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Facts
The assessee appealed against an addition of Rs.2,00,184/-, confirmed by the CIT(A), which was alleged to be an accommodation entry received from "Radhika & Brothers." The assessment was reopened under section 147 based on information from the Investigation Wing, and the CIT(A) decided the appeal ex-parte against the assessee.
Held
The Tribunal held that the assessee deserved an opportunity to present its case before the AO. It directed the AO to furnish full details of the alleged accommodation entries to the assessee, and subsequently, the AO would re-adjudicate the matter afresh after considering the assessee's explanations.
Key Issues
Whether the addition for alleged accommodation entries was justified without providing proper details to the assessee and without an opportunity to be heard.
Sections Cited
Section 250, Section 147
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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
Year : 2019-20 Oracle Granito Limited The DCIT, Circle-3(1)(1) बनाम/ 206, Dev Arc, 2nd Floor Ambawadi v/s. Nr. Fun Republic Ahmedabad- 38015 Opp. Big Bazar S.G. Highway Road Ahmedabad- 380 015 "थायी लेखा सं./PAN: AAACO 6238 P (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri Aseem L. Thakkar, AR Revenue by : Shri Rohit Aasudani, Sr.DR सुनवाई की तारीख/Date of Hearing : 19/01/2026 घोषणा की तारीख /Date of Pronouncement: 27/01/2026 आदेश/O R D E R
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 10/10/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2019-2020.
The assessee, in this appeal, is aggrieved by the action of the Ld.CIT(A) in confirming the addition made by the Assessing Officer (AO) of Oracle Granito Ltd. vs. DCIT Asst. Year : 2019-20 Rs.2,00,184/-, allegedly received by the assessee as an accommodation entry through “Radhika & Brothers” an associate-concern of Sanjay Govindram Agarwal. As per the information available to the AO, the said concern was involved in providing accommodation entries and the assessee had received accommodation entries from the said concern of Rs.2,00,184/-. The AO, therefore, reopened the assessment of the assessee u/s.147 of the Act.
During the assessment proceedings, the assessee denied to have received any such accommodation entry. The AO, however, referred to three bank statements, whereby, three amounts had been credited to the account of the assessee, i.e. Rs.2,75,518/-, Rs.2,87,619/- and Rs.12,173/- on 28/06/2018 by way of cheque clearing from “Radhika & Brothers”. The AO, however, could not bring any evidence on record in respect of amount over and above the aforesaid three transactions. The AO, however, made the addition of the entire amount of Rs.2,00,814/-, as mentioned in the information, as income of the assessee received on account of accommodation entries as mentioned above. Though the assessee preferred appeal before the ld.CIT(A), however, assessee could not prosecute the same and, therefore, the appeal was decided against the assessee ex-parte of the assessee.
Before us, the Ld. Counsel for the assessee has submitted that, in this case, the entire addition has been made/confirmed by the lower authorities merely based on uncorroborated information received by the AO from Investigation Wing (IW). He has submitted that even the assessee has not been provided with any details showing the alleged transactions, the date of transactions and even the nature of transactions. He has submitted that the three entries referred to by the AO were on account of receipts of sale made by the assessee. He has submitted that the assessee has never received any Oracle Granito Ltd. vs. DCIT Asst. Year : 2019-20 such amount of Rs.2,00,814/- from any party. He has further submitted that the assessee may be given an opportunity to present its case before the AO.
After hearing the rival contentions of the parties, we are of the view that, in this case, the assessee deserves an opportunity to present its case before the AO. The AO is directed to furnish the details/information received by him regarding details and nature of accommodation entry received by the assessee and, thereafter, the assessee will also furnish the relevant details including the explanations about the three entries recorded by the AO in the assessment order, thereafter, the AO will decide the issue afresh in accordance with law.