Amigo Finstock Pvt. Ltd. Vs. ITO

Parties Involved

Facts Summary

The assessee, Amigo Finstock Private Limited, had filed its return of income for the Assessment Year (A.Y.) 2013-14 on 26.09.2013 declaring total income of Rs. 42,52,820. The case was reopened on the basis of information received by the Assessing Officer (AO) that the assessee had obtained accommodation entry in the form of a bogus loan of Rs. 25,68,794/- from two concerns. A notice under section 148 of the Income Tax Act was issued on 29.04.2020. The assessment was completed on 24.03.2022 at a total income of Rs. 1,10,32,917/- with an addition of Rs. 25,68,794/- on account of the bogus loan and the interest thereon. The assessee filed an appeal before the first appellate authority, which was dismissed by the Commissioner of Income Tax (Appeals). The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in confirming the action of AO in assuming jurisdiction under section 147 of the Act.
• 2. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 25,68,794 made by AO under section 69A of the Act.
• 3. Whether the provisions of section 69A of the Act can be pressed into service in the facts of the present case.
• 4. Whether the Ld. CIT(A) erred in confirming the action of AO in invoking the provisions of section 115BBE of the Act with respect to addition made under section 69A of the Act.
• 5. Whether the Assessment Order is void-ab-initio since it was passed without issuance of the statutory notice under section 143(2) of the Act.
• 6. Whether both AO & CIT(A) erred in passing the impugned orders without properly appreciating facts of the case, submissions of the assessee and documentary evidences available on record in the correct perspective.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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