M/s Radha Developers (P) Ltd., Delhi Vs. ITO, New Delhi

The Income Tax Appellate Tribunal (ITAT) Delhi heard appeals from M/s Radha Developers (P) Ltd. concerning the assessment year 2006-07. The Income Tax Officer (ITO) reopened the case after receiving information that the assessee had received ₹75 lakh in accommodation entries. Despite the assessee's original return showing nil income, the ITO made an addition of ₹75 lakh as unexplained investment, which was upheld by the CIT(A). Radha Developers has now appealed to the ITAT.

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH: ‘F’, NEW DELHI

BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER

AND

SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER

(THROUGH VIDEO CONFERENCE)

ITA NOS. 2165/DEL/2017 & 6693/DEL/2019

A.YR. : 2006-07

M/S RADHU DEVELOPERS (P) LTD.,811, PEARLS BEST HEIGHT-1,NETAJI SUBHASH PLACE,PITAMPURA,DELHI – 110 034,(PAN: AADCR0879A)Vs. ITO, WARD 15(1),NEW DELHI 

(Appellant)

Vs.
ITO, WARD 15(1),NEW DELHI
(Respondent) 

Assessee by : Mr. Suresh K. Gupta, CA

Department by : Mr. Sunil, CIT(DR)

ORDER

PER H.S. SIDHU, JM

These appeals are filed by the assessee against the respective impugned order dated 21.2.2017 passed in the quantum appeal and order dated 27.3.2018 passed in the penalty appeal relating to assessment year 2006-07 by the Ld. CIT(A)-7, New Delhi & Ld. CIT(A)38, New Delhi respectively. 2. The brief facts of the case are that the assessee filed its return of income declaring NIL income on 26.11.2006 against which the assessment u/s. 143(3) of the I.T. Act, 1961 was completed on 21.11.2008 at NIL income. Subsequently, information was received from the office of Director of Income Tax, (Inv.), New Delhi that the assessee had received accommodation entries amounting to Rs. 75 lacs from various parties. The case of the assessee was reopened u/s. 147/148 of the Act and notice u/s. 148 of the Act was issued on 22.3.2013 with the prior approval of the CIT, Delhi-5, New Delhi, after recording the reasons. In view of the report received from the DIT (Inv.), New Delhi, the AO initiated the proceedings u/s. 147 of the Act and issued notice u/s. 148 of the Act dated 22.3.2013. In response to the same, assessee filed letter dated 22.4.2013 stating that the return of income originally filed on 28.11.2006 may be treated to have been filed in compliance of the notice u/s. 148 of the Act. After adopting the prescribed procedure, under the law, the AO made the addition of Rs. 75 lacs by holding that this sum credited in the books of accounts was not satisfactory explained and there was a prima facie evidence against the assessee viz. the receipt of bogus accommodation entries and the assessee has failed to discharge its onus to produce the legally evidence of creditworthiness of the subscribers and made the addition in dispute as unexplained investment of the assessee out of the undisclosed source of income being routed through such bogus accommodation entries and assessed in the hands of the assessee by completing the assessment u/s. 143/147 of the Act on 26.3.2014. Aggrieved with the same, assessee appealed before the Ld. CIT(A), who vide his impugned order dated 21.2.2017 has dismissed the appeal of the assessee and upheld the order of the AO. Now aggrieved with the impugned order, the assessee is in appeal before the tribunal.

To know more in details find the attachment file