DCIT vs Rajan Kumar

Parties Involved

Facts Summary

The assessee, Rajan Kumar, is an individual running a proprietorship firm under the name of 'M/s Shipra Engineers and Consultants'. He filed a return of income on 21-03-2013 declaring total income at Rs. 42,50,268/-. The case was selected for scrutiny, and notices were issued under sections 143(1) and 142(1) of the Income Tax Act, 1961. The Assessing Officer rejected the books of account and completed the assessment, making an addition of Rs.1,82,39,020/-. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A), which was dismissed. The assessee then filed an appeal before the tribunal, which was disposed of on the ground that the assessee opted for the Vivad se Vishwas scheme and settled the dispute. Further investigation revealed that a search action under section 132 of the Act was carried out at the premises of M/s Skylark Group of cases on 25-04-2017. It was found that Shipra Engineers and Consultants Prop. Rajan Kumar is one of the beneficiaries who has given accommodation entries to M/s Skylark Group through non-genuine entities during the A.Y.2012-13 amounting to Rs.1,83,50,000/-. The AO processed the case under sections 147/148 of the Act after obtaining approval and issued notices under section 148 and 142(1) of the Act. The Assessing Officer completed the assessment, making an addition of Rs.1,83,50,000/- as a non-genuine transaction under section 69A of the Act and a 2% commission amount for providing accommodation entry.…

Legal Issues

• 1. Deletion of addition made on account of unexplained money under section 69A of the Act.
• 2. Deletion of addition of Rs.1,83,50,000/- as accommodation entry provided in the form of non-genuine share premium.
• 3. Upholding the addition on account of commission earned @ 2% (Rs.3,67,000/-) which emanates from the unexplained money to the tune of Rs.1,83,50,000/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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