Onus Plantations & Argo Ltd. vs Dy. Commissioner of Income Tax

Parties Involved

Facts Summary

The case pertains to the assessment year 2015-16. A search and seizure action was conducted under section 132 of the Income Tax Act, 1961, revealing documents related to 'accommodation entry' transactions. The Assessing Officer (AO) assessed the income of the assessee at INR 22,70,930 by making additions of INR 22,00,000 on account of unexplained credits and INR 66,000 towards unexplained expenditure. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], which was dismissed. Aggrieved, the assessee filed an appeal before the Tribunal on several grounds, including the contention that the approval granted under section 153D of the Act was mechanical and not in accordance with the law.…

Legal Issues

• 1. Whether the approval granted under section 153D of the Act was mechanical and not in accordance with the law.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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