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2021 (11) TMI 969 - AT - Income TaxSuppressed turnover - DR submitted that the assessee’s authorised person had duly admitted the impugned suppressed turnover in the search statement - HELD THAT:- No such admission from the assessee’s side since all its authorised persons had done was to estimate the corresponding power sector consumption trends than anything else. Be that as it may, the CBDT’s twin circulars dt.10-03- 2003 and 18-12-2014 have made it clear that such admissions or confessional statements made during the course of a search or survey; as the case may be, do not hold any significance in absence of contemporaneous supportive evidence. We conclude in all these facts that both the lower authorities have erred in law and on facts in making the impugned identical addition of suppressed turnover in lead AY.2010-11 and varying sums in all remaining assessment years. The same stands deleted in all appeals. Disallowance u/s 40A(3) - HELD THAT:- We notice that the assessee appears to have made trip-wise payments only than those involving the transport invoices on whole-sum basis. This is also not the Revenue’s case that all of these invoices are well beyond the specified limit of the cash payment in the relevant previous year. We therefore hold that the impugned addition based on mere search statement which goes against the record, is not sustainable. The same is directed to the deleted in all the appeals. Addition u/s 68 - addition of commission income as “un-explained cash credits” - HELD THAT:- There is hardly any dispute that the assessee had claimed to have received the impugned sum(s) from Mumbai based company M/s.Benzo Chem Industries Pvt. Ltd., through banking channels along with corresponding TDS deduction as well. Learned lower authorities hold that the same is in the nature of accommodation entry only since the corresponding entity(ies) had not supported its explanation of having arranged the marketing and sales for the payer entity. Learned departmental representative sought to clarify that the assessee’s authorised person’s statement could not throw light on the place(s) of these entity(ies) as well. We decline the Revenue’s instant last adjustment as well since not only all the impugned commission payments have been subjected to TDS by the concerned payer M/s.Benzo Chem Industries Pvt. Ltd. but also it has come on record that latter; on its own, had very well confirmed before the Assessing Officer qua sales & marketing arrangement with the taxpayer vide letter dt.24-11-2015. We further make it clear that the Assessing Officer herein did not undertake any further confirmation from the payer’s side since he has adopted the above stated technical reasoning to treat the assessee’s commission income as “un-explained cash credits”. We therefore hold that the same deserves to be deleted.
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