November 2022
Amendment to section 269SS, made by the Finance Act, 2015, to include “specified advances” within its scope w.e.f. 1st June, 2015 is prospective and applies to transactions entered by the assessee w.e.f. 1st June, 2015
35. ACIT vs. Ruhil Developers Pvt. Ltd. TS-702-ITAT-2022 (Delhi)
A.Y.: 2013-14
Date of order: 30th August, 2022 Sections: 269SS, 271D
Amendment to section 269SS, made by the Finance Act, 2015, to include “specified advances” within its scope w.e.f. 1st June, 2015 is prospective and applies to transactions entered by the assessee w.e.f. 1st June, 2015.
FACTS
A search was conducted on 17th December, 2013 in the case of the assessee. In the course of search, Mr. Neeraj Ruhil, Director of the assessee admitted in a statement recorded u/s 132(4) that entries of Rs. 5.30 crores in the books of the assessee company on account of advances were not genuine, and that the same was undisclosed income of the assessee company which has been introduced in the books. However, in the return of income filed u/s 153A, this amount was not offered for taxation.
In the course of assessment proceedings, the assessee was asked to furnish a list of persons from whom assessee claimed to have received advances in cash. In response, the assessee furnished a list of 18 persons. Notices u/s 133(6) were issued to all the parties mentioned in the list provided by the assessee. Summons was issued to 18 parties and the assessee was asked to produce the parties who have not responded to summons. Of the 18 parties only two responded and their statement was recorded. The Assessing Officer (AO) held that these two parties did
