance sheet filed by the assessee along with the original-return, action under section 147 of I.T. Act, 1961 was taken. Notice under section 148 of I.T. Act, 1961 was issued and served upon the assessee. The assessee filed letter stating that the return filed earlier under section 139(1) may be treated as return filed under section 148 of the I.T. Act. The A.O. issued statutory notices for completion of the assessment. Reasons for reopening of the assessment were also provided to assessee. The assessee filed written submission objecting the re-assessment proceedings which were disposed off separately by passing speaking order. The assessee stated that the A.O. has failed to give any details about the information and documents which have been relied upon by the A.O. at assessment stage. However, the A.O. noted that for initiation of action under section 148 have been conveyed to the assessee and hence, the allegation of the assessee are incorrect. The assessee was asked to produce the principal officer of the following company from whom the accommodation entries were taken :-
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