Asia Pacific Resources Private Limited vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Asia Pacific Resources Private Limited, had filed its return of income for the Assessment Years 2013-14 and 2014-15. The Assessing Officer (AO) reopened the case based on information that the assessee had received a sum of Rs. 6 crores from M/s. Ayan Trading Co., which was in the nature of accommodation entry. The assessee denied any transaction with M/s. Ayan Trading Co. and requested specific details of the alleged transaction, which were not provided by the AO. The AO proceeded to examine the transactions of the assessee with M/s. SP Trading Company and M/s. Patel Trading Company and treated the purchases from these concerns as bogus. The assessee appealed against the order of the Commissioner of Income Tax (Appeals), which was dismissed. The assessee now appeals to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the reopening of the assessment is valid in law?
• 2. Whether the assessment order is sustainable?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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