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Facts
The appeal was filed by the assessee against an addition of Rs. 1 crore by the tax authorities. This amount, received from the sale of shares, was treated as alleged accommodation entries and undisclosed income under Section 68 of the Income Tax Act. The CIT(A) upheld the addition, citing incriminating documents found during a search operation which indicated the assessee benefited from companies providing such entries.
Held
The Income Tax Appellate Tribunal (ITAT) dismissed the assessee's appeal. The Tribunal found no grounds to interfere with the factual findings of the lower tax authorities, which concluded that the share sales were accommodation entries and undisclosed income, given the minimal account balances before and after the credits.
Key Issues
Whether the Rs. 1 crore received from the sale of shares by the assessee constitutes genuine income or is to be treated as accommodation entries and undisclosed income under Section 68 of the Income Tax Act, 1961.
Sections Cited
147, 143(3), 68
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Income Tax Appellate Tribunal, DELHI BENCH, ‘F’: NEW DELHI
Before: SHRI ANUBHAV SHARMA
Date of Hearing 31.07.2025 Date of Pronouncement 17.09.2025 ORDER PER ANUBHAV SHARMA, JM,
This appeal has been preferred by the assessee against order dated 20.03.2019 of the learned Commissioner of Income Tax (Appeals)-6, w Delhi, (hereinafter referred to as ‘the Act’) in Appeal No.CIT(A),Delhi-6/10252/2017- 18, arising out of order passed u/s 147 r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Income Tax Officer, ward 16(2), New Delhi, pertaining to Assessment Year 2010-11.
At the time of hearing, none appeared for the assessee and record shows that assessee was earlier served and after putting the appearance, adjournments were repeatedly sought, therefore, no further notice is justified.
On hearing the ld. DR, we find that the issue concerns addition of Rs.1,00,00,000/- received by assessee from M/s Prraneta Industries Ltd. on 68 of the Act.
The Ld. CIT(A) has taken into consideration the facts and circumstances and on the basis of several incriminating documents found during the search operation that assessee had benefitted by companies operated by Shri Shirish C. Shah. It was observed that prior to receiving credits and after giving the two credits, balance in the account were minimal. In the absence of any assistance, the factual findings of the ld. Tax authorities below require no interference. Resultantly, the appeal of the assessee is dismissed. Order pronounced in the open court on 17th September, 2025.