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Facts
The assessee's return for AY 2011-12, showing a loss, was processed. Information from ADIT(Inv.) led to reassessment proceedings under Section 147 as income was believed to have escaped assessment. An addition of Rs. 50,00,000/- was made on account of an alleged unexplained accommodation entry.
Held
The Tribunal noted that both the Assessing Officer and the CIT(A) had failed to look into the facts of the case and had simply made the addition. Therefore, in the interest of justice, the matter was remanded back to the Assessing Officer.
Key Issues
Whether the addition on account of an alleged accommodation entry was justified without proper examination of facts and supporting documents like bank statements?
Sections Cited
147, 143(1), 143(2), 142(1), 144, 68, 250
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Income Tax Appellate Tribunal, ‘B’ BENCH KOLKATA
Before: Shri Sonjoy Sarma & Shri Rakesh Mishra
Assessment Year: 2011-12 Highgrowth Vyapaar Pvt. Ltd…………..……..…………………....Appellant 42E, Cornfield Road, Ground Floor, Ballygunge, Kol-19. [PAN: AACCH0203R] vs. ITO, Ward-12(1), Kolkata..…………....…..………………….…..... Respondent Appearances by: Shri Avijit Ghoshal, Advocate, appeared on behalf of the appellant. Shri Soumitra Ghosh, Addl. CIT, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : July 28, 2025 Date of pronouncing the order : August 13, 2025 आदेश / ORDER
Per Sonjoy Sarma, Judicial Member:
This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre dated 15.03.2024 passed against the assessment order under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2011–12.
At the outset, it is noted that there is a delay of 347 days in filing the present appeal before the Tribunal. The assessee has filed a condonation petition explaining the reasons or such delay. After considering the submissions and materials on record, we are satisfied that there was reasonable cause for the delay in filing the appeal. Accordingly, the said delay is condoned, and the appeal is admitted for adjudication.
Brief facts of the case are that in the case of the assessee, the return of income was filed on 18.03.13 disclosing a loss of Rs.11,281/-.
Highgrowth Vyapaar Pvt. Ltd The return of the assessee was processed u/s 143(1) of the Act. Puruant to the information received from ADIT(Inv.), Kolkata the return filed by the assessee was believed that income escaped within the meaning of section 147 of the Act and accordingly reassessment proceedings were initiated. It was noticed by the Assessing Officer that the assessee company had received an accommodation entry amounting to Rs.50,00,000/- which was unexplained. Thereafter, notices u/s 143(2) and 142(1) of the Act were issued and there was no compliance to the said notices by the assessee. In the absence of due compliance, the Assessing Officer passed the assessment order u/s 147 r.w.s. 144 of the by making an addition of Rs.50,00,000/- u/s 68 of the Act in the hands of the assessee.
3. Aggrieved by the above order, the assessee filed an appeal before the ld. CIT(A) where the appeal of the assessee was dismissed by the ld. CIT(A) upholding the order of the Assessing Officer.
Dissatisfied with the above order, the assessee is in appeal before us. The ld. AR stated that the alleged contention of the Assessing Officer that the assessee was a beneficiary of bogus transaction by receiving accommodation entry of Rs.50,00,000/- was not correct. He further stated that the Assessing Officer has never looked into the facts but simply made the addition which is bad in law and even the ld. CIT(A) has failed to look into the matter, which is not justified.
We, after hearing both the parties and perusing the materials available on record, find that the Assessing Officer has never looked into the fact but simply made the addition and even the ld. CIT(A) has not looked into the fact, which is bad in law. Therefore, in the interest of justice and fair play, we remand the matter back to the file of the Assessing Officer with a direction to look into the bank statement of the Highgrowth Vyapaar Pvt. Ltd assessee which was filed at the time of framing of assessment order and the same was furnished before us by the assessee and reexamine the issue relating to alleged accommodation entry of Rs.50,00,000/- which the transaction was made by the assessee during the assessment order in question.
In the result, the appeal of the assessee is allowed for statistical purposes. Kolkata, the 13th August, 2025.