AMARJIT MOTOR FINANCE PRIVATE LIMITED,NEW DELHI vs. ACIT, CENTRAL CIRCLE-26, NEW DELHI

ITA 9220/DEL/2019Status: DisposedITAT Delhi29 January 2021AY 2016-1722 pages
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What did the Tribunal hold?

The Tribunal held that the additions were made on surmises and presumptions without concrete evidence or material found during the search of the assessee. The company's audited accounts showed regular business income, contradicting the shell company theory.

What were the facts?

The assessee, a finance company, was subjected to a search and seizure action. The Assessing Officer (AO) concluded the company was a shell entity providing accommodation entries based on information from a search of a related group, despite no incriminating material being found from the assessee's premises. The AO made additions for alleged commission on these entries.

What were the issues?

Whether additions for alleged commission on accommodation entries can be made without incriminating material found during the search of the assessee, and whether the assessee is a shell company based on external information.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3)

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Income Tax Appellate Tribunal, DELHI BENCH “A” NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI B.R.R. KUMAR

For Appellant: Shri Ramesh Goyal, Adv. & Shri R.K
For Respondent: Shri Satpal Gulati, CIT-D.R

PER BENCH:

The aforesaid appeals have been filed by the assessee against the common order dated 27.09.2019 passed by Ld. CIT (Appeals)-XXXI, New Delhi for the quantum of assessment passed under section 153A r.w.s. 143(3) for the assessment years 2011-12 to 2016-17; and separate order for the assessment year 2017-18 of even date which is passed under section 143(3). Since common issues are involved in all the appeals arising out of identical set of facts and same reasoning given by the Ld. CIT(A), therefore, same were heard

The order continues below.

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