Maheshwari Roller Flour Mills Pvt Ltd, New Delhi ITO WARD - 16(1), New Delhi

Maheshwari Roller Flour Mills Pvt. Ltd. appealed against the Income Tax Appellate Tribunal's decision regarding reassessment proceedings and additions made for the assessment year 2009-2010. The Tribunal upheld the reassessment, which included an addition of Rs. 25 lakhs for unexplained share capital and Rs. 45,000 for unexplained expenditure, both related to accommodation entries. The company's objections to the reopening of its assessment were rejected.

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

BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND
SHRI O.P. KANT, ACCOUNTANT MEMBER
ITA.No.4257/Del./2019
Assessment Year 2009-2010

Maheshwari Roller Flour
Mills Pvt. Ltd., New Delhi.
PAN AAACM1075C
C/o. Raj Kumar &
Associates, CA, L-7A (LGF),
South Extn. Part-II,
New Delhi – 110 002.
(Applicant) 

[vs.

The Income Tax Officer,
Ward – 16 (1),
New Delhi.
(Respondent)

For Assessee : Shri Raj Kumar, C.A.
Shri Sumit Goel, C.A.
For Revenue : Shri Prakash Duby, Sr. DR

Date of Hearing : 10.12.2020
Date of Pronouncement : 17.12.2020

ORDER

PER BHAVNESH SAINI, J.M.

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-6, Delhi, Dated29.03.2019, for the A.Y. 2009-2010, challenging the initiation of re-assessment proceedings under section 147/148 of the I.T. Act, 1961, addition of Rs.25 lakhs under section 68 of the I.T. Act, 1961, received from M/s. KDG Properties and Con (P) Ltd., and addition of Rs.45,000/-under section 69C of the I.T. Act, 1961 on account of unexplained expenditure.

2. We have heard the Learned Representatives of both the parties through video conferencing and perused the material on record.

3. Briefly the facts of the case are that assessee is a company which was incorporated on 20.06.1988 under the Company Act, 1956. The assessee-company filed its return of income on 30.09.2009 for the assessment year under appeal declaring income at Rs 20,83,590/-. The return was processed under section 143(1) of the I.T. Act, 1961. Subsequently, an information was received from the office of the Director of Income-tax (Investigation-II), New Delhi, Dated 12.03.2013, mentioning therein that a search operation was carried out in the case of S.K. Jain group of cases wherein after investigation and extensive enquiry and examination of document seized during course of search, it was found that the said group has been providing accommodation entries to various persons and the assessee-company was also figured in the same list. The A.O, therefore, recorded reasons for reopening of the assessment and issued notice under section 148 of the I.T. Act, 1961. The A.O. reproduced the reasons at pages 2 to 8 of the assessment order and after considering the objections of the assessee company against reopening of the assessment, rejected the objections of the assessee company and made the addition of Rs.25 lakhs under section 68 of the I.T. Act, 1961 on account of unexplained share capitaland further made addition of Rs.45,000/- on account of unexplained expenditure for obtaining accommodation entry. The Ld. CIT(A), however, dismissed the appeal of assessee.

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