M/s. Stratus Commodities Pvt. Ltd. Vs. ITO, Ward-1(1), Kolkata

Parties Involved

Facts Summary

The Assessing Officer received information from the Investigation Wing that the assessee, M/s. Stratus Commodities Pvt. Ltd., is a beneficiary of an accommodation entry amounting to Rs. 90,00,000/- from M/s. Canary Tradecom Pvt. Ltd. Consequently, the case of the assessee was reopened under section 147 of the Income Tax Act, 1961 by issuing a notice under section 148 on 31.03.2017. The assessee complied with the notice by filing the return of income on 16.08.2017 and provided all the details and evidences as requested by the Assessing Officer. However, the Assessing Officer added Rs. 90,00,000/- to the assessee's income, claiming it was the assessee's own money through an accommodation entry. The Commissioner of Income Tax (Appeals) confirmed this addition without examining the evidence provided by the assessee.…

Legal Issues

• 1. Confirmation of addition of Rs. 90,00,000/- by the Assessing Officer on account of unexplained cash credit under section 68 of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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