SUDHIR KUMAR SHARMA (HUF),LUDHIANA vs. INCOME TAX OFFICER, WARD 6(1), LUDHIANA

ITA 591/CHANDI/2025Status: DisposedITAT Chandigarh24 August 2026AY 2009-1039 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee's shifting explanations and failure to substantiate them demonstrated a lack of bona fides. Consequently, the penalty under Section 271(1)(c) was confirmed.

What were the facts?

The assessee claimed to be an entry operator, providing accommodation entries. However, the assessee provided inconsistent explanations regarding the source of cash, shifting from accommodation entries to commodity trading and then back to accommodation entries with commission earnings.

What were the issues?

Whether the assessee's inconsistent explanations regarding the source of cash constitute concealment of income or furnishing of inaccurate particulars, warranting penalty under Section 271(1)(c).

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी लिलत कुमार, "ाियक सद" एवं "ी िवजय वमा" , लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. VIJAY VARMA, AM आयकर अपील सं./ ITA Nos. 588, 589 & 592 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2006-07, 2007-08 & 2009-10 Sudhir Kumar Sharma बनाम The ITO 70- New Lajpat Nagar, Ludhiana Ward 6(1), Ludhiana Punjab-141002 "ायी लेखा सं./PAN NO: ADBPS0503N अपीलाथ"/Appellant ""थ"/Respondent आयकर अपील सं./ ITA Nos. 587, 590 & 591 /Chd/ 2025 िनधा"रण वष" / Assessment Years : 2006-07, 2007-08 & 2009-10 Sudhir Kumar Sharma (HUF) बनाम The ITO 70- New Lajpat Nagar, Ludhiana Ward 6(1), Ludhiana Punjab-141002 "ायी लेखा सं./PAN NO: AAKHS0128R अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Shri Kuldeep Singh, Advocate and Shri MPS Malhotra, ITP (Virtual Mode) राज" की ओर से/ Revenue by : Smt. Kusum Bansal, Pr. CIT, DR and Dr. Ranjit Kaur, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 13/08/2026 उदघोषणा की तारीख/Date of Pronouncement : 24/08/2026 आदेश/Order PER VIJAY VARMA, A.M: All the above appeals have been filed by the Appellant aga

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