TaxTMI 
TaxTMI 
2026 (3) TMI 557
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....sessment order passed u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 [hereinafter referred to as "Act"] dated 30.12.2019 for the Assessment Year [A.Y.] 2012-13. 2. The grounds of appeal are as under: 1. "On facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition u/s. 68 of the Income Tax Act, 1961 of Rs. 25,00,000/- being accommodation entries received from M/s. Khusboo Complex Pvt. Ltd. and deleting the disallowance of interest expenditure of Rs. 2,049/- incurred towards accommodation entries, without appreciating that it was established during the search action and was admitted by the key persons, entry provider, Shri Praveen Agarwal, in the statement recorded under oath during search ....
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.... 103 taxmann.com 48/262 Taxman 74/412 ITR 161 (SC) wherein it has been categorically held that if the investor companies have no real financial capacity, negligible income and no genuine business activities, the assessee cannot be said to have discharged its burden under section 68 and additions are justified. The ratio of this judgement of Apex Court squarely applies to the present case." 3. Briefly stated facts of the case are that the assessee is carrying on the business of Property developer. The return of income was filed claiming a loss of Rs. 17,21,698/-. Subsequently, the case was reopened u/s. 148 of the Act and the assessment was completed u/s. 143(3) r.w. section 147 of the Act assessing total income Rs. 7,80,350/- after makin....
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....along with interest and nothing was payable. According to him, the assessee could not bring on record with proper supporting evidences for authenticity of transactions u/s. 68 of the Act demonstrating that the transaction was not sham though as per report of the Investigation Wing of the Department, Kolkata the amount received by the assessee from KCPL was sham transaction. It was observed that identity, creditworthiness or genuineness of the transaction were not established by merely showing that the transaction was through banking channels or by account payee instrument. He placed reliance on the case of Commissioner of Income Tax vs. N R Portfolio Pvt Ltd. In holding that the impugned amount was not genuine but merely an accommodation en....
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....assessment proceeding, which is acknowledged by the ld. CIT(A) in the impugned appellate order. So, the contravention of Section 68 related to identity, creditworthiness, and genuineness of the transaction through the banking channel is ruled out. Related to the interest, the amount of 90,40,180/- was squarely covered by the order of ITAT, Kolkata Bench in the assessee's own case (supra). For rest of the interest, that pertained to loans of earlier years and the part of interest of the loan where the loan was repaid during the impugned assessment year, also follow the same principle laid down by the orders mentioned above. We do not find any reason to interfere with the impugned appeal order. The grounds of the revenue are dismissed." 4.....
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....made was therefore, deleted and consequently, the addition of interest u/s 69C was also deleted. 5. The ld.DR has placed reliance on the assessment order and the report of the Investigation wing in support of the contention that the impugned loan was merely an accommodation entry and non genuine. 6. Per contra, the ld.AR has reiterated the same contentions as made before the lower authorities and heavily relied on the findings and the decision of the first appellate authority. It is stated that the AO did not bring on any material which could prove the said loan as bogus and the transaction being sham in nature. 7. We have carefully considered all relevant aspects of the facts and find no merit in the grounds of the appeal as filed....