AKC Retailers Private Limited Vs DCIT/ACIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal filed by the assessee for Assessment Year 2012-13, holding that the Assessing Officer (AO) had exceeded the jurisdiction assumed under Section 147 of the Income-tax Act by making additions on issues that were not part of the reasons recorded for reopening the assessment.
The assessee had originally filed its return of income declaring an income of Rs. 5,509, which was processed under Section 143(1). Subsequently, based on information received from the Investigation Wing, Kolkata, the AO reopened the assessment under Section 148. The information suggested that the assessee had allegedly received accommodation entries amounting to Rs. 5,15,00,392 in the form of unsecured loans from two entities, namely M/s Pyramid Vincom Pvt. Ltd. and M/s Gliter Deal Marketing Pvt. Ltd., which were stated to be managed and controlled by M/s Topstar Marketing Pvt. Ltd.
However, during reassessment proceedings, the AO examined the bank statements of the assessee and the two entities named in the recorded reasons and found that the assessee had not received any unsecured loans from those companies during the relevant assessment year. Thereafter, relying on further information from the Investigation Wing, the AO identified share application money received from M/s Pushpanjali Commotrade Pvt. Ltd. amounting to Rs. 2 crore and M/s Skylight Distributors Pvt. Ltd. amounting to Rs. 1.95 crore. The assessee explained that these amounts had been received as share application money, shares were ultimately not allotted, and the amounts were subsequently refunded.
Comments are closed.