TMI Blog2014 (4) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002-03, no disallowance of expenses was made while the AO, did not point out any item of expenditure, warranting disallowance – thus, 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, any interference cannot be called for – Decided against Revenue. - ITA No. 4147/Del/2012 to 4152/Del/2012, C. O. No. 355-360/Del/2012 - - - Dated:- 28-3-2014 - Shri B. C. Meena And Shri A. T. Varkey,JJ. For the Appellant : R. S. Gill, CIT DR For the Respondent : Anil Jain, Adv ORDER Per A. T. Varkey, Judicial Member. These appeals filed by the Revenue and the corresponding cross-objections filed by the assessee against the order of the ld CIT(A)-II, Delhi for the Assessment Years 2003-04 to 2008-09. 2. The ground of appeal in all the assessment years are same, so, we are reproducing the ground of appeal of the year i.e. Assessment Year 2002-03. 3. The grounds of the appeals In ITA No. 4147/Del/2012 are as under:- 1. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs. 8,03,063/- made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not abate for the purpose of initiation of proceedings u/s 153C and as such the assessment being bad in law deserves to be quashed. 5. Apropos Ground No. 1 and 2 which are the common grounds of Appeal in all the appeals of revenue, which are in respect of deletion of addition on account of unexplained purchases u/s 69C of the Income Tax Act, 1961 (herein after the Act ) and deletion of addition of disallowance of 100% on expenditure and depreciation claimed by the assessee. 6. Brief facts of the case are that search and seizure operation u/s 132 of the Act was conducted in the premises of Shri B. K. Dhingra, CA, Smt. Poonam Dhingra and M/s. Madhusudan Builcon Pvt. Ltd. on 20th October, 2008. During the course of the search at residential premises at F-6/5, Vasant Vihar, New Delhi, certain documents belonging to the assessee were seized. Consequently, in response to notice u/s 153C read with section 153A of the Act, assessee filed the following returned income for the aforesaid six assessment years. A.Y. Returned Income 2003-04 Nil 2004-05 Rs. 1,040/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the issue in hand. 10. The Tribunal at para 6to para 8 of the order in ITA No. 5495-5500/Del/2011has 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 ld 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, according to the learned CIT(A), was duly explained. Likewise, the learned CIT(A) found that sales had been made by account payee cheques and duly reflected in stock registers and supported by sale and purchase vouchers. The ld CIT(A) ITA No. 5495-5500/Del/2011 CO Nos. 31 to 36/Del/2011 also found that the Assessing Officer in his remand report did not comment adversely on the submissions of the assessee in respect of purchases and sales. Accordingly, the ld CIT(A) deleted the aforesaid additions in these six assessment years. While interpreting the provisions of section 69C of the Act, Hon ble jurisdictional High court in Radhika Creation (supra) held that the focus of section 69C is on the source of such expenditure and not on the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the case of AA Testronics Solutions in ITA No. 4233-4228/Del/2010 order dated 20.10.2012 and was followed by the ITAT Delhi Bench in ITA Nos. 1068-1073/Del/2012 and CO Nos. 173-178/Del/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 behalf of the assessee and the contentions of the ld DR, it is seen that the matter is indeed covered in favour of the assessee by Anupama Links Pvt. Ltd (supra). The first and foremost, the search in the case of the assessee is the same as that in Anupama Links Pvt. Ltd. . The Assessing Officer in the two cases is also the same. The trade of both the assessee is one and the same i.e., trade of textiles. Then, in both cases, books and stock register were filed and the Assessing Officer did not reject the same. The ld CIT(A) has, as noted hereinabove, taken into account the fact that all the sales made by the assessee stood recorded in the assessee s books of account, which included the sales and purchase vouchers and stock registers maintained b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
