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2022 (6) TMI 1452 - AT - Income TaxAssessment u/s 153A - bogus purchases - whether ‘satisfaction’ has not been recorded by AO of the searched person and when there was no incriminating document was found? - books of accounts of the company were rejected u/s 145(2) and a substantive addition was made in the hands of M/s. Orient Craft Ltd. and a Protective Assessment was made in the hands of assessee - addition @ 5% on account of alleged commission/brokerage as business income - HELD THAT:- Appreciating the matter on record it can be observed that in ITAT order [2021 (9) TMI 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 deleted then as per orders of ld. CIT(A) the protective assessment in the hands of present assessee / appellant will still revive. In fact the findings arrived by the Tribunal in case of M/s. Orient Craft Ltd. are to 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. 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.
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