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TMI Blog2014 (11) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the assessee represented its income from undisclosed sources. 3. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs. 3,73,998/- made by the Assessing Officer by way of disallowance of 100% disallowance of expenditure and depreciation claimed by the assessee." 4. The facts relating to the grounds of appeal brought out by the Assessing Officer in Paras 8, 9 & 11 reads as under:- "8. In the case of present assessee all the purchases & sales are in cash. The items purchased & sold are textile & fabric. The name and style of the textiles & fabrics are "Denim, Fabrics K-III Super Fine (N), Fabric (PS), Fabric (PS) Embroidery, Fabric (PS) Excel, Fabrics, Kashmiri Fabrics-I, Kashmiri Fabrics-I(D)" etc. From these items it can be seen that the assessee is not dealing in branded items. There is no name of any company in these products. Shawls are purchased and sold in pieces and rest other items are sold in meters. It is further seen that the purchases & sales are within M/s Thaper Homes Group of cases. In inventories of Fabric & Textile Goods shown in the balance sheet the closing stock of last year, stands at Rs. 10,04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4152/Del/2012, A.Ys. 2003-04 to 2008-09 and CO Nos. 355-360/Del/2012 in the case of Glorious Club Pvt. Ltd. order dated 28.03.2014 as Paras 9 to 13 onwards held as under:- "9. We have heard both the sides and carefully perused the records and the case laws cited by both the parties. We find that similar issue which WQS decided by the same Assessing Officer and Id CIT(A) stemming out of the same search and seizure proceedings had come up before 'A' Bench of the Tribunal in the case of the ACIT, Central Circle-21 Vs. Blue Luxury Index Pvt. Ltd. in ITA Nos. 5495-5500/Del/2011 with CO. Nos. 31-36/Del/2011 order dated 13.06.2012. Both parties agree that the finding of the Tribunal in the case of M/s. Blue Luxury Index Pvt. Ltd. (Supra) cover the issue in hand. 10. The Tribunal at para 6 to para 8 of the order in ITA No. 5495-5500/DeI/2011 has held as follows:- "6. We have heard the learned DR and have gone through the facts of the case. Indisputably & as pointed out by the Id CIT(A), the entire purchases added by the Assessing Officer are accounted for the books of account. The Assessing Officer, without rejecting the books results added the entire purchases, source of which, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made while the Assessing Officer, in the years under consideration, did not point out any item of expenditure, warranting disallowance. In these circumstances, and in the absence of any basis, when the Revenue did not even identify any specific amount of expenditure, which was not related to the business of the assessee, we are not inclined to interfere. Therefore, ground No.3 in these appeals is also dismissed. 8. In view of our aforesaid findings, rejecting the appeals of the Revenue, the grounds raised by the assessee in their COs become purely academic and therefore, do not survive for our adjudication." 11. This decision was followed by the ITAT in the case of Anupma Links Pvt. Ltd. in ITA No.4135-4140/Del/2011 order dated 12.10.2012 as well as in the case of AA Testronics Solutions in ITA No. 4233-4228/DeI/2010 order dated 20.10.2012 and was followed by the ITAT Delhi Bench in ITA Nos. 1068-1073/DeI/2012 and CO Nos. 173-178/DeI/2012 by order dated 31.10.2012. Hence on merit the issue is covered in favour of the assessee. 12. The ITAT in the case of ACIT Vs. AA Testronics Solutions Pvt. Ltd, cited has held as under:- "8. Having considered the written submission filed on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we do not find any error in the orders passed by the Id CIT(A) and r accordingly, the same are confirmed. The grievance raised by the department by way of the grounds of appeal taken is, therefore, rejected." 13. Since the facts involved are similar, and since Revenue did not place any material before us to controvert the finding of the facts recorded by the ld CIT(A), so as to enable us to take a different view in the matter, we have no basis to interfere with the impugned order of the Id CIT(A), therefore respectfully following the decision of Hon'ble jurisdictional High Court and also the decisions of co-ordinate Bench, we dismiss the revenue's appeal both the grounds and confirm the order of the Id CIT(A)." 9. Consistent with the view taken therein we uphold the findings of the First Appellate Authority that the addition in question was wrongly made under Section 69C of the Act as the expenditure was accounted for in the regular books of account and hence the source is obviously explained. 10. In the result, we uphold this finding of the ld. CIT(A) and dismiss the appeal of the Revenue on these issue. 11. Grounds No. 3 & 4 are against 100% disallowance of expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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