The Delhi High Court directed the Assessing Officer (AO) to furnish relevant material to support allegation in the matter of the availment of fictitious loan of Rs 40 lakhs.
The principal allegation which is levelled against the petitioner, Rakesh Kumar Mohindroo, 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. [“BKR”]. It was alleged that the petitioner has taken a fictitious loan amounting to Rs.40,00,000/- from BKR.
The respondents/revenue suggest that BKR is controlled by Mr Bajrang Lal Periwal. In support of this allegation, respondents/revenue relied upon a statement made under oath by Mr Bajrang Lal Periwal, under Section 132(4) of the Income Tax Act. The record showed that pursuant to the issuance of the notice under Section 148A(b) of the Income Tax Act, the petitioner had filed a reply. 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.
The Assessing Officer (AO), went on to conclude in the order, passed under Section 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.
A Division Bench of Justices Rajiv Shakdher and Girish Kathpalia and observed that “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. In case any fresh material is furnished, the petitioner will be given an opportunity to respond to the same.”
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