EFFECTIVE EXIM PRIVATE LIMITED,DELHI V. CIRCLE 7(1), DELHI, DELHI

ITA 446/DEL/2024

AI Insights

The case involves appeals by Effective Exim Private Ltd. against the orders of the Learned Commissioner of Income-Tax (Appeals)/National Faceless Appeal Centre, which arose from the assessment orders of the Assistant Commissioner of Income-Tax, Circle-9, Delhi. The assessments for the years 2012-13 and 2017-18 included additions for unexplained cash credits and unexplained expenditure, respectively. The Tribunal dismissed the appeals, noting the absence of the appellant's representation despite multiple notices and upheld the lower authorities' findings based on the evidence of accommodation entries received from M/s. Dhawan Trade Corporation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40219 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Unexplained expenditure; Principle of natural justice; Accommodation entries; Competent authority; Bogus
• Section: 148; 142(1); 143(2); 143(1); 68; 69; 69C

Judgement Text

" INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 445/DEL/2024 Asstt. Year: 2012-13 ITA No. 446/DEL/2024 Asstt. Year: 2017-18 Effective Exim Private Ltd. 3/17 Ground Floor, West Patel Nagar, Delhi-1100 08 PAN No. AABCE6155E Vs. Circle 7(1), Delhi (Appellant) (Respondent) O R D E R PER VIMAL KUMAR, JUDICIAL MEMBER: The appeals filed by the Assessee are against separate orders dated 07.12.2023 passed by the Learned Commissioner of Income-Tax(Appeals)/National Faceless Appeal Centre(NFAC), Delhi (hereinafter referred as ‘Ld. CIT(A))’ arising out of assessment orders dated 22.12.2019 and 26.12.2019 of the ACIT, Circle-9, Delhi (hereinafter referred as ‘Ld. A.O.’) under Sections 143(3)/147 of the Income-Tax Act, 1961 (hereinafter Assessee by: N o n e Department by: Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing: 05.03.2025 Date of pronouncement: 19.03.2025 ITA Nos.445 & 446/Del/2024 2 referred as “the Act”) for the assessment years 2012-13 and 2017-18 respectively. 2. Both the appeals involve similar facts, grounds of appeal and common issues. For the sake of facility, both were heard together. ITA No.445/De/2024 is taken as lead case. 3. Brief facts of the case are that the appellant/assessee company filed return of income-tax on 30.09.2022 declaring loss of Rs.8,58,489/- for AY 2012-13. The ITR was processed under Section 143(1) of the Act. Notice under Section 148 of the Act dated 31.03.2019 was issued with the prior approval of the competent authority after recording the reasons for reopening of assessment in the case. In response to the notice issued under Section 148 of the Act, the assessee filed its return of income on 11.09.2019 at a loss of Rs.2,32,388/-. Vide letter dated 23.05.2019, copy of reasons recorded for reopening the case was provided to the assessee. The case was received by the Ld. A.O. vide order dated 24.10.2019 passed under Section 120 of the Income-Tax Act, 1961 by the Pr. CIT-03, New Delhi. Further, a notice dated 18.11.2019 under Section 143(2) of the Act along with questionnaire was issued to the assessee. The assessee filed its reply from time to time. An information in this case was ITA Nos.445 & 446/Del/2024 3 received from DDIT(Investigation), Unit-1(3), New Delhi vide letter dated 27.03.2019 that M/s. Effective Exim Pvt. Ltd. has received accommodation entries of Rs.44,50,000 from M/s. Dhawan Trade Corporation. Further, on the basis of analysis of information, it was observed by the Investigation Wing that cash were credited from different parts of the country viz. Jammu, Rajkot, Ahmedabad, Charminar, Kanpur, Shilong, Kochi, Ambala, Kannur, Bharuch etc. And amount so credited were systematically transferred through banking channels like RTGS/Pay Order and DDs. Vide notice issued on 18.11.2019 under Section 142(1) of the Income-Tax Act, 1961, assessee was asked to submit the details relating to money transactions with M/s. Dhawan Trade Corporation. Assessee only uploaded ledger account of Dhawan Trade Corporation. 4. On completion of assessment proceedings, Ld. A.O. vide order dated 22.12.2019 made additions of Rs.24,50,000/- was made under Section 68 of the Act and Rs.24,500/- as unexplained expenditure under Section 69C of the Act. 5. Against the order dated 22.12.2019 passed by the Ld. A.O., appellant/assessee filed appeal before the Learned CIT (A) which was dismissed vide order dated 07.12.2023. ITA Nos.445 & 446/Del/2024 4 6. Being aggrieved, the appellant/assessee preferred present appeal with following grounds: 1. On the facts and circumstances of the case, the Ld. ACIT, Circle 9(2) has erred in making an addition of Rs.24,50,000 on account of bogus transaction and concealed income u/s and addition of Rs.24,500 on account of bogus transaction and concealed income u/s 69 which is against law and liable to be deleted. 2. The order is passed without giving sufficient opportunity. Hence the same is bad in law and also against the law of natural justice. 3. The assessee reserves the right to add/amend any one or more ground of appeal.” 7. Despite notices, none appeared on behalf of appellant/assessee on 28.05.2024, 29.08.2024 and today. 8. Learned Departmental Representative for the Revenue relied on the orders of the departmental authorities. 9. From the examination of entire records in the light of the aforesaid submissions, it is evident that the appellant/assessee failed to appear before the appellate proceedings despite repeated notices. Ld. CIT(A) vide order dated 07.12.2023 upheld order dated 22.12.2019 of Ld. A.O. In view of aforesaid material facts, the grounds of appeal nos. 1 and 2, devoid of merit are untenable and are dismissed. ITA Nos.445 & 446/Del/2024 5 10. In ITA No.446/Del/2024 pertaining to assessment year 2017-18, issues raised are similar, therefore, following our reasoning in ITA No.445/Del/2024 as a lead case and our decision in this appeal shall follow mutatis mutandis. 11. In the result, both the appeals filed by the assessee are dismissed. Order pronounced in the open court on 19/03/2025. Sd/- Sd/- (M BALAGANESH) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19/03/2025 Mohan Lal Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "