ALM INFOTECH CITY PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE-2(1), NEW DELHI
Facts
The case pertains to a reassessment initiated under sections 147/148 of the Income Tax Act for the increase in paid-up capital and security premium. The Assessing Officer and Ld. CIT(A) found that the assessee had obtained bogus accommodation entries for share capital from entities controlled by Shri S.K. Jain.
Held
The Tribunal concurred with the lower authorities, noting that the assessee failed to provide any evidence to establish the genuineness of the transactions or the identity and creditworthiness of the investing entities. Consequently, the addition was upheld, as the grounds raised by the assessee lacked substance.
Key Issues
Whether the addition for increase in paid-up capital and security premium, arising from alleged bogus accommodation entries, was correctly sustained by the tax authorities.
Sections Cited
147, 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: G.S. PANNU, HON’BLE & SH. ANUBHAV SHARMA
PER ANUBHAV SHARMA, JM : Heard and perused the record.
None has appeared for the assessee in spite of notices being
issued repeatedly and the record shows earlier, Shri Tarandeep
Singh, Advocate has appeared and sought adjournment. Notices have
also been issued by e-mail. No more opportunity is justified.
Heard Ld. DR has supported the findings of Ld. Tax Authorities
below. It comes up that the reassessment order was passed u/s
147/148 of the Act on the basis of increase in paid up capital, by
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increase in security premium and the Ld. AO was satisfied that the
equity shares were issued to bogus entities which have been
transferred to their own entities.
The Ld.CIT(A) has sustained the addition holding that assessee
had taken accommodation entries. As we go through the orders of
Ld. Tax Authorities, we find that the Assessing Officer had examined
the modus operandi adopted by Shri S.K. Jain and the entities
controlled by him to provide bogus accommodation entries for
introduction of share capital. There was no evidence on the part of
the assessee to rebut and establish the genuineness of the
transaction by proving identity and creditworthiness of the investing
entities. The material on record requires no other opinion. The
grounds raised have no substance. The appeal of assessee is
dismissed.
Order pronounced in the open court on 29.02.2024 SdsSd Sd/- Sd/- Sd/- Sd/- (G.S. PANNU) (ANUBHAV SHARMA) VICE PRESIDENT JUDICIAL MEMBER Date:- 29.02.2024 *Kavita Arora, Sr. PS
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