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2023 (9) TMI 1319 - HC - Income TaxReopening of assessment u/s 147 - principal allegation which is levelled against the petitioner is that he is a beneficiary of an accommodation entry provided by one Mr Bajrang Lal Periwal, via a company going by the name BKR Capital Pvt. Ltd.- HELD THAT - The sum and substance of the reply filed by the petitioner was that he had not taken any loan from BKR but, instead, deposited Rs. 40,00,000/- with BKR, and funds for this purpose were drawn from his savings bank account, maintained with the Defence Colony, New Delhi Branch of Standard Chartered Bank. The details of the savings bank account were also provided in the reply dated 03.03.2023. The first part of this paragraph does not align with the second part, however what does come through if both parts are read together is the petitioner had, in fact, deposited Rs. 40,00,000/- with BKR and not received the said amount by way of loan as alleged. AO though, was not persuaded, and went on to conclude in the order dated 26.03.2023, passed u/s 148A(d) of the Act that income amounting to Rs. 40,00,000/- had escaped assessment without providing the necessary basis in support of the application. Best way forward would be to dispose of the writ petition with the following directions (i) Since the principal allegation levelled against the petitioner is that he had availed a fictitious loan of Rs. 40,00,000/- from BKR, the AO will furnish the relevant material which will establish the said allegation. (ii) In case any fresh material is furnished, the petitioner will be given an opportunity to respond to the same. (iii) AO will, thereafter, accord personal hearing to the petitioner and/or his authorized representative and only thereafter proceed to frame the assessment order.
Issues Involved:
The judgment concerns a writ petition challenging notices and an order related to Assessment Year 2019-20, specifically addressing the allegation of a fictitious loan and income escaping assessment. Assessment of Alleged Fictitious Loan: The petitioner was accused of benefiting from an accommodation entry via a company, BKR Capital Pvt. Ltd., by allegedly taking a fictitious loan of Rs. 40,00,000. The respondents relied on a statement by Mr. Bajrang Lal Periwal, suggesting control over BKR. The petitioner countered by providing evidence that the amount was deposited, not borrowed, from his savings bank account at Standard Chartered Bank's Defence Colony branch. The court noted discrepancies in the petitioner's reply but directed the Assessing Officer (AO) to provide material supporting the loan allegation, allowing the petitioner to respond and have a personal hearing before framing the assessment order. Order for Disposal: The court ordered the writ petition to be disposed of with directions for the AO to substantiate the loan allegation with relevant material, allowing the petitioner to rebut and have a personal hearing before assessment. The judgment concluded by disposing of the writ petition in accordance with the provided terms, closing the pending application.
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