TaxTMI 
TaxTMI 
2026 (1) TMI 72
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....ssued u/s 148 of the Act. Thereafter, notices u/s 142(1) of the Act on were issued to the assessee for submission of required details/documentary evidences/clarifications related to transactions of Rs. 1,23,09,876/- made with the dummy concerns. In response, the assessee filed its reply through e-communication dated 24.03.2021 and stated that, ".....Return of income filed originally u/s 139(1) may be treated as filed in response to notice u/s 148....". On perusal of acknowledgment of return, Assessing Officer observed that the assessee has shown total income of Rs. 1,950/-. Thereafter, notice u/s 143(2) of the IT Act dated 30.06.2021 was issued to the assessee. In reply, assessee submitted that :- (i) Assessee have maintained complete record of all the transactions carried out during the year including those in question. All the necessary documents with regard to these transactions are being submitted alongwith this reply to prove the genuineness of the transactions; (ii) Assessee have duly declared all the transactions in the quarterly VAT returns filed with the HVAT Authorities Karnal; (iii) that the VAT assessment for the year under consideration has a....
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....(The Karur Vysya Bank Ltd) Rs.25,50,000/- 4 M/s Shree Shiva Agro Traders, Prop. Ram Karan PAN:CDCPK2482D A/c No.4205135000000530 (The Karur Vysya Bank Ltd) Rs.35,49,876/- Total Rs.1,23,09,786/- Assessing Officer further observed that the assessee has not provided complete details and documentary evidences of transactions made with the above concerns and, therefore, notice u/s 142(1) of the IT Act was issued and duly served upon the assessee through its registered e-mail address on 03.08.2021 for submission of following complete details and documentary evidences of the transactions made with the above concerns and prove the genuineness of the transactions made with them. * Nature of transactions made with the above concerns. * Confirmation accounts alongwith ID, signature and address proof of the proprietors of the above concerns. * Copies of ITRs and copies of bank accounts of the above concerns. * Copies of bills and compete details and documentary evidences of goods sold/purchased to/from the above concerns. * Complete details and documentary evidences of transportation of goods alongwith vehicle No. and ....
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.... has received cash credits of Rs. 1,23,09,876/- for the purpose of evading tax. Therefore, the accommodation entries of Rs. 1,23,09,876/- received by the assessee from the dummy concerns is added to the total income of the assessee on account of unexplained cash credit received by the assessee from unaccounted sources of income as per the provisions of section 68 of the IT Act. 8. Further, for the purpose of providing accommodation entries, he observed that the assessee may have paid minimum amount of Rs. 61,549/- at the rate of 50 paise per hundred rupee of Rs. 1,23,09,876/- in cash for the said purpose. Thus, the amount of Rs. 61,549/- is added to the total income of the assessee as per the provisions of Act. Accordingly, Assessing Officer assessed the total income of the assessee at Rs. 1,23,73,375/-. 9. Aggrieved assessee preferred an appeal before the ld. NFAC, Delhi and filed grounds of appeal as well as additional evidences. Ld. CIT (A) after going through the submissions and relying on various judgments did not accept the additional evidences filed by the assessee. Further ld. CIT (A), after going through the submissions of the assessee, dismissed the appeal filed by ....
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....dering the said assessment order an illegal order which deserves to be quashed and the Ld. CIT(Appeals) has further erred in confirming the same. 7. That without prejudice to above grounds of appeal, the Ld.CIT (Appeals) has grossly erred in not admitting the Additional evidence under Rule 46A of the Income Tax Rules. 9. That without prejudice to the first six grounds of appeal, the A.O has miserably failed in appreciating the information in his possession in a proper, logical and legal manner and has thus framed an assessment order which is highly illogical and arbitrary and the Ld. CIT(Appeals) has further erred in confirming the same. 10. That without prejudice to the first six grounds of appeal, the A.O has miserably failed in appreciating the submissions, replies and documents submitted in support of Sales made in the ordinary course of the business of the assessee in a proper, logical and legal manner and has thus added Rs. 1,23,09,876/- to the Returned Income of the assessee u/s 68 of the Act as cash credits which is highly illogical, arbitrary and based merely on suspicion, conjectures and surmises and the Ld. CIT(Appeals) has further erred in con....