https://www.taxtmi.com/caselaws?id=775170 The Delhi HC upheld the ITAT's decision dismissing the assessee's appeal regarding reopening of assessment under section 147. The case involved an unsecured interest-free loan from a company to the assessee, which the Investigation Wing flagged. The HC found merit in the assessee's argument that no search was conducted establishing the lender as an accommodation entry provider, and no statement from the lender's authorized person was recorded. However, the court noted undisputed facts: the assessee failed to explain why the entity provided an interest-free loan, departmental enquiries found the lender not operating from its registered office, section 133(6) notices were returned unserved, and the assessee couldn't establish the lender's creditworthiness or transaction genuineness. The HC concluded the AO's findings regarding failure to prove creditworthiness and genuineness were justified, dismissing the appeal. en-us Wed, 09 Jul 2025 00:00:00 +0530 Mon, 21 Jul 2025 08:43:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775170 The Delhi HC upheld the ITAT's decision dismissing the assessee's appeal regarding reopening of assessment under section 147. The case involved an unsecured interest-free loan from a company to the assessee, which the Investigation Wing flagged. The HC found merit in the assessee's argument that no search was conducted establishing the lender as an accommodation entry provider, and no statement from the lender's authorized person was recorded. However, the court noted undisputed facts: the assessee failed to explain why the entity provided an interest-free loan, departmental enquiries found the lender not operating from its registered office, section 133(6) notices were returned unserved, and the assessee couldn't establish the lender's creditworthiness or transaction genuineness. The HC concluded the AO's findings regarding failure to prove creditworthiness and genuineness were justified, dismissing the appeal. Case-Laws Income Tax Wed, 09 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775170