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2019 (4) TMI 277 - ITAT INDOREAssessment u/s 153A - Addition based on seized documents - addition of net profit @2% of suppressed receipts - A.O treated them as incriminating material and went ahead to make additions for suppressed receipts @10% of the gross receipts disclosed by the assessee in the regular books of accounts - HELD THAT:- In these given circumstances it cannot be said that the addition for suppressed receipts made by A.O are not based on any incriminating material. Though the assessee is challenging it to be a dumb document but the addition made by the Ld. A.O have a direct nexus with the incriminating material found during the course of search. Various judgments referred and relied by the Ld. Counsel for the assessee can apply only in those cases where the additions for completed assessments post search are made without any basis of incriminating material found during the course of search. In the case of assessee the facts are different because the additions for Assessment Year 2007-08 to 2011-12 have been made by Ld. A.O on the basis of incriminating material found during the course of search and such incriminating material has no specific mention of the assessment year for which they relates except for few entries, therefore the A.O was within his powers to make the additions for the block of assessments for Assessment Years 2007-08 to 2013-14 taking the basis of incriminating material found during the course of search. Therefore this common Ground No.2 raised by the assessee for Assessment Year 2007-08 to 2011-12 needs to be dismissed. Addition on the suppressed receipts - HELD THAT:- alleged seized material referred to by the Ld. A.O contains certain business transaction not explained satisfactorily by the assessee before the lower authorities and also before us which justify the action of the Ld. A.O of rejecting the books of accounts and estimating the suppressed receipts. Though Ld. A.O made the addition for suppressed receipts which in our view was not justified and Ld. CIT(A) was fair enough to apply 2% of net profit rate on the alleged suppressed receipts by taking basis of net profit rate disclosed by the assessee for various assessment years which ranges from 0.59% to 2.05%. In our considered view no interference is called for in the findings of Ld. CIT(A) sustaining the addition to the extent of 2% of the enhanced turnover. Unexplained cash deposit u/s 68 - peak cash credit addition - HELD THAT:- If an addition for peak cash credit of ₹ 1,44,579/- is sustained for 2012-13 it will take care of the peak cash credit with the assessee and thus no addition of ₹ 9,52,752/- and ₹ 31,30,750/- is called for. We accordingly order so and sustain the addition for ₹ 1,44,579/- for unexplained cash for Assessment Year 2012-13 and delete the addition for ₹ 31,30,750/- for Assessment Year 2013-14. In the result Ground No.3 for assessee’s appeal for Assessment Year 2012- 13 is partly allowed and that for Assessment Year 2013-14 is allowed. Unaccounted cash receipt - HELD THAT:- Some employee of the assessee or the group company has written these figures but these documents were found at the assessee’s premises and has the reference of assessee but he failed to explain the transactions in these seized documents even when the burden lies heavily on the shoulders of the assessee, which in the instant case seems not to have been properly fulfilled. As the reply/submission made by the assessee/Ld. Counsel for the assessee in our view are unsatisfactory and vague, we find no reason to make any interference in the findings of Ld. CIT(A) confirming the addition for unaccounted cash receipt. Addition regarding Agra project of IBD Group - unaccounted investment/expenditure on the basis of seized paper - HELD THAT:- assessee cannot go away without explaining the contents of such seized material which has some bearing/connection with the business projects run by the group concern. Ld. A.O has also not made proper enquiry about IBD project of Agra so as to correlate the seized material showing the entry of ₹ 7,33,000/- with the details if any of IBD group. In our view this issue of addition of ₹ 7,33,000/- needs to be set aside to the file of Ld. A.O for afresh adjudication so as to decide accordingly as per the provisions of law after calling necessary information from the assessee about the Agra project and IBD group and any other details as necessary to examine the facts after providing reasonable opportunity to the assessee to file its submission in this regard. - ground is allowed for statistical purposes
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