TaxTMI 
TaxTMI 
2026 (3) TMI 608
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....ant F.Y. The assessee has filed his return of income for the year under consideration on 15.09.2012 declaring total income of Rs. 52,40,220/-. 3. The AO of the assessee received information from the Investigation Wing Department that M/s Keshav Cloth, Prop. Anita Rani Singhal, located Shop No. 2, Ground Floor, East Guru Angad Nagar, Delhi-110092, had provided accommodation purchase entries amounting to Rs. 16,01,995/- to the assessee during the year under consideration. On the basis of the information, assessee's case was reopened by issuing a notice u/s. 148 of the Income-tax Act, 1961 [the Act, for short]. The Assessing Officer thereafter, passed a reassessment order u/s. 147 r.w.s 143(3) of the Act on 23.12.2019, making an additio....
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...., it is the say of the ld AR that the alleged 'accommodation entries' of purchase of fabric were entered into in the FY 2010-11, therefore, the 'accommodation entries' that added did not pertain to the FY 2011-12 relevant to AY 2012-13. The ld AR argued that only payments were made in year under consideration against the opening liability for purchases of cloth made in the FY 2010-11. Further, the ld AR stated that section under which addition is made is not stated. It is submitted that increase of returned income in assessment can be made either as disallowances of expenditure or addition of undisclosed income and to make a disallowance, a bogus claim/expenditure should be claimed in the year of assessment. As is clear from....
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....tly failed to comply with summons. The AO was informed that the assessee had taken accommodation entry from M/s Keshav Cloth, Prop. Anita Rani Singhal amounting to Rs. 16,01,995/. 9. The AO, upon receipt of information, verified the records with the AIR information and found that the assessee's return was only processed u/s. 143(1) and was never subjected to scrutiny assessment. Thereafter he recorded his reasons for reopening, comparing the information and investigation made by the Investigation Wing which formed the 'live link' for recording his reasons for reopening. We are of the considered view that the AO did not base his reasons for reopening only on the basis of specific, credible information but clearly applied his mind when he ....
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....these internal enquiries, the AO confirmed the findings of the Investigation Wing regarding M/s Keshav Clothes being a paper entity only and the transaction with it are mere in the nature of accommodation entries. We are thus of the view that the taxability of payment made to M/s Keshav Clothes has to be considered in the impugned year itself, devoid of any connection/relation with the purchase in the previous assessment Year, as there is no actual purchase made. Since the payment is made in the impugned year to an accommodation provider entity, the said payment is liable to be considered as unexplained expenditure u/s. 69C of the Act and taxed in the year of payment itself. 14. The fact that the AO has not specified the section under wh....