Assessment under tax law alleging unaccounted income converted to share capital; SLP dismissed affirming appellate deletions

Assessment under tax law concerned allegation of generation of unaccounted money and its transfer as share capital, with revenue treating transactions as accommodation entries. The appellate authorities (CIT(A) and ITAT) found reliance on third-party statements and evidence insufficient to sustain additions and deleted the disputed additions, and the Supreme Court dismissed the SLP, leaving the appellate deletions intact. The legal effect is that uncorroborated third-party statements and failure to prove accommodation entries will not sustain additions in such assessments.

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The Supreme Court of India dismissed the special leave petition as there was no reason to interfere in the matter. The delay was condoned and pending applications were disposed of. (2019 (10) TMI 931 - SC Order)

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