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TMI Blog2014 (1) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... e was any material nor any information that the assessee is indulged in incurring bogus expenses - Merely on rejection of books of accounts, no addition can be made, if there is no basis or material – Decided in favour of Assessee. - ITA Nos.1430 to 1432/Mum/2013 - - - Dated:- 12-6-2013 - Shri R. K. Gupta, JM,JJ. For the Petitioner : Shri Uttam G. Bothra For the Respondent : Shri Arun Kumar ORDER These are three appeals by the assessee against the order of CIT(A)-16, Mumbai relating to the assessment years 2005-06, 2006-07 2007-08, respectively. 2. Since common issues are involved in all the cases, therefore, for the sake of convenience, all these three cases have been heard and disposed of by this consolidated order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has not declared any capital gain/loss or disposal of shares. Certain discrepancies were noted by the AO and accordingly he rejected the books of account. The AO in para 11 has noted that the assessee company indulged in the share transactions to fund the investment of various companies, as the other companies in which the assessee company invested is the ultimate beneficiary of the circular transactions. Therefore, it is clear the intention of the assessee is to accommodate or support other group concerns or outsiders in their dubious business activity. The AO further noted that the return from such activities are either in the form of cash or in kind. As per market information, for providing such financial capital/book entry transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs.8090/-, the assessed income is Rs.2,58,860/-. 5. In appeal, the CIT(A) confirmed the action of the AO. 6. After considering the order of the AO and CIT(A) and the submissions, I found that both the additions made by the AO which is confirmed by the learned CIT(A) are merely on presumption and assumption basis. There is no evidence either before the AO or before the CIT(A) to hold that the assessee has paid any commission or earned any commission on account of investment made during the year or investment received during the year. Therefore, without any material on any information, estimation of commission income was without any basis and cannot be sustained. Accordingly, the same is deleted. 7. Remaining addition of Rs.62,190/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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