Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1261 - AT - Income TaxAssessment u/s 153A - validity of action u/s. 132 - Held that:- Adverting to the facts of the present case, it is found that not only the documents relating to the assessee’s business were found at 102 and 103, B-Wing, Parmar Trade Centre, Sadhu Vaswani Chowk, Pune, but they were incriminating in nature and on the basis of such documents the assessee surrendered certain income as well. The name of the assessee also appears in the panchanama drawn for that premises. Action u/s. 132 of the Act was validly taken against the assessee, pursuant to which the assessment got completed u/s. 153A of the Act. No illegality can be found in the framing of assessment u/s. 153A of the Act. Addition on loose papers as found and seized from the searched premises - Held that:- The situation is that the assessee paid its share of unaccounted income of ₹ 123.13 lakhs to Sushil Agarwal and such income was generated in books by obtaining inflated purchase bills, on which he earned income at the rate of 25% at ₹ 130.88 lakhs. It is the higher of unexplained inflow or unexplained outflow, which can be subjected to tax. The assessee has already surrendered a sum of ₹ 123.13 lakhs, being, payment of unaccounted income to Sushil Agarwal. If we reduce the outflow of unaccounted income of ₹ 123.13 lakhs from the inflow of unaccounted income generated by procuring accommodation bills at ₹ 130.88 lakhs, any further addition which is warranted, can be a sum of ₹ 7.75 lakhs. We, therefore, direct to restrict the addition to a sum of ₹ 7.75 lakhs. Bogus purchases - Addition in respect of entries recorded in the seized document - Held that:- We have already directed to include a sum of ₹ 7.75 lakhs in the income of the assessee for the preceding year on the basis of profit of 25% on total bogus purchases of ₹ 5.23 crore for both the years, as reduced by the surrender of ₹ 123.13 crore made by the assessee for the instant year. If we view total bogus purchases pertaining to both the years in juxtaposition to the surrender made by the assessee in income for the instant year, there remains nothing more to be added on this score to the total income of the assessee for the year under consideration. We, therefore, order to delete the addition
|