9911796707
TMI Blog2021 (9) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... f search. CIT(A) has also merely relied upon the statement of director and other person recorded during the course of search. Further, merely statement could not have been used in absence of any incriminating material found during the course of search corroborating such statement. Further, merely because the books of account was not available during the course of search such non availability of books of account also cannot be used against the assessee to make an addition in a concluded assessment. In view this, we find the issue is squarely covered by the decision of Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT] . Even during the course of hearing also ld DR could not show us any incriminating material based on which the addition has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Sweety Kothari, C. A.; For the Department : Shri H. K. Chaudhary [CIT] ORDER PER PRASHANT MAHARISHI, A. M. 1. These are two appeals are filed by the assessee for Assessment Year 2013-14 and 2015-16 against the order of the ld Commissioner of Income Tax (Appeals) - XXVI, New Delhi dated 01.08.2018 for both years. 2. For Ay 2013-14 assessee has raised the following grounds of appeal:- "1. The learned CIT (A) erred in law and on facts in holding that the assessment framed u/s 153A is valid ignoring that the assessment was a completed assessment and not abated besides that no incriminating material was found during the course of search. Thus no addition can be made u/s 153A of the Act and thus the additions so made should be deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly, notice u/s 153A was issued on 10.07.2017. In response to the notice, assessee submitted original return declaring income of Rs . 2,99,208/- . Thereafter the assessment proceedings were concluded by the ld AO/ ACIT, Central Circle-13, New Delhi by making an addition of Rs. 15,07,982/-. This addition was made on the finding that assessee has given an accommodation entry of sales and has earned commission at the rate of 1% on such sales. The total sales for this year was 15,07,98,240/-.Consequently, the assessment order was passed u/s 153A on 28.12.2017. The assessee aggrieved with that order preferred appeal before the ld CIT(A). Appeal of assessee was allowed by scaling down the commission income to 0.5 % instead of 1 %. Jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions and perused the orders of the lower authorities. We find that the assessee has filed original return of income on 29.09.2013 and search took place on 23.07.2015. Therefore, assessment for Assessment Year 2013-14 was concluded assessment as on the date of search. From order of the ld AO we do not find that addition has been made on the basis of the any incriminating material found during the course of search. The ld CIT(A) has also merely relied upon the statement of director and other person recorded during the course of search. Further, merely statement could not have been used in absence of any incriminating material found during the course of search corroborating such statement. Further, merely because the books of account w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recording any finding in this regard in the appellate order. Thus the expenses incurred for business purpose should be allowed as deduction. 2. The appellant craves the leave to add, substitute, modify, delete or amend all or any ground of appeal either before or at the time of hearing." 13. In this appeal the assessee challenged the disallowances of expenses of Rs. 7,41,179/- incurred for running the business of the assessee. 14. The fact shows that assessee filed it‟s return of income on 13.10.2015. The assessment u/s 153A pursuant to search dated 23.07.2015 was completed on 28.12.2017 wherein, total income of the assessee was computed @ 1% total sales of Rs. 1,87,17,200/- applying rate of earning ratio @1%. Consequently, tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has been taxed from the accommodation entry, the relevant expenditure incurred by the assessee for carrying on such business are also allowable to the assessee to determine the correct income of the business of the assessee. He further submitted the copy of the audited financial statement which were produced before the ld CIT(A). Copies of the purchase and sales bills were also produced, VAT returns are also shown to the ld AO. It was stated that the assessee has been alleged as a conduit company. 18. The ld DR vehemently objected the same and submitted that the learned assessing officer has rejected the books of accounts of the assessee as it was found to be bogus and merely used for providing accommodation entry of the bogus ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
