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TMI Blog2021 (11) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... /s.143(3) (for the AY.2016-17) of the Income Tax Act, 1961 [in short, 'the Act']; respectively. Heard both the parties. Case files perused. 2. It transpires at the outset that the assessee's pleadings raise its four-folded issues in lead AY.2010-11's appeal ITA No.396/Hyd/2020 whilst challenging legality of the impugned Section 143(3) r.w.s.153A assessments followed by suppressed income on account of out of books production/turnover of Rs. 12,29,20,136/- Section 40A(3) disallowance of Rs. 8,32,282/- and Section 68 un-explained cash credits addition of Rs. 3,75,75,971/- thereby treating commission income as bogus; respectively. There is further no dispute that the assessee has raised identical substantive grounds in the remaining six appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .com 149] (Cal) hold in identical terms that such a search assessment in absence of any incriminating material found or seized during the course of search is not sustainable. The Revenue's case in light of the hon'ble jurisdictional high court's decision in Gopal Lal Bhadruka Vs. DCIT (2012) [346 ITR 106] (AP) CIT Vs. Rajkumar Arora [367 ITR 517] (All) & E.N.Gopa Kumar Vs. CIT (2016) [390 ITR 131 (Kerala) is that the department can very well initiate/frame Section 153A assessments for determining total income of an assessee involving Section 132 search action. We find no substance in the latter's preceding arguments since the hon'ble jurisdictional high court; more particularly, nowhere took a contrary view that the impugned assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concealed its alleged suppressed turnover in all these assessment years. This itself is the perfect instance wherein the learned departmental authorities have gone by extrapolation method so as to presume the specified clandestine turnover going by assumptions in power consumption's sectoral norms than finding any specific fault with the raw-material consumed as well as the corresponding fixed assets etc. showing any abnormal repairs etc. Case law (2015) 371 ITR 373 (P&H) CIT Vs. Ram Steel Industries; (2020) 182 ITD 441 (Ahmedabad), DCIT Vs. M/s.Asian Granito India Ltd. (246 ITR 671) (Bombay), CIT Vs. C.J.Shah and Co. (2000) [246 ITR 671] (Bom) hold that such an addition based merely on sectoral power consumption trends is also not sustain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments only than those involving the transport invoices on whole-sum basis. This is also not the Revenue's case that all of these invoices are well beyond the specified limit of the cash payment in the relevant previous year. We therefore hold that the impugned addition based on mere search statement which goes against the record, is not sustainable. The same is directed to the deleted in all the appeals. 9. We are now left with Section 68 addition of Rs. 3,75,75,971/- which represents the assessee's commission income treated as bogus un-explained cash credits in both the lower proceedings. There is hardly any dispute that the assessee had claimed to have received the impugned sum(s) from Mumbai based company M/s.Benzo Chem Industries P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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