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Facts
The assessee's appeal for AY 2010-11 arose from an order confirming an addition of Rs. 66.22 Lacs made by the AO under section 69A for alleged accommodation entries. The addition was based on a search related to M/s Mahasagar Securities and Mukesh Kumar Choksi Group.
Held
The Tribunal noted that the assessee had filed written submissions and documentary evidence during lower proceedings, contrary to the lower authorities' findings. The Tribunal deemed it fit to provide another opportunity for the assessee to substantiate its case.
Key Issues
Whether the assessee was given a reasonable opportunity to present evidence, and whether the lower authorities correctly considered the submissions made.
Sections Cited
69A, 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “DB” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2010-11 arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 28-10-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144 of the Act on 22-12-2016. In the assessment order, Ld. AO made addition of Rs.66.22 Lacs u/s 69A for want of any satisfactory explanation from the assessee. The same was on the basis of search conducted in the case of M/s Mahasagar Securities and Mukesh Kumar Choksi Group who allegedly indulged in providing accommodation entries. The Ld. CIT(A) confirmed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before us. The Ld. AR filed written submissions and assailed the assessment on legal grounds as well as quantum additions on merits. The Ld. CIT-DR pleaded for dismissal of the appeal of the assessee.
The Ld. AR has tabulated the credits received from various entities during the year. Upon perusal of the same, it could be seen that the credits have been received from related entities as well as out of consideration received from sale of certain shares. It also appear that during the course of lower proceedings, the assessee had filed written submissions along with various documentary evidences in support of all the transactions. This is in contrast to the findings of lower authorities that the assessee failed to produce any submissions / documents. On these facts, we deem it fit to afford another opportunity of hearing to the assessee to substantiate its case before Ld. CIT(A). Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) "ाियक सद" /JUDICIAL MEMBER लेखा सद" /ACCOUNTANT MEMBER Dated: 23-04-2025 आदेश की "ितिलिप अ"ेिषत / Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF