9911796707
TMI Blog2022 (6) TMI 1452X X X X Extracts X X X X X X X X Extracts X X X X ..... 1408 - ITAT DELHI] dated 24.09.2021 in ITA No. 3312/Del/2019 for assessment year 2015- 16 and [ 2021 (10) TMI 86 - ITAT DELHI] ITA No. 3311/Del./2019 for assessment year 2014-15 the substantive additions in the hands of M/s. Orient Craft Ltd. have been deleted. It can be observed that as been held that M/s. Orient Craft Ltd. has proved that the material was purchased from vendors involved and payments have been made through banking channel. It was further held that the voluminous documentary evidences filed by M/s. Orient Craft Ltd. clearly established the genuineness of purchase of fabric from the present assessee / appellant. That being so there is no force in the contention of the Ld. DR that if substantive additions are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for convenience the facts and grounds of AY 2014-15 are being taken on record. 2. The facts in brief are that a search was conducted 29.04.2015 at the various premises in the M/s. Orient Craft Group of Companies. Certain documents were seized from the premises of searched company which were found pertaining to the assessee. After recording necessary reasons in the case of searched company notice u/s 153C r.w.s. 153A of the Act was issued on the assessee. The Ld. AO concluded that the assessee is a paper entity operated by the owners of M/s. Orient Craft Ltd. for the purposes of evasion of taxes. The books of accounts of the company were rejected u/s 145(2). A substantive addition was made in the hands of M/s. Orient Craft Ltd. and a Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in confirming the action of Ld. AO in assuming jurisdiction u/s 153C and that too for this year and further erred in passing the impugned assessment order, more so when satisfaction has not been recorded by AO of the searched person and when there was no incriminating document was found. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in assuming jurisdiction and framing the impugned assessment order u/s 153C, is bad in law and against the facts and circumstances of the case and the same is not sustainable on various legal and factual grounds. 3. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in exercising his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Ld. AO in passing the impugned assessment order without there being requisite approval in terms of section 153D and in any case approval if any is mechanical without application of mind and is no approval in the eyes of law. 8. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234B of Income Tax Act, 1961. 9. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other. 4. Heard and perused the record. 5. On behalf of the assessee it was submitted by the Ld. AR, that in the case of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the effect that the purchases made from the present assessee were genuine therefore, the Bench is of firm view that protective additions in the hands of the assessee/ appellant was never sustainable. 7. In the light of aforesaid facts and circumstances the order of Ld. CIT(A) making additions on account of alleged commission / brokerage as business income is not sustainable. Consequently, ground No. 3 and 4 are allowed while remaining grounds are disposed as not pressed. The appeals are allowed and the impugned order of Ld. CIT(A) making additions of Rs. 1,78,779/- in the assessment year 2014-15 and Rs. 6,13,866/- in the assessment year 2015-16 are set aside. Order pronounced in the open court on 30th June, 2022. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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