Agroha Fincap Ltd. Vs PCIT (Supreme Court of India)
The Supreme Court dismissed the special leave petitions filed against the High Court judgment in the case concerning reassessment proceedings under Sections 147, 148, and approval under Section 151 of the Income Tax Act, 1961, thereby declining to interfere with the High Court’s decision.
The dispute arose from reassessment proceedings initiated against the assessee for Assessment Year 2009-10. The assessee had filed its return declaring income of Rs.40,720/-, which was processed under Section 143(1) and was not selected for scrutiny. Subsequently, the Revenue received information from the Investigation Wing stating that the assessee was allegedly a beneficiary of accommodation entries linked to the S.K. Jain group. According to the Revenue, the assessee had received share capital and share premium amounting to Rs.25 lakh through entities allegedly controlled by the entry operator group.
The Revenue alleged that the transactions represented unexplained cash credits under Section 68 and that the assessee failed to establish the identity, creditworthiness, and genuineness of the transactions. Notices under Sections 148 and 142 were issued, and the assessment order dated 28.11.2016 added Rs.25 lakh as unexplained credit along with Rs.45,000 as alleged commission expenditure for obtaining accommodation entries. Penalty proceedings under Section 271(1)(c) were also initiated.
