Lucky Machine P. Ltd, the appeal of the assessee has been allowed with the judgement of Ld. DR being overruled

The Income Tax Appellate Tribunal (ITAT) Delhi has allowed the appeal filed by M/s Lucky Machine P. Ltd for the assessment year 2010-11. The tribunal overruled the order of the Ld. DR. The appeal concerned an addition of Rs. 4 lakhs made by the AO under Section 68 of the IT Act, which the assessee company had received as an accommodation entry. The assessee had objected to the reassessment proceedings and the addition on merits.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES “SMC”: DELHI

BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
ITA.No.5415/Del./2019
Assessment Year 2010-11

M/s Lucky Machines P. Ltd.
Kawara Industrial Area,
Kawara Road,
Near Lingyas College,
Faridabad.
PAN No. AABCL7307H
(Appellant) 

vs.

DCIT
Circle-1,
Faridabad,
Haryana.
(Respondent)

For Assessee : Shri K.C. Singhal, Advocate
For Revenue : Shri Prakash Dubey, Sr. DR

Date of Hearing : 04.01.2021
Date of Pronouncement : 08.01.2021

ORDER

This appeal by assessee has been directed against theorder of Ld. CIT(Appeals)-Faridabad dated 22.05.2019 for AY 2010-11.

2. I have heard Ld. Representatives of both the parties through Video Conferring and perused the material on record.

3. Ld. Counsel for assessee did not press ground no. 1 & 2of the appeal regarding initiation of reassessment proceedings. The same is dismissed as not pressed.

4. Briefly the facts of the case are that return of income declaring Rs. 500/- was e-filed by the assessee company on12.09.2010. The return was processed u/s 143(1) of the IT Act, as such. The AO issued notice u/s 148 on 31.03.2017 after recording the reasons that the assessee company hasreceived accommodation entry from Grace Exim Pvt. Ltd. in asum of Rs. 4 lakhs. The assessee submitted before AO in its submission dated 19.04.2017, the return filed originally may be considered as return filed in response to notice u/s 148 of the IT Act. The assessee filed detailed reply before AOobjecting to the proposed action u/s 148 of the Act as well asaddition on merits. The AO, however, made addition of Rs. 4 lakhs u/s 68 of the Act in reassessment order dated 24.12.2017 u/s 143(3)/147 of the Act.

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