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Judgment
PER MADHUMITA ROY, JUDICIAL MEMBER:
The instant appeal is directed against the order dated 31.07.2025 passed by the Ld. Commissioner of Income Tax(Appeals)-30, (hereinafter referred to as Ld. CIT(A), New Delhi, arising out of the Assessment Order dated 31.03.2024 passed under Section 147 of the Act, pertaining to Assessment Year 2019-20.
On the basis of a search conducted under Section 132 of the Act on 17.12.2021 on Galaxy Group, Shri Pradeep Indra Prasad Agarwala (founder of Galaxy Group) and entry providers Shri Deepak Agarwal and Shri Himanshu Verma, wherein documents were seized containing information showing the assessee has been beneficiary of accommodation entries of Rs.11,54,000/- from the entities controlled by the above searched entry operators, with the approval of the competent authority, the reopening was initiated upon issuing notice under Section 148 of the Act on 13.01.2023 by the ld. Assessing Officer and after following entire statutory formalities, the assessment was finalized upon making addition of Rs.11,54,000/- under Section 68 of the Act as received by the assessee from the non-descript companies having no genuine business neither creditworthiness as alleged. The said addition was further confirmed by the Ld. First Appellate Authority hence, the instant appeal before us.
It is the case of the assessee that the impugned amount of Rs.11,54,000/- is nothing but the repayment made by the CEA Consultant Private Limited. In this regard, the assessee submitted certain documents in order to justify the advance of Rs.25 lakhs was given to CEA Consultant Pvt. Ltd. by the appellant on 10.06.2015 and partial payment of Rs.13,46,000/-was received on 30.08.2017 during the Financial Year 2017-18 and remaining balance of Rs.11,54,000/- on 13.11.2018 during the Financial Year 2018-19.
Heard both the parties and perused the material available on record. An amount of Rs.11,54,000/- was added in the hands of the assessee u/s 68 of the Act as unexplained credit, treating the receipt from CEA Consultant Pvt. Ltd. as bogus accommodation entries and Rs.34,620/- under Section 69C of the Act on account of unexplained expenditure towards commission @3% on such entry. It is the case of the Revenue that the assessee has not been able to justify the creditworthiness and the genuineness of the company from whom the impugned amount of Rs.11,54,000/- was received.
Furthermore, the incriminating material found during the course of search on Galaxy Group coupled with the statement of entry operator like Shri Himanshu Verma and Shri Deepak Agarwal who admitted of providing accommodation entry through layered entities including the CEA Consultant Pvt. Ltd. from whom the impugned amount was received by the assessee were relied upon. Further that the bank transactions corroborated that the funds routed from the appellant part of the Hawala like arrangements without genuine business activities.
The modus operandi of the entry operators as detailed in the investigation report further strengthen the view of the Revenue against the assessee which has not been able to be controverted satisfactorily by the ld. AR even before us and therefore, considering the entire aspect of the matter in our considered opinion, the impugned addition of Rs.11,54,000/- in the hands of the assessee made by the Ld. Assessing Officer and further confirmed by the Ld. First Appellate Authority is just and proper so as not to warrant interference.
In the result, the appeal of the assessee is dismissed.