Daksha Abani Das vs Income Tax Officer

Parties Involved

Facts Summary

The assessee electronically filed its return of income on 20/09/2010 declaring total income at Rs.6,65,578/-. The return was processed u/s.143(1) of the Act but subsequently, reopened by issue of notice u/s.148 of the Act. The basis for reopening the assessment was the information received from the office of Director of Income Tax (Investigation)-Mumbai who informed that a search and seizure action has been conducted in the case of Praveen Kumar Jain group which revealed that Praveen Kumar Jain group is a leading provider of accommodation entry through benami concerns operated by them. Since the assessee was one of the beneficiaries of such accommodation entries, the assessment was reopened by issue of notice u/s.148 of the Act. The allegation on the assessee was that it has received accommodation entries from (i) Ansh Merchandise Pvt. Ltd (New Planet Trading Co. Pvt. Ltd.) PAN AABCN8176E amount Rs.20,00,000/- (ii) Olive Overseas Pvt. Ltd. (Realgold Trading Co Pvt. Ltd.) PAN AACCR4512K amount Rs.20,00,000/-. The assessee was asked to prove the genuineness of the impugned loan transactions. The assessee furnished necessary details with supporting documentary evidences which were dismissed by the AO who was of the firm belief that since Praveen Kumar Jain has admitted that he has been providing accommodation entries, therefore, the alleged loans are bogus loans. The AO made an addition of Rs.40,00,000/-. Assessee carried the matter before the CIT(A), but without any success.…

Legal Issues

• 1. Reopening of the assessment
• 2. Addition of Rs.40,00,000/- in respect of loans taken and treated as not genuine

Judgment Outcome

Decided in favour of Assessee.

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