2011 (7) TMI 1224

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....ction 68 of the Income-tax Act. 2. The brief facts of the case are that assessee-company has filed its return of income on 31.10.2001 declaring an income of Rs. 15,880/-. The return of the assessee was processed u/s 143(1) of the Income-tax Act. The Assessing Officer had received an information from the investigation wing of Delhi that assessee had received accommodation entries from the entry operators, after paying its unaccounted cash. The Assessing Officer has reopened the assessment by issuance of a notice u/s 148 of the Incometax Act. In the reassessment proceeding, Assessing Officer confronted the assessee that it has received the sum of Rs. 9 lacs from M/s M.V. Marketing Pvt. Ltd., why this amount may not be treated as unexplaine....

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....f transaction since he had not been the Director of that company in financial year 2000- 01. The reliance placed by the assessee company on the court decisions is not relevant to the case of the assessee as in those cases there was no doubt as to the genuineness of the transactions and there was no occasion for the court to consider the case of accommodation entries involving giving false entries in lieu of cash. Since the assessee company failed to discharge its onus to prove the above, the total amount of Rs. 9,00,000/-, mentioned above, is added to the total income of the assessee company u/s 68 of the Income-tax Act, 1961. For the reasons discussed above penalty proceedings u/s 271(1)(c) of the Income-tax Act, 1961, are initiated separa....