Case Law Details
Shri Bansilal Bagri Vs DCIT (ITAT Chennai)
This is the transaction arranged in such a way that the accommodation entries were made at several entities level and ultimately the money came back to the assessee. Herbicure Healthcare Bio-Herbal Research Foundation of Kolkata involved in the fraudulent and sham transactions, providing accommodation entries and claiming a bogus weighted deduction to the extent of 175%. The antecedents of the recipient were unearthed by the Department during the course of survey operation. The material available on record clearly establishes that the so-called donation ultimately received back by the assessee after reducing the commission. Therefore, the CIT(Appeals) in a very reasoned order found that the assessee involved in the sham transaction under the garb of donation. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
FULL TEXT OF THE ITAT JUDGEMENT
Both the appeals of the assessee are directed against the respective orders of the Commissioner of Income Tax (Appeals) – 12, Chennai, dated 28.12.2017 and pertain to assessment years 2012-13 and 2013-14. Since common issues arise for consideration in both the appeals, we heard these appeals together and disposing the same by this common order.
2. The first issue arises for consideration is disallowance of Rs. 1,44,556/- under Section 37 of the Income-tax Act, 1961 (in short ‘the Act’).
Please become a Premium member. If you are already a Premium member, login here to access the full content.
