The Income Tax Appellate Tribunal upheld the reassessment proceedings against assessee for alleged accommodation entries.
Facts
The appeal has been filed by the assessee challenging the order, passed under section 250 of the Income Tax Act, 1961 by the Commissioner of Income Tax (Appeals), Mumbai, for the assessment year 2009-10.
Decision
The division bench of B.R. Baskaran, Accountant Member And Sandeep Singh Karhail, Judicial Member noted that the Assessing Officer received the information from DGIT (Investigation) Wing, Mumbai about having vital information initially received from the Sales Tax Department of Maharashtra indicating that the assessee is a beneficiary of accommodation entries by way of bogus sales/purchase bills. On the basis of the aforesaid information, the Assessing Officer initiated proceedings under section 147 of the Act and issued a notice under section 148 of the Act.
The bench observed that on the basis of information received from the investigation wing, reassessment proceedings in the case of the assessee were initiated. Further, it is also well settled that sufficiency or correctness of the material is not a thing to be considered at the stage of recording of reasons.
The Tribunal found no infirmity in the reassessment proceedings initiated by the AO under section 147 of the Act and upheld by the CIT(A).
Case title: Nakoda Metal Industries v/s Income Tax Officer
Citation: ITA no.4958/Mum./2018
Author of Tax Concept