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TMI Blog2023 (11) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Department : Ms. Monika Dhami, CIT-DR ORDER PER ASTHA CHANDRA, JM The appeal filed by the Revenue is directed against the order dated 19.05.2017 of the Ld. Commissioner of Income Tax (Appeals)-23, New Delhi ( CIT(A) ) pertaining to Assessment year ( AY ) 2013-14. 2. The Revenue has taken the following grounds:- 1. The order of Ld. CIT(A) is not correct in law and on facts. 2. On the facts circumstances of the case, the Ld. CIT(A) has erred in quashing the order u/s 153A of the Act. 3. On the facts circumstances of the case, the Ld. CIT(A) has erred in law by holding that addition u/s 153A cannot be made without incriminating material gathered during course of search. 4. On the facts circumstances of the case, the Ld. CTT(A) has erred in deleting the addition of Rs, 1,50,00,000/- made by the AO on account of unexplained cash credit u/s 68 of the Income Tax Act, 1961. 5. On the facts circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 1,12,500/- made by the AO on account of unexplained commission expenses. 6. The appellant craves leave to add, amend any/all the ground of appeal before or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 1,71,34,000/- to K.D. Consultancy Pvt. Ltd. and had not received any amount from them. Attention of Ld. CIT(A) was drawn to the copy of ledger account along with audited balance sheet which formed part of the Paper Book. It was contended that the Ld. AO made the addition without applying his mind. 7. The Ld. CIT(A) considered the submissions of the assessee. He deleted the addition of Rs. 1,50,00,000/- on account of share application money under section 68 of the Act by observing and recording his findings as under:- 3.1.2 Ground nos. 01 to 18 and 20 in all the 03 cases/appeals for the above respective assessment years relate to addition on account of share application money u/s 68 of the Act. I have considered the submissions of the appellant and the assessment orders. The assessment orders in all the above respective cases/appeals for the above mentioned assessment years are verbatim the same/similar as also the submissions of the Lnd. AR in all the above respective cases/appeals for the above. mentioned assessment years and the only matter considered in the assessments and under challenge is the issue related to holding the share capital/share application /unsecure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed. (para-4.1.7). and that, no addition could be made without providing opportunity for cross-examination of the persons whose statements were relied upon by the AO make the addition and for this reason as well the addition is not sustainable. (para-4.1.5). and that, no addition could be made on the basis of a retracted statement and for this reason as well the addition is not sustainable. (para-4.1.6). 3.1.3.2 As regards the share certificate issued by various Appu Ghar group companies found from the corporate office of the group being pages-24 to 42 of Annx. A-17/M-2, the AO has observed that share certificate issued by various Appu Ghar Group Companies to different group companies of Bardias and the Jain family or in which they were somehow associated were found in the corporate office of the group (Annexure No A-22, A-23, A-26, A-27, A-28 A- 29 of party M-2). Vide order sheet dt. 25.04.2017 in the case of M/s Surana Buildtech Pvt. Ltd. for AYS 2011-12 2012-13 (supra) the appellant's AR was asked to submit copies of these seized documents which have been submitted and I find that these relate to following companies i. Appu Ghar Recrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of M/s Surana Buildtech Pvt Ltd. for AYS 2011-12 2012-13 (supra). Following the same, and in view of the facts in these two cases discussed herein above, the additions in both the above assessments of M/s R.V. Buildtech Amusement Pvt. Ltd. and M/s VGRM Infrastructure Amusement Pvt. Ltd. for the AY 2013-14 are deleted. 8. As regards addition of Rs. 1,12,500/- on account of commission expenses incurred for getting accommodation entries under section 69C of the Act, the Ld. CIT(A) deleted the same observing thus: ...the facts of the matter are similar which have been considered in my order dated 4.5.2017 in the group case of Surana Buildtech Pvt. Ltd. in Appeal No. 337 and 338/6-17 for AY 2011-12 at paras 4.2 and for similar reasons and following the same the addition on this account is deleted as well . (page 10 of Ld. CIT(A) s order) 9. In so far as the addition of Rs. 1,71,34,000/- being unsecured loan obtained by the assessee from K.D. Consultancy Pvt. Ltd. treated by the Ld. AO as assessee s own unaccounted funds routed through the group companies is concerned, the Ld. CIT(A) deleted the same by observing and recording his findings in paras 3.3.2.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the Ld. AO. However, the Revenue is dissatisfied by the deletion of addition of Rs. 1,50,00,000/- under section 68 of the Act and deletion of addition of Rs. 1,12,500/- under section 69C of Act made by the Ld. AO and all the grounds relate thereto. 11. We heard the Ld. CIT-DR. None for the assessee attended the hearing on 30.08.2023 when the appeal was called out. We therefore, proceeded to decide the appeal after hearing the Ld. CIT-DR. 12. The Ld. CIT-DR supported the order of the Ld. AO. She submitted that the Ld. CIT(A) was not justified in holding that addition under section 153A cannot be made without incriminating material gathered during search. She defended the Ld. AO s action in making the impugned additions. 13. We have carefully perused the material available in the records and considered the submissions of the Ld. CIT-DR. We have found that the Ld. CIT(A) has taken note of the fact that the assessee declared nil income in original return filed on 27.09.2013 as also in return filed under section 153A of the Act on 15.11.2016 for AY 2013-14. However, the Ld. AO made three additions aggregating to Rs. 3,22,46,500/- out of which the addition of Rs. 1,71,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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